Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week slightly lower (down 0.4 percent) and are down 10.7 percent in early week trading under a continued selloff in commodity markets. Midwest wholesale rack ethanol prices were down 0.8 percent to end last week and have moved 1.6 percent lower through Tuesday’s market close to the last quote of 42.47 cents/liter (160.75 cents/gallon).
FOB Houston ethanol prices finished last week 1.8 percent lower; prices are down 5.9 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 38.26 cents/liter (144.82 cents/gallon). FOB Santos, Brazil ethanol prices ended last week down 2.0 percent; they are down from Friday’s close at 52.52 cents/liter (198.8 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil spread widened from last week’s close through Tuesday’s trading and is currently at -14.26 cents/liter (-53.98 cents/gallon).
MTBE prices were sharply lower to end last week and have continued that trend this week, falling 6.1 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has decreased from last week and stands at 6.37 cents/liter (24.1 cents/gallon).
BTX component prices were lower to end last week and have largely continued that trend through Tuesday’s trading: Benzene is down 1.2 percent, Toluene is down 3.7 percent, while Xylene is up 1.4 percent. The estimated weighted average aromatic price is currently 64.85 cents/liter (245.47 cents/gallon), down 0.4 percent from last Friday’s close. The BTX-Houston ethanol spread widened from last week, and the weighted average BTX price remains 26.59 cents/liter (100.65 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were sharply lower last week but reverse that trend in early week trading. RBOB futures are up 3.1 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 1.6 and 3.0 percent, respectively. WTI futures are up 4.1 percent to $56.74/barrel while Brent futures are up 4.7 percent to $61.30/barrel, from Friday close through Tuesday’s close.
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