Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 0.6 percent lower but reversed those losses in early week trading and rose 1.1 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week and were up 0.2 percent through Tuesday’s market close to their last quote of 51.43 cents/liter (194.68 cents/gallon).
FOB Houston ethanol prices finished last week 0.5 percent lower but are up 0.1 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 50.83 cents/liter (192.39 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are up in early week trading, rising 0.5 percent to 57.02 cents/liter (215.85 cents/gallon) through Tuesday’s close.
The FOB Gulf-Santos, Brazil ethanol spread has widened from last week’s close through Tuesday’s trading and is currently at -6.2 cents/liter (-23.46 cents/gallon).
MTBE prices rose 5.4 percent last week and extended those gains in early week trading to gain 2.1 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 21.3 cents/liter (80.63 cents/gallon).
BTX component prices were sharply lower last week and were steady/weaker through Tuesday’s market close: Benzene was up 0.1 percent while Toluene was down 1.7 percent, and Xylene was down 2 percent. The estimated weighted average aromatic price is currently 93.05 cents/liter (352.23 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 42.22 cents/liter (159.83 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were lower last week but were mostly firmer in early week trade. RBOB futures are up 1 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 1.1 and unchanged, respectively. WTI futures are 2.7 percent higher at $79.83/barrel while Brent futures are up 3 percent to $84.33/barrel, from Friday through Tuesday’s close.
Liquid tanker rates are 3 percent higher on average this week with offers for the U.S. Gulf to the East Coast of Mexico seeing the largest gains (up 48 percent). Freight from the U.S. Gulf to Saudi Arabia saw the largest declines and is down 7 percent from last week. On average, tanker freight from the U.S. Gulf is up 5 percent this week while freight from the PNW has posted a 1 percent decline. Liquid tanker freight rates from Brazil are up 1 percent, on average, this week. Freight rates across all origins are 10 percent higher than this same week in 2023.
On a cost-and-freight (C&F) basis, offers are mostly higher this week as both freight rates and FOB ethanol offers have climbed higher. Prices for ethanol C&F to Central America from the U.S. Gulf are up 1 percent this week and are down 22.9 percent from this same week in 2023. Values for PNW ethanol to Southeast Asia average $818.06/MT this week, up 0.4 percent from the prior week but down 6.4 percent year-over-year. That compares to U.S. Gulf to Southeast Asia C&F prices that average $767.63/MT and are up 0.1 percent from last week but are down 20.1 percent year-over-year. C&F prices for Brazilian ethanol to Southeast Asia are down 0.4 percent from last week.
