Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 1.9 percent higher and continued that trend in early week trading and rose 0.5 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week but were up 1.5 percent through Tuesday’s market close to their last quote of 61.34 cents/liter (232.18 cents/gallon).
FOB Houston ethanol prices finished last week 1.7 percent lower but are up 2 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 59.99 cents/liter (227.09 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are up in early week trading, rising 0.2 percent to 64.44 cents/liter (243.925 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 -4.45 cents/liter (-16.83 cents/gallon).
MTBE prices fell 0.4 percent last week but reversed that weakness in early week trading to gain 2.7 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 27.62 cents/liter (104.54 cents/gallon).
BTX component prices were mixed last week but were higher through Tuesday’s market close: Benzene was up 0.2 percent while Toluene was up 1.6 percent, and Xylene was up 1.8 percent. The estimated weighted average aromatic price is currently 97.05 cents/liter (367.38 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 37.06 cents/liter (140.29 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week but were mostly lower in early week trade. RBOB futures are down 2.2 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 1.4 and up 2.1 percent, respectively. WTI futures are 2.8 percent lower at $77.48/barrel while Brent futures are down 2.9 percent to $83.34/barrel, from Friday through Tuesday’s close.
