Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 4.8 percent higher but retreated in early week trading to fall 3.8 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week but were down 1.7 percent through Tuesday’s market close to their last quote of 73.5 cents/liter (278.24 cents/gallon).
FOB Houston ethanol prices finished last week 4 percent higher but are down 1.7 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 71.67 cents/liter (271.32 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are up in early week trading, rising 0.2 percent to 69.58 cents/liter (263.38 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil ethanol spread has narrowed from last week’s close through Tuesday’s trading and is currently at 2.1 cents/liter (7.94 cents/gallon).
MTBE prices rose 3.5 percent last week and extended those gains in early week trading, gaining 1.4 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has increased from last week’s report and stands at 27.95 cents/liter (105.79 cents/gallon).
BTX component prices were sharply lower last week and continued that trend through Tuesday’s market close: Benzene was down 6.2 percent while Toluene was down 1.9 percent, and Xylene was down 2.4 percent. The estimated weighted average aromatic price is currently 113.5 cents/liter (429.63 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 41.82 cents/liter (158.32 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly higher last week but reversed that trend in early week trade. RBOB futures are down 2.4 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 0.7 and 0.3 percent, respectively. WTI futures are 4.8 percent lower at $93.93/barrel while Brent futures are down 3.3 percent to $100.54/barrel, from Friday through Tuesday’s close.
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