Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 2.6 percent lower but are slightly higher in early week trading, up 0.7 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were slightly higher to end last week and have moved 0.3 percent higher through Tuesday’s market close to their last quote of 41.21 cents/liter (155.99 cents/gallon).
FOB Houston ethanol prices finished last week 5.0 percent higher but prices are down 0.4 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 39.86 cents/liter (150.87 cents/gallon). FOB Santos, Brazil ethanol prices were slightly lower last week; they are continuing that trend this week, falling fractionally to 50.11 cents/liter (189.69 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil ethanol spread widened from last week’s close through Tuesday’s trading and is currently at -10.26 cents/liter (-38.82 cents/gallon).
MTBE prices rose 6.2 percent last week and have extended those gains in early week trading, rising 2.1 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has increased from last week and stands at 12.70 cents/liter (48.09 cents/gallon).
BTX component prices were sharply higher last week and are mostly higher through Tuesday’s market close: Benzene is down 0.9 percent while Toluene is up 2.2 percent and Xylene is up 0.2 percent. The estimated weighted average aromatic price is currently 66.33 cents/liter (251.08 cents/gallon), up 0.6 percent from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 26.47 cents/liter (100.21 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were sharply higher last week but have moved higher in early week trading. RBOB futures are down 2.4 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 1.2 and 1.1 percent, respectively. WTI futures are down 2.2 percent to $56.81/barrel while Brent futures are down 1.8 percent to $63.10/barrel, from Friday close through Tuesday’s close.
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