Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 3.5 percent lower and dropped further in early week trading and fell 100 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week and were down 4.1 percent through Tuesday’s market close to their last quote of 74.1 cents/liter (280.51 cents/gallon).
FOB Houston ethanol prices finished last week 6 percent lower and are down 5.7 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 68.3 cents/liter (258.53 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are down in early week trading, falling 34.3 percent to 41.54 cents/liter (157.25 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 26.75 cents/liter (101.28 cents/gallon).
MTBE prices rose 1.2 percent last week but pared those gains in early week trading, falling 2.6 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 20.37 cents/liter (77.11 cents/gallon).
BTX component prices were mixed last week but rallied through Tuesday’s market close: Benzene was up 7.1 percent while Toluene was up 0 percent, and Xylene was up 0.4 percent. The estimated weighted average aromatic price is currently 116.28 cents/liter (440.17 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 47.98 cents/liter (181.64 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were lower last week and extended those losses in early week trade. RBOB futures are down 3.5 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 3.7 and 5.7 percent, respectively. WTI futures are 2.4 percent lower at $86.81/barrel while Brent futures are down 2.4 percent to $93.73/barrel, from Friday through Tuesday’s close.
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