Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 2.3 percent higher and extended those gains in early week trading and rose 0.9 percent 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 62.14 cents/liter (235.22 cents/gallon).
FOB Houston ethanol prices finished last week 1.7 percent higher and are up 1.8 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 61.71 cents/liter (233.59 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down in early week trading, falling 0.3 percent to 62.75 cents/liter (237.55 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 -1.05 cents/liter (-3.96 cents/gallon).
MTBE prices rose 0.8 percent last week but pared those gains in early week trading to fall 0.2 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has decreased from last week’s report and stands at 26.91 cents/liter (101.86 cents/gallon).
BTX component prices were sharply lower last week and were weaker still through Tuesday’s market close: Benzene was down 2.1 percent while Toluene was down 1.2 percent, and Xylene was down 1.2 percent. The estimated weighted average aromatic price is currently 95.54 cents/liter (361.67 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 33.84 cents/liter (128.08 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly lower last week but have rallied in early week trade. RBOB futures are up 1.5 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 0.8 and up 0.8 percent, respectively. WTI futures are 4.4 percent higher at $69.67/barrel while Brent futures are up 2.5 percent to $74.81/barrel, from Friday through Tuesday’s close.
