Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 0.9 percent lower but took back some of those losses 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 0.4 percent through Tuesday’s market close to their last quote of 60.89 cents/liter (230.51 cents/gallon).
FOB Houston ethanol prices finished last week 1.4 percent higher and are up 0.3 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 59.8 cents/liter (226.36 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are down in early week trading, falling 2.5 percent to 62.68 cents/liter (237.28 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 -2.89 cents/liter (-10.92 cents/gallon).
MTBE prices rose 3.2 percent last week but pared those losses in early week trading to gain 0.9 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 29.12 cents/liter (110.23 cents/gallon).
BTX component prices were higher last week but fell through Tuesday’s market close: Benzene was down 0.3 percent while Toluene was up 0.4 percent, and Xylene was up 0.2 percent. The estimated weighted average aromatic price is currently 97.88 cents/liter (370.53 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 38.09 cents/liter (144.17 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly lower last week but were mixed in early week trade. RBOB futures are down 3.1 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 3.6 and down 2.3 percent, respectively. WTI futures are 6.4 percent lower at $71.79/barrel while Brent futures are down 6.4 percent to $77.45/barrel, from Friday through Tuesday’s close.
