Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 5.7 percent higher but are sharply lower in early week trading, down 11 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week but are down 0.3 percent through Tuesday’s market close to their last quote of 101.77 cents/liter (385.23 cents/gallon).
FOB Houston ethanol prices finished last week 5.7 percent higher but are down 3.2 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 95.5 cents/liter (361.51 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down in early week trading, falling 3.6 percent to 76 cents/liter (287.68 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 19.5 cents/liter (73.83 cents/gallon).
MTBE prices fell 0.2 percent last week and are extending those losses in early week trading, down 0.5 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has increased from last week’s report and stands at -26.97 cents/liter (-102.11 cents/gallon).
BTX component prices were sharply lower last week and are continuing that trend through Tuesday’s market close: Benzene is down 1.7 percent while Toluene is down 2 percent, and Xylene is down 2 percent. The estimated weighted average aromatic price is currently 72.37 cents/liter (273.94 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is -23.13 cents/liter (-87.57 cents/gallon) lower than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly lower last week and are extending that selloff in early week trade. RBOB futures are down 4.4 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 13.1 and 9.9 percent, respectively. WTI futures are 2.9 percent lower at $66.18/barrel while Brent futures are down 2 percent to $70.19/barrel, from Friday through Tuesday’s close.
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