Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices fell to end last week following the release of USDA’s WASDE report that triggered a selloff in corn. However, nearby CBOT ethanol futures are up slightly from Friday’s close, with support from rebounding corn prices and strengthening gasoline markets. Midwest wholesale rack ethanol prices were down to end last week and are down from Friday at 40.23 cents/liter (152.29 cents/gallon).
FOB Houston ethanol prices finished last week down nearly 4 percent and are down 2.7 percent through Tuesday’s trading. FOB Houston prices are quoted at 38.79 cents/liter (146.84 cents/gallon). FOB Santos, Brazil ethanol prices ended last week down hard, but have gained back much of the loss and stand at 48.723 cents/liter (184.435 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil spread swung sharply lower in response to last week’s price activity but rebounded this week and is currently at -9.932 cents/liter (-37.598 cents/gallon).
MTBE prices were down to end last week, and that trend continues this week with MTBE FOB U.S. Gulf prices 1.3 percent lower through Tuesday’s trading. MTBE now holds a 22.311 cents/liter (84.45 cents/gallon) premium to FOB Houston ethanol.
BTX component prices were up to end last week but are down slightly across the board this week. Benzene prices are down fractionally, Toluene prices are down 1.1 percent and Xylene prices are down 0.4 percent through Tuesday’s trading. The estimated weighted average aromatic price is currently 72.65 cents/liter (275.00 cents/gallon), down 0.6 percent from Friday’s close. The BTX-Houston ethanol spread widened, with the weighted average BTX price now 33.856 cents/liter (128.16 cents/gallon) higher than FOB Houston ethanol prices.
Gasoline and petroleum products are down a bit in early week trading. RBOB futures are down fractionally from Friday’s close as are FOB Gulf/Houston prices for 84 octane RBOB and 87 octane CBOB. WTI and Brent crude oil futures ended last week down and continue that trend through Tuesday’s trading.
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