Ethanol Market and Pricing Data - July 5, 2017

1. Ethanol, Fuels and Co-Product Pricing

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Market outlook: Ethanol futures continued to trade higher this week, the second week of price gains since the market hit 6-months lows in late June. The ethanol market has received secondary price support from corn futures, which are trading higher on drought-related concerns. U.S. spot sales have been sluggish given the holiday-interrupted week but have generally followed corn prices higher. 

Brazilian ethanol prices are lower this week as supply increases pressure the market. Brazil’s first-half June ethanol production was up 51 percent year-over-year, as the country processed 39.41 MMT of sugarcane. During the first-half of June 2016, Brazil processed 25.99 MMT of sugarcane. FOB Brazil ethanol prices were down $0.031 to $1.854/gallon today. The move increased the spread between FOB Houston and FOB Brazilian ethanol prices to -$0.309/gallon. 

Brazil’s ethanol production will likely continue its strong pace into July. On Monday, Brazil’s Petrobras announced price increases for gasoline and diesel, which will be supportive for ethanol production. However, Brazilian ethanol prices may not have hit their seasonal lows yet and Brazil’s political and currency situations leave additional downside price risk.  

In the export market, USDA said on Friday, July 1 that India’s ethanol imports would reach 132 million gallons this year, up from 106 million in 2016. USDA expected the growth to continue into 2018, when India could import 159 million gallons. U.S. ethanol exports to India are up 59 percent YTD while U.S. total ethanol exports are up 14 percent. 

Looking forward, ethanol prices should continue to find support in the U.S. and pressure in Brazil. U.S. ethanol production margins have come under pressure from rising corn prices, which should limit supply growth. Additionally, U.S. gasoline prices have been moving higher which will be supportive as well. Brazil’s political instability remains a risk and the country’s production growth should pressure prices. U.S. ethanol looks to remain competitive against Brazil for the near future.

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Price Database: If you are interested in historical price data, please click here.

2. Tariff Rates

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Global Tariff Rates

Tariff Rate Database: If you are interested in tariff rate data for all U.S. export markets, please click here.

3. Additional Market Resources

If you are interested in any of the reports described here, please click here.

Argentina Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Argentina.

Read here.

EU-28 Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in the EU-28.

Read here.

EU-28: Biofuel Mandates in the EU by Member State (GAIN)

This report provides an overview on the biofuel use mandates in the various EU member states. It supplements the EU-28 Biofuels Annual Report.  

Read here.

Canada Biofuels Annual 2016 (GAIN)

This report provides an overview on biofuel use in Canada.

Read here.

Brazil Biofuels Annual 2016 (GAIN)

This report provides an overview on biofuel use in Brazil.

Read here.

China Biofuels Annual 2016 (GAIN)

This report provides an overview on biofuel use in China.

Read here.

India Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in India.

Read here.

Philippines Biofuels Annual 2016 (GAIN)

This report provides an overview on biofuel use in the Philippines.

Read here.

Peru Biofuels Annual 2016 (GAIN)

This report provides an overview on biofuel use in Peru.

Read here.

Indonesia Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Indonesia.

Read here.

Romania Biofuels Market Overview 2017 (GAIN)

This report provides an overview on biofuel use in Romania.

Read here.

Thailand Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Thailand.

Read here.

Spain's Biodiesel and Renewable Diesel Overview 2017 (GAIN)

This report provides an overview on biofuel use in Spain.

Read here.

Korea Bioethanol Workshop 2017

The report includes an overview of the 2017 Bioethanol Workshop and Roundtable in Seoul, Korea.

Read here.