Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week unchanged but strengthened in early week trading and rose 0.8 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week and were up 0.3 percent through Tuesday’s market close to their last quote of 67.63 cents/liter (256.02 cents/gallon).
FOB Houston ethanol prices finished last week 2.9 percent higher and are up 0.6 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 67.02 cents/liter (253.69 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are up in early week trading, rising 2.5 percent to 66.43 cents/liter (251.45 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 0.59 cents/liter (2.24 cents/gallon).
MTBE prices fell 1.9 percent last week and added to those losses 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 19.33 cents/liter (73.17 cents/gallon).
BTX component prices were higher last week but were mixed through Tuesday’s market close: Benzene was down 1.5 percent while Toluene was up 1.1 percent, and Xylene was up 1.3 percent. The estimated weighted average aromatic price is currently 100.5 cents/liter (380.43 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 33.48 cents/liter (126.75 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week and have largely continued that trend in early week trade. RBOB futures are up 1.8 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 2.3 and down 0.3 percent, respectively. WTI futures are 1 percent higher at $81.53/barrel while Brent futures are up 0.4 percent to $85.5/barrel, from Friday through Tuesday’s close.