Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 6.1 percent higher but were steady in early week trading and were unchanged through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week and were up 0.9 percent through Tuesday’s market close to their last quote of 71.47 cents/liter (270.56 cents/gallon).
FOB Houston ethanol prices finished last week 2.5 percent higher and are up 0.1 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 67.59 cents/liter (255.86 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are up in early week trading, rising 1.4 percent to 63.08 cents/liter (238.8 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 4.51 cents/liter (17.06 cents/gallon).
MTBE prices rose 8.8 percent last week and extended those gains in early week trading, gaining 6.2 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 18.15 cents/liter (68.69 cents/gallon).
BTX component prices were sharply higher last week and continued that rally through Tuesday’s market close: Benzene was up 4.7 percent while Toluene was up 1.7 percent, and Xylene was up 2.6 percent. The estimated weighted average aromatic price is currently 106.92 cents/liter (404.74 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 39.33 cents/liter (148.88 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week but pared those gains in early week trade. RBOB futures are down 3.9 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 5.7 and 5.4 percent, respectively. WTI futures are 3.6 percent lower at $89.35/barrel while Brent futures are down 4.2 percent to $93.79/barrel, from Friday through Tuesday’s close.
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