Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 4 percent higher but pared those gains in early week trading and fell 1.7 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week and were up 0.6 percent through Tuesday’s market close to their last quote of 67.2 cents/liter (254.39 cents/gallon).
FOB Houston ethanol prices finished last week 4.1 percent higher and are up 0.9 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 63.89 cents/liter (241.84 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are down in early week trading, falling 2.6 percent to 63.42 cents/liter (240.075 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 0.47 cents/liter (1.77 cents/gallon).
MTBE prices rose 6.1 percent last week and extended that rally in early week trading to gain 5.6 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 9.05 cents/liter (34.24 cents/gallon).
BTX component prices were mixed last week and followed that same pattern through Tuesday’s market close: Benzene was up 1.9 percent while Toluene was down 1.7 percent, and Xylene was down 3.8 percent. The estimated weighted average aromatic price is currently 97.74 cents/liter (369.98 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 33.85 cents/liter (128.14 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week but are weaker in early week trade. RBOB futures are down 4.7 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 0.4 and 0.8 percent, respectively. WTI futures are 4.1 percent lower at $76.93/barrel while Brent futures are down 4 percent to $82.46/barrel, from Friday through Tuesday’s close.
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