Ethanol Market and Pricing Data – October 7, 2020

Ethanol, Fuels and Co-Product Pricing

Market Outlook: U.S. ethanol prices ended last week 2.5 percent higher but are reversing that trend in early week trading, down 1.4 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week but are down 0.6 percent through Tuesday’s market close to their last quote of 40.09 cents/liter (151.76 cents/gallon).

FOB Houston ethanol prices finished last week 1.1 percent higher and are up 0.7 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 39.97 cents/liter (151.29 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are up in early week trading, rising 0.8 percent to 43.12 cents/liter (163.235 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 -3.16 cents/liter (-11.95 cents/gallon).

MTBE prices rose 1.5 percent last week but are reversing those gains in early week trading, down 0.6 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 -5.08 cents/liter (-19.22 cents/gallon).

BTX component prices were sharply lower last week and are continuing that trend through Tuesday’s market close: Benzene is down 0.5 percent while Toluene is down 1.5 percent, and Xylene is down 5.7 percent. The estimated weighted average aromatic price is currently 40.86 cents/liter (154.66 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 0.89 cents/liter (3.37 cents/gallon) higher than the FOB Houston ethanol price.

Gasoline and petroleum products were lower last week but are reversing that trend in early week trading. RBOB futures are up 8.1 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 10.2 and up 7 percent, respectively. WTI futures are 7.4 percent higher at $39.8/barrel while Brent futures are up 8.6 percent to $42.65/barrel, from Friday through Tuesday’s close.

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