Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 2.8 percent lower and are down 0.1 percent in early week trading. Midwest wholesale rack ethanol prices were down 4.9 percent to end last week and have moved 0.6 percent lower through Tuesday’s market close to the last quote of 40.88 cents/liter (154.76 cents/gallon).
FOB Houston ethanol prices finished last week 7.6 percent lower; prices are down 3.5 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 36.27 cents/liter (137.29 cents/gallon). FOB Santos, Brazil ethanol prices ended last week down 0.6 percent; they are down from Friday’s close at 51.78 cents/liter (196.01 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil ethanol spread widened from last week’s close through Tuesday’s trading and is currently at -15.51 cents/liter (-58.72 cents/gallon).
MTBE prices were sharply lower to end last week but have erased some of those losses in early week trading, rising 3.9 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has decreased from last week and stands at 8.9 cents/liter (33.7 cents/gallon).
BTX component prices were mostly lower to end last week and have largely continued that trend through Tuesday’s trading: Benzene is up 3.9 percent while Toluene is down 3.6 percent and Xylene is down 3.4 percent. The estimated weighted average aromatic price is currently 63.13 cents/liter (238.99 cents/gallon), down 2.5 percent from last Friday’s close. The BTX-Houston ethanol spread narrowed from last week, and the weighted average BTX price remains 26.87 cents/liter (101.70 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products finished lower last week but have reversed that trend in early week trading. RBOB futures are up 3.0 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are each 1.7 percent higher. WTI futures are up 3.7 percent to $56.88/barrel while Brent futures are up 4.1 percent to $61.05/barrel, from Friday close through Tuesday’s close.
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