Ethanol Market and Pricing Data – August 27, 2019

Ethanol, Fuels and Co-Product Pricing

Market Outlook: U.S. ethanol prices ended last week 2.0 percent higher but are down 1.7 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were steady to end last week and have moved 0.6 percent lower through Tuesday’s market close to the last quote of 41.04 cents/liter (155.37 cents/gallon).

FOB Houston ethanol prices finished last week 1.6 percent lower; prices are up 1.7 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 37.60 cents/liter (142.34 cents/gallon). FOB Santos, Brazil ethanol prices ended last week down 0.9 percent; they are down from Friday’s close at 50.10 cents/liter (189.65 cents/gallon) through Tuesday’s trading.

The FOB Gulf-Santos, Brazil ethanol spread narrowed from last week’s close through Tuesday’s trading and is currently at -12.50 cents/liter (-47.31 cents/gallon).

MTBE prices rose 1.2 percent last week and have extended those gains in early week trading, rising 0.9 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has decreased from last week and stands at 8.23 cents/liter (31.15 cents/gallon).

BTX component prices were mixed last week and remain so through Tuesday’s trading: Benzene is down 1 percent while Toluene is down 0.5 percent and Xylene is up 3.5 percent. The estimated weighted average aromatic price is currently 64.16 cents/liter (242.88 cents/gallon), up 1.8 percent from last Friday’s close. The BTX-Houston ethanol spread widened from last week, and the weighted average BTX price remains 26.56 cents/liter (100.54 cents/gallon) higher than the FOB Houston ethanol price.

Gasoline and petroleum products were mixed last week and are slightly higher in early week trading. RBOB futures are up 0.4 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 0.2 and 0.8 percent, respectively. WTI futures are up 1.4 percent to $54.93/barrel while Brent futures are up 1.2 percent to $60.07/barrel, from Friday close through Tuesday’s close.

 

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