Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 1.8 percent higher but reversed that trend in early week trading, down 1.7 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week but are 1.6 percent higher through Tuesday’s market close to their last quote of 44.98 cents/liter (170.28 cents/gallon).
FOB Houston ethanol prices finished last week 5.1 percent lower but prices are up 1.9 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 42.23 cents/liter (159.85 cents/gallon). FOB Santos, Brazil ethanol prices were also higher last week; they are continuing that trend early this week, rising 2.2 percent to 55.82 cents/liter (211.30 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 -13.59 cents/liter (-51.45 cents/gallon).
MTBE prices rose 3.8 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 18.10 cents/liter (68.52 cents/gallon).
BTX component prices were lower last week and have continued that trend through Tuesday’s market close: Benzene is down 2.5 percent while Toluene is down fractionally, and Xylene is down 0.3 percent. The estimated weighted average aromatic price is currently 62.12 cents/liter (235.13 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 19.89 cents/liter (75.28 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week and have mostly continued that trend in early week trading. RBOB futures are up 0.8 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 0.9 and 0.5 percent, respectively. WTI futures are down 2.0 to $55.54/barrel while Brent futures are down 0.9 percent to $61.49/barrel, from Friday close through Tuesday’s close.
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