Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week unchanged but moved higher in early week trading to rise 2.2 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week and were up 1 percent through Tuesday’s market close to their last quote of 77.09 cents/liter (291.8 cents/gallon).
FOB Houston ethanol prices finished last week 0.5 percent higher but are down 0 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 76.1 cents/liter (288.06 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are up in early week trading, rising 2.1 percent to 78.95 cents/liter (298.87 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 -2.86 cents/liter (-10.81 cents/gallon).
MTBE prices rose 7.3 percent last week and were higher still in early week trading, gaining 7.6 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 45.28 cents/liter (171.41 cents/gallon).
BTX component prices were sharply higher last week and continued that trend through Tuesday’s market close: Benzene was up 8.7 percent while Toluene was up 4.6 percent, and Xylene was up 4.6 percent. The estimated weighted average aromatic price is currently 130.62 cents/liter (494.44 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 54.52 cents/liter (206.38 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly higher last week but reversed that trend in early week trade. RBOB futures are down 0.4 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 1.1 and 2.1 percent, respectively. WTI futures are 1.7 percent higher at $112.4/barrel while Brent futures are up 1.1 percent to $112.75/barrel, from Friday through Tuesday’s close.
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