RIN prices posted modest losses as a recovery in the margin environment spurred selling.
The December 21 release of November RIN generation showed 1.99 billion credits generated, down 11% from a record 2.1 billion credits generated in the month prior.
Diesel weakness saw the soybean oil-heating oil (BOHO) spread widen to $1.28/gallon on December 8, a level not seen since early October. The spread rapidly narrowed to $1.08/gallon as diesel prices rebounded over the second and third weeks of the month. A narrower BOHO spread implies stronger biodiesel margins, which is bearish the D4 RIN all else equal.