Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 1.7 percent lower but are erasing some of those losses in early week trading, up 0.4 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week but are up 1 percent through Tuesday’s market close to their last quote of 65.97 cents/liter (249.74 cents/gallon).
FOB Houston ethanol prices finished last week 0.6 percent lower and are down 0.7 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 63.97 cents/liter (242.15 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down in early week trading, falling 0.8 percent to 69.89 cents/liter (264.565 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil ethanol spread has narrowed from last week’s close through Tuesday’s trading and is currently at -5.92 cents/liter (-22.41 cents/gallon).
MTBE prices fell 3.4 percent last week and are weaker still in early week trading, down 0.9 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 -7.35 cents/liter (-27.84 cents/gallon).
BTX component prices were sharply lower last week but are mixed through Tuesday’s market close: Benzene is up 1.4 percent while Toluene is down 2.3 percent, and Xylene is up 0.3 percent. The estimated weighted average aromatic price is currently 67.3 cents/liter (254.74 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 3.33 cents/liter (12.59 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly lower last week but are finding strength in early week trading. RBOB futures are up 2.6 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 1.1 and up 1.5 percent, respectively. WTI futures are 1.7 percent higher at $72.85/barrel while Brent futures are up 1.6 percent to $74.66/barrel, from Friday through Tuesday’s close.
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