Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices are mostly higher this week, adding to last week’s gains. March CBOT ethanol futures are up 0.5 percent from Friday while Midwest wholesale rack ethanol prices are unchanged so far this week at 40.94 cents/liter (154.96 cents/gallon).
FOB Houston ethanol prices finished last week 2.4 percent higher and carried that momentum into this week’s early trading, rising 0.9 percent from Friday’s close. The latest quotes put FOB Houston values at 41.579 cents/liter (157.394 cents/gallon). FOB Santos ethanol prices ended last week steady/slightly lower while this week’s prices have slipped 0.1 percent. FOB Santos ethanol prices are currently 61.444 cents/liter, or 232.59 cents/gallon.
The FOB Houston-Santos spread ended last week essentially unchanged at -20.28 cents/liter (-76.77 cents/gallon). Early week trading shows the spread contracting 2.1 percent to -19.865 cents/liter (-75.196 cents/gallon) as the spread rebounds from late-January’s six-month low.
MTBE prices are 1.7 percent higher in early week trading at 57.94 cents/liter (219.33 cents/gallon). FOB U.S. Gulf MTBE is now 16.36 cents/liter (61.93 cents/gallon) higher than FOB Houston ethanol.
BTX component prices are mixed in early week trading, with benzene prices flat, toluene up 1.2 percent, and xylene up 0.8 percent. The estimated weighted average aromatic price is currently 76.85 cents/liter (290.89/gallon), up 0.8 percent from last week. The weighted average BTX price is 35.27 cents/liter (133.50 cents/gallon) higher than FOB Houston ethanol prices.
Gasoline and petroleum products are also mixed to start this week. RBOB futures are down 0.4 percent (down 0.17 cents/liter or 0.64 cents/gallon) while 84 octane RBOB and 87 octane CBOB are each 0.2 percent lower. WTI crude oil futures are down 61 cents/barrel from last week while Brent futures have lost 76 cents/barrel.
