Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices are mixed this week, with early week trading diverging from last week’s trends. March CBOT ethanol futures are up 2 percent from Friday (when they finished the week down 1.3 percent) while Midwest wholesale rack ethanol prices are down 0.3 percent this week at 40.85 cents/liter (154.65 cents/gallon).
FOB Houston ethanol prices finished last week 1.9 percent higher, but that momentum has not yet carried over into this week’s trading with prices down 1.3 percent from Friday’s close. The latest quotes put FOB Houston values at 41.478 cents/liter (157.013 cents/gallon). FOB Santos, Brazil ethanol prices ended last week 0.7 percent lower while this week’s prices have slipped another 0.4 percent. FOB Santos ethanol prices are currently 60.836 cents/liter, or 230.29 cents/gallon.
The FOB Houston-Santos spread ended last week down 6.1 percent at -19.04 cents/liter (-72.074 cents/gallon). Early week trading shows the spread widening 1.7 percent to -19.385 cents/liter (-73.278 cents/gallon) as the five-week contraction in the spread stalls.
MTBE prices are 1.7 percent higher in early week trading at 57.53 cents/liter (217.76 cents/gallon). FOB U.S. Gulf MTBE is now 16.05 cents/liter (60.75 cents/gallon) higher than FOB Houston ethanol.
BTX component prices are lower in early week trading, with benzene prices flat, toluene down 1.9 percent, and xylene down 6.1 percent. The estimated weighted average aromatic price is currently 72.01 cents/liter (272.6/gallon), down 4.2 percent from last week. The weighted average BTX price is 30.536 cents/liter (115.59 cents/gallon) higher than FOB Houston ethanol prices.
Gasoline and petroleum products are higher to start this week. RBOB futures are up 1.5 percent (up 0.74 cents/liter or 2.82 cents/gallon) while 84 octane RBOB and 87 octane CBOB are 0.5 and 1.1 percent higher, respectively. WTI crude oil futures are up 1.23 dollars/barrel from last week while Brent futures have gained 1.3 dollars/barrel.
Price Database: If you are interested in historical price data, please click here.