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LCFS prices fall as market participants anticipate major policy decisions

LCFS value indications drifted downwards today to $63.5, with sellers interest slipping to $64 and bids sitting in the low 60’s. Market participants prefer to bank credits, in anticipations of decisions to be made on the reconfirmation of the LCFS scheme on September 24th and the potential to move biodiesel tax credits from the blender to the producer. Unlike in the RFS scheme, LCFS credits do not hold an expiration date, and therefore regulatory parties can benefit from storing the credits and waiting to benefit from better prices at a later date.

The D4 RIN’s value fell to 45 cents after sitting at 55 cents last week, pushed by the plummeting SME price for fourth quarter, dropping by approximately 10 cents during the last week, while the D5/D6 spread moved tighter to 8 cents.

 

sep 4 price graph

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