Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 5.1 percent lower but pared those losses in early week trading to rise 0.4 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week and were down 0 percent through Tuesday’s market close to their last quote of 70.68 cents/liter (267.57 cents/gallon).
FOB Houston ethanol prices finished last week 7.7 percent lower but are up 0.1 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 67.36 cents/liter (254.97 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are down in early week trading, falling 1 percent to 68.79 cents/liter (260.39 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 -1.43 cents/liter (-5.42 cents/gallon).
MTBE prices fell 0.4 percent last week and continued that trend in early week trading, falling 4.6 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 26.05 cents/liter (98.6 cents/gallon)
BTX component prices were sharply lower last week and extended that move through Tuesday’s market close: Benzene was down 10.7 percent while Toluene was down 9.9 percent, and Xylene was down 10.9 percent. The estimated weighted average aromatic price is currently 96.13 cents/liter (363.87 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 28.77 cents/liter (108.9 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were lower last week but reversed that trend in early week trade. RBOB futures are up 4.1 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 0.8 and up 1 percent, respectively. WTI futures are 1.6 percent higher at $90.46/barrel while Brent futures are up 1.5 percent to $96.31/barrel, from Friday through Tuesday’s close.
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