Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 1.2 percent higher but are reversing those gains in early week trading, down 5.5 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week but are down 0.9 percent through Tuesday’s market close to their last quote of 29.83 cents/liter (112.91 cents/gallon).
FOB Houston ethanol prices finished last week 6.3 percent higher but are down 2.1 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 25.95 cents/liter (98.23 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down in early week trading, falling 1.5 percent to 35.17 cents/liter (133.15 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil ethanol spread has widened from last week’s close through Tuesday’s trading and is currently at -9.23 cents/liter (-34.92 cents/gallon).
MTBE prices rose 9.6 percent last week but have erased some of those losses in early week trading, down 10 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 -9.57 cents/liter (-36.22 cents/gallon).
BTX component prices were mixed last week and are continuing that trend through Tuesday’s market close: Benzene is down 2.9 percent while Toluene is up 2.5 percent, and Xylene is up 2.9 percent. The estimated weighted average aromatic price is currently 27.21 cents/liter (103.01 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 1.26 cents/liter (4.78 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly lower last week and have continued that trend in early week trading. RBOB futures are down 12.9 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 24.7 and 27 percent, respectively. WTI futures are 42.8 percent lower at $14.31/barrel while Brent futures are down 28.3 percent to $20.13/barrel, from Friday through Tuesday’s close.
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