Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 8.3 percent lower and continued that trend in early week trading to end down 3.2 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week and were down 3.1 percent through Tuesday’s market close to their last quote of 61.55 cents/liter (232.99 cents/gallon).
FOB Houston ethanol prices finished last week 10 percent lower and are down 0.7 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 60.25 cents/liter (228.06 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are up in early week trading, rising 0.5 percent to 71.02 cents/liter (268.825 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 -10.77 cents/liter (-40.77 cents/gallon).
MTBE prices fell 0.5 percent last week and posted additional losses in early week trading, down 2.5 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 6.2 cents/liter (23.45 cents/gallon).
BTX component prices were higher last week but were mixed through Tuesday’s market close: Benzene was down 2.4 percent while Toluene was up 1.4 percent, and Xylene was up 3.7 percent. The estimated weighted average aromatic price is currently 77.62 cents/liter (293.83 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 17.38 cents/liter (65.78 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week and extended those gains in early week trade. RBOB futures are up 2.5 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 2.8 and down 1.1 percent, respectively. WTI futures are 2.9 percent higher at $81.22/barrel while Brent futures are up 2.3 percent to $83.65/barrel, from Friday through Tuesday’s close.
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