Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 6.5 percent lower but have reversed that trend in early week trading, up 3.9 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week but have moved 2.7 percent lower through Tuesday’s market close to their last quote of 44.67 cents/liter (169.10 cents/gallon).
FOB Houston ethanol prices finished last week 6.2 percent higher but prices are down 3.7 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 41.34 cents/liter (156.50 cents/gallon). FOB Santos, Brazil ethanol prices were also higher last week; they are continuing that trend this week, rising 2.5 percent to 53.32 cents/liter (201.85 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 -11.98 cents/liter (-45.35 cents/gallon).
MTBE prices rose 3.4 percent last week and have extended those gains in early week trading, rising 1.2 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has increased from last week and stands at 13.67 cents/liter (51.75 cents/gallon).
BTX component prices were broadly lower last week and have continued that trend through Tuesday’s market close: Benzene is down 2.4 percent while Toluene is down 2.0 percent and Xylene is down 1.5 percent. The estimated weighted average aromatic price is currently 64.05 cents/liter (242.44 cents/gallon), down 0.6 percent from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 22.70 cents/liter (85.94 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were sharply lower last week and are mixed in early week trading. RBOB futures are up 0.5 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 0.1 and 0.1 percent, respectively. WTI futures are down 0.3 percent to $52.63/barrel while Brent futures are also down 0.3 percent to $58.17/barrel, from Friday close through Tuesday’s close.
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