Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 3.5 percent lower but are erasing those losses in early week trading, up 3.2 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week but are unchanged through Tuesday’s market close at 70.81 cents/liter (268.03 cents/gallon).
FOB Houston ethanol prices finished last week 4.7 percent lower but are up 1.7 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 66.8 cents/liter (252.87 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are up in early week trading, rising 2.1 percent to 69.29 cents/liter (262.28 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 -2.49 cents/liter (-9.41 cents/gallon).
MTBE prices fell 0.1 percent last week but are higher in early week trading, up 2 percent from Friday’s close through Tuesday’s trading. MTBE’s discount to FOB Houston ethanol has decreased from last week’s report and stands at -6.63 cents/liter (-25.09 cents/gallon).
BTX component prices were sharply lower last week and are extending those losses through Tuesday’s market close: Benzene is down 8.7 percent while Toluene is down 1.1 percent, and Xylene is down 2.2 percent. The estimated weighted average aromatic price is currently 70.23 cents/liter (265.85 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 3.43 cents/liter (12.98 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week and are continuing that trend in early week trading. RBOB futures are up 1.6 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 1.2 and up 0 percent, respectively. WTI futures are 2.1 percent higher at $67.72/barrel while Brent futures are up 2.8 percent to $70.65/barrel, from Friday through Tuesday’s close.
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