Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices were up slightly to end last week, recovering losses incurred following the release of USDA’s August WASDE report. This week, nearby CBOT ethanol futures are down fractionally from Friday’s close, pressured by falling corn prices. Midwest wholesale rack ethanol prices were down to end last week and are down from Friday’s close at 39.78 cents/liter (150.57 cents/gallon).
FOB Houston ethanol prices finished last week down 3 percent and are down nearly 1 percent through Tuesday’s trading. FOB Houston prices are quoted at 38.312 cents/liter (145.025 cents/gallon). FOB Santos, Brazil ethanol prices ended last week up sharply, but are down to start this week and stand at 47.743 cents/liter (180.725 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil spread has narrowed from last week’s close through Tuesday’s trading and is currently at -9.431 cents/liter (-35.700 cents/gallon).
MTBE prices were down to end last week, but prices have slowed the downward trend and are mostly unchanged through early week trading. MTBE now holds a 22.771 cents/liter (86.20 cents/gallon) premium to FOB Houston ethanol, with the spread widening from last week.
BTX component prices were down across the board to end last week, and through Tuesday’s trading they are moving within a tight range around unchanged. Benzene prices are down fractionally, Toluene prices are down nearly 1 percent and Xylene prices are up fractionally. The estimated weighted average aromatic price is currently 72.52 cents/liter (274.53 cents/gallon), unchanged from Friday’s close. The BTX-Houston ethanol spread widened, with the weighted average BTX price now 34.211 cents/liter (129.50 cents/gallon) higher than FOB Houston ethanol prices in a continuation of last week’s spread widening.
Gasoline and petroleum products are all up in early week trading. RBOB futures are up 3.8 percent from Friday’s close; FOB Gulf/Houston prices for 84 octane RBOB and 87 octane CBOB are up around 2 percent on average. WTI and Brent crude oil futures ended last week down but have rebounded and moved up through Tuesday’s trading.
Price Database: If you are interested in historical price data, please click here.