Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 2.1 percent lower and weakened further in early week trading to fall 2.5 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week but were up 0.1 percent through Tuesday’s market close to their last quote of 76.97 cents/liter (291.37 cents/gallon).
FOB Houston ethanol prices finished last week 3.8 percent lower but are up 0.1 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 75.42 cents/liter (285.49 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down in early week trading, falling 0.8 percent to 71.98 cents/liter (272.485 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 3.44 cents/liter (13.01 cents/gallon).
MTBE prices fell 7.2 percent last week and extended those losses in early week trading, falling 4.2 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 49.96 cents/liter (189.13 cents/gallon).
BTX component prices were sharply lower last week and continued that trend through Tuesday’s market close: Benzene was down 2.2 percent while Toluene was down 2.6 percent, and Xylene was down 5.6 percent. The estimated weighted average aromatic price is currently 166.77 cents/liter (631.3 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 91.35 cents/liter (345.8 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly higher last week but were mixed in early week trade. RBOB futures are up 1.3 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 1.7 and 1 percent, respectively. WTI futures are 3.8 percent higher at $111.76/barrel while Brent futures are up 4.5 percent to $114.03/barrel, from Friday through Tuesday’s close.
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