Ethanol Market and Pricing Data - August 2, 2017

1. Ethanol, Fuels and Co-Product Pricing

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Market Outlook: U.S. ethanol prices are higher this week as weekly production and stocks fell. Wholesale rack prices rose in the Midwest, with Kansas and Nebraska leading the way. This supported ethanol futures, which gained 2.4 cents/gallon (0.63 cents/liter) while FOB Houston ethanol prices climbed 3.2 cents/gallon (0.85 cents/liter). Traders are reporting markets have been lightly traded in recent days due to a typical summer decline in trading activity. 

Gasoline prices are higher this week across paper and physical markets. Cash RBOB prices are $0.10/gallon ($0.028/liter) higher while RBOB futures rose $0.092/gallon ($0.0242/liter). 

USDA reported that 436.7 million bushels of corn were used for fuel alcohol in June, up from 427.6 million last year. The report reflects growing demand for ethanol, especially in the export market. U.S. ethanol exports are up 23 percent YTD in 2017. 

Brazil’s tax hike and stronger ethanol demand pushed prices higher this week. After raising taxes on ethanol (see below), ethanol prices rose 4.7 percent in Sao Paulo and FOB Santos prices jumped 0.82 cents/liter to $0.523. Brazil’s ethanol/gasoline price ratio is 67.8 percent versus 66.4 percent last week. Currently, ethanol FOB Santos, Brazil is $0.397/gallon ($0.1048/liter) more expensive than ethanol FOB Houston. Brazil’s market action increased this premium this week. 

Brazil: The Brazilian government decided July 28 to reduce a federal tax on ethanol known as PIS/Cofins by 8.55 centavos per liter. The PIS/Cofins tax had just been increased on both gasoline and ethanol a week earlier but producers argue the additional levy on ethanol was illegal. This will make the tax on gasoline over 200 percent higher than the one applied to ethanol and will favor consumption of the latter fuel. 

India: India’s transport minister recently petitioned his finance counterpart for a reduction in the 18 percent goods and services tax recently applied to biofuels. The tax reduction is in effort to increase biofuels use in the country and reduce fossil fuel imports. The transportation minister also requested a GST reduction in hybrid vehicles.

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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.

USDA GAIN Reports

Title

Description

Link

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.