Ethanol, Fuels and Co-Product
Market Outlook: U.S. ethanol prices ended last week 7.4 percent higher and extended those gains in early week trading to rise 4.2 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week but were up 2.4 percent through Tuesday’s market close to their last quote of 75.04 cents/liter (284.06 cents/gallon).
FOB Houston ethanol prices finished last week 3 percent higher and are up 3.1 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 73.69 cents/liter (278.95 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down in early week trading, falling 4.5 percent to 62.68 cents/liter (237.255 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil ethanol spread has widened from last week’s close through Tuesday’s trading and is currently at 11.01 cents/liter (41.7 cents/gallon).
MTBE prices fell 1.8 percent last week and continued that trend in early week trading, falling 3.2 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 14.44 cents/liter (54.66 cents/gallon).
BTX component prices were sharply higher last week but reversed those gains through Tuesday’s market close: Benzene was down 3.9 percent while Toluene was down 1.1 percent, and Xylene was down 3.3 percent. The estimated weighted average aromatic price is currently 97.7 cents/liter (369.82 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 24 cents/liter (90.87 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly lower last week but are mixed in early week trade. RBOB futures are down 2.8 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 4.1 and 4.1 percent, respectively. WTI futures are 3.6 percent higher at $93.74/barrel while Brent futures are up 3.6 percent to $100.18/barrel, from Friday through Tuesday’s close.
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