Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week essentially unchanged but were weaker in early week trading and fell 1.1 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week but were down 0.5 percent through Tuesday’s market close to their last quote of 55.2 cents/liter (208.97 cents/gallon).
FOB Houston ethanol prices finished last week 2.1 percent lower and are down 0.4 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 52.92 cents/liter (200.33 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down in early week trading, falling 2.8 percent to 55.49 cents/liter (210.05 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 -2.57 cents/liter (-9.73 cents/gallon).
MTBE prices rose 1.5 percent last week and extended that reversal in early week trading to gain 2.5 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 13.67 cents/liter (51.73 cents/gallon).
BTX component prices were sharply lower last week and continued that trend through Tuesday’s market close: Benzene was down 1.1 percent while Toluene was up 0.4 percent, and Xylene was up 0.4 percent. The estimated weighted average aromatic price is currently 85.73 cents/liter (324.51 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 32.81 cents/liter (124.18 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were lower last week but changed directions and rallied in early week trade. RBOB futures are up 2.3 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 4 and up 3.3 percent, respectively. WTI futures are 2.3 percent higher at $77.77/barrel while Brent futures are up 2.3 percent to $82.46/barrel, from Friday through Tuesday’s close.
Liquid tanker rates are 2 percent higher on average this week with offers for the U.S. Gulf to the East Coast of Mexico seeing the largest gains (up 16 percent). Freight from the U.S. Gulf to Saudi Arabia saw the largest declines and is down 1 percent from last week. On average, tanker freight from the U.S. Gulf is up 2 percent this week while freight from the PNW has posted a 1 percent increase. Liquid tanker freight rates from Brazil are up 4 percent, on average, this week. Freight rates across all origins are 11 percent lower than this same week in 2022.
On a cost-and-freight (C&F) basis, offers are mostly lower this week as both freight rates and FOB ethanol offers have moved below last week’s values. Prices for ethanol C&F to Central America from the U.S. Gulf are down 0.8 percent this week and are down 4.3 percent from this same week in 2022. Values for PNW ethanol to Southeast Asia average $793.66/MT this week, down 1 percent from the prior week and down 3.6 percent year-over-year. That compares to U.S. Gulf to Southeast Asia C&F prices that average $931.4/MT and are down 0.8 percent from last week and are down 5.3 percent year-over-year. C&F prices for Brazilian ethanol to Southeast Asia are up 1 percent from last week.
