How does the price of rins effect the margins for ethanol plants?

They don't RINS are FREE along with the purchase of a gallon of ethanol... RINS only matter to those who do not want to use Ethanol as required by the EPA.. In other words it's how much Big Oil wants to gouge each other... OR.. they could just buy the ethanol.. which is..  hmmm RBOB was.. $3.05 yesterday... on the board while ethanol closed down $.047 at $2.33...

Yup.. paying $1.00+ for a RIN in order to put more $3.05 in the tank vs $2.33...

btw.. ethanol stocks have grown over the past 3 weeks.. nearing the end of the summer driving season.. when we were supposed to be out..

So in review..

a) We've got the LARGEST CORN CROP EVER.. on the way...
b) RINS.. which you can get for FREE can be bought from someone else at a $1.??
c) Something that costs $2.33.. is SOMEHOW supposed to make something that costs $3.05.. more expensive...???

.. who ever thougth of that could work in the wing of the government that forecasts crop sizes...

Don't get me wrong.. it's a large crop.. but then again 12.8 would be a large crop also.

.. and at 12.8 we've got MORE THEN ENOUGH to meet the RFS.

USDA started at 14.1.. now they are down to 13.95.. They may not get to 12.8... until some time next year...

"golly tighter then we thought..."

"strange world" that we live in.

.. or 13.1.. or 13.3.. or 13.5  if we are lucky.  But I'll agree with the bears.. on this .. it's at least a 12.8.. could be more.. NOT 14.1 though..

although.. "I could be wrong."