Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 6 percent lower and are extending those losses in early week trading, down 8.2 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week and are down 3.2 percent through Tuesday’s market close to their last quote of 32.49 cents/liter (122.99 cents/gallon).
FOB Houston ethanol prices finished last week 15 percent lower and are down 15.7 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 25.14 cents/liter (95.18 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down in early week trading, falling 7 percent to 40.44 cents/liter (153.1 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil ethanol spread has widened from last week’s close through Tuesday’s trading and is currently at -15.3 cents/liter (57.92 cents/gallon).
MTBE prices fell 29 percent last week and have posted further losses in early week trading, down 23.1 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has decreased from last week’s report and stands at -2.97 cents/liter (-11.24 cents/gallon).
BTX component prices were sharply lower last week and are continuing that trend through Tuesday’s market close: Benzene is down 27.8 percent while Toluene is down 18.9 percent, and Xylene is down 20.3 percent. The estimated weighted average aromatic price is currently 31.62 cents/liter (119.69 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 6.48 cents/liter (24.51 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were lower last week and have mostly continued that trend in early week trading. RBOB futures are down 26.7 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 23.2 and 28 percent, respectively. WTI futures are 6.1 percent higher at $24.01/barrel while Brent futures are up 4.4 percent to $30.27/barrel, from Friday through Tuesday’s close.
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