US Admin delays decision on approval of eRINs as they fear backlash from farming states. RINs have already come down substantially as BOHO has essentially been stuck at 1.50 on front of curve but already trading 1.42 cents per gallon for Sep in expectation of the announcement. White House is in a difficult situation as this proposal has strong backing from Dept of Energy and EPA while USDA opposes it as they fear a strong backlash from farm states. The combination of eRINS and lack of approval of BTC (Biodiesel Tax Credit) past Sep 30 will cause a lot of headaches for vegetable oil traders as the combination of these two political items amount to close to $975/mt of support for biodiesel market demand.
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