Ethanol Market and Pricing Data – April 3, 2018

Ethanol, Fuels and Co-Product Pricing

Market Outlook: U.S. ethanol prices are mixed to start the week, following last week’s mostly lower performance. Nearby CBOT ethanol futures are down 1.9 percent from Friday (when they finished the week up 1.5 percent) while Midwest wholesale rack ethanol prices are down 0.9 percent from Friday at 40.76 cents/liter (154.30 cents/gallon).

FOB Houston ethanol prices finished last week 1.7 percent lower and are continuing that trend early this week. FOB Houston prices are down 0.9 percent from Friday at 40.402 cents/liter (152.938 cents/gallon), a decrease of 0.347 cents/liter (1.79 cents/gallon).

FOB Santos, Brazil ethanol prices ended last week 1.7 percent lower while this week’s prices have fallen another 0.7 percent. FOB Santos ethanol prices are currently 59.090 cents/liter, or 223.68 cents/gallon.

The FOB Houston-Santos spread narrowed 1.7 percent last week to -18.814 cents/liter (-71.221 cents/gallon) and is continuing that trend again so far this week. Prices show the spread narrowing 0.7 percent to -18.668 cents/liter (-70.743 cents/gallon). This week’s trading puts the spread at the lower end of its recent sideways trading range but still above its six-month low.

MTBE prices rebounded last week and are continuing their upward momentum. Prices rose 3.2 percent by Friday’s close and are up 3.3 percent through Tuesday’s trading. MTBE prices are last quoted at 59.80 cents/liter (226.36 cents/gallon) and are valued at a 19.397 cents/liter premium (73.42 cents/gallon) premium to FOB Houston ethanol.

BTX component prices are mostly higher to start the week, following last week’s sideways trading. Benzene prices finished last week down 1.6 percent and are down another 0.1 percent so far this week. Toluene prices rose 1.7 percent last week and are 2.1 percent higher this week, while xylene prices fell 0.4 percent last week and are 0.6 percent higher this week. The estimated weighted average aromatic price is currently 70.05 cents/liter (265.16 cents/gallon), up 0.9 percent from last week. The weighted average BTX price is 28.647 cents/liter (112.22 cents/gallon) higher than FOB Houston ethanol prices.

Following last week’s losses, gasoline and petroleum products are again lower to start this week. RBOB futures are down 3.2 percent (1.71 cents/liter or 6.46 cents/gallon) while 84 octane RBOB and 87 octane CBOB are 2.2 and 1.6 percent lower, respectively. WTI crude oil futures are down $2.42/barrel from last week while Brent futures have lost $2.09/barrel.

Price Database: If you are interested in historical price data, please click here.