Ethanol Market and Pricing Data - August 29, 2017

1. Ethanol, Fuels and Co-Product Pricing

Gallons
Liters

Market Outlook: U.S. ethanol prices are lower this week as Hurricane Harvey takes its economic toll. The storm is temporarily shutting down refineries along the Gulf, which is boosting gasoline prices (RBOB futures are up $0.197/gallon, $0.4723/liter, this week). In response, ethanol futures are lower to boost blenders’ margins and encourage production. CBOT ethanol futures fell 5.9 cents/gallon this week (1.56 cents/liter) while FOB Houston cash ethanol fell 3.25 cents/gallon (0.859 cents/liter). 

The shutdown of U.S. Gulf refineries sparked a sharp rally in “aromatic” octane enhancer prices (i.e., prices for benzene, toluene, and xylene) as concerns over tightening supplies mounted. For the week, FOB U.S. Gulf benzene prices rose $0.155 cents/gallon ($0.04/liter), or nearly 6 percent. Similarly, toluene prices rose 4.7 percent and those for xylene jumped 7.8 percent. The weighted average “BTX” value increased $0.159/gallon ($0.04/liter) to $2.394 – an increase of 6.7 percent from the prior week. 

The increase in “aromatic” octane enhancer prices increases the competitiveness of ethanol for use in gasoline blends. 

Brazilian ethanol prices moved 2 percent higher last week, with FOB Santos prices gaining 0.983 cents/liter to their last quote of 55.983 cents/liter. The weakness in the U.S. market, combined with Brazil’s higher pricing, moved the FOB Houston-FOB Santos, Brazil spread to further favor U.S. product. The spread was last quoted at -13.914 cents/liter, after moving 14 percent lower this week. 

Lower corn prices have greatly benefited ethanol production margins, which are estimated at their highest levels of 2017. Margins for a dry-mill plant in Iowa increased 8 cents per gallon (2.1 cents/liter) this week to just shy of 40 cents/gallon (10.6 cents/liter). Corn futures are continuing to retreat, which will keep margins, and production, near current levels this week. 

Petroleum markets are generally higher this week with Brent crude oil futures up $0.06/gallon ($0.0159/liter) and Hurricane Harvey pushing WTI crude oil futures down $1.33/gallon ($0.3513/liter). RBOB gasoline futures are higher as mentioned above and FOB U.S. Gulf CBOB and RBOB cash prices up $0.11-0.20/gallon ($0.029-0.05/liter). 

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

2. Tariff Rates

HS Codes
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

Australia Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Australia.

Read here.

Brazil Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Brazil.

Read here.

Canada Biofuels Annual 2016 (GAIN)

This report provides an overview on biofuel use in Canada.

Read here.

China Biofuels Annual 2016 (GAIN)

This report provides an overview on biofuel use in China.

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-28 Member states. It supplements the EU-28 Biofuels Annual Report.

Read here.

India Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in India.

Read here.

Indonesia Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Indonesia.

Read here.

Japan Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Japan.

Read here.

Korea Bioethanol Workshop 2017

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

Read here.

Peru Bioefuels Annual 2016 (GAIN)

This report provides an overview on biofuel use in Peru.

Read here.

Philippines Biofuels Annual 2016 (GAIN)

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

Read here.

Romania Biofuels Market Overview 2017 (GAIN)

This report provides an overview on biofuel use in Romania.

Read here.

Russia Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Russia.

Read here.

Thailand Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Thailand.

Read here.

Spain Biodiesel and Renewable Diesel Overview 2017 (GAIN)

This report provides an overview on biofuel use in Spain.

Read here.

Spain Bioethanol Sector Overview 2017 (GAIN)

This report provides an overview on bioethanol use in Spain.

Read here.