Ethanol Market and Pricing Data – August 6, 2019

Ethanol, Fuels and Co-Product Pricing

Market Outlook: U.S. ethanol prices ended last week down 2.5 percent and are down 1.9 percent in early week trading under a broad selloff in commodity markets. Midwest wholesale rack ethanol prices were down 0.9 percent to end last week and have moved 0.1 percent lower through Tuesday’s market close to the last quote of 43.37 cents/liter (164.19 cents/gallon).

FOB Houston ethanol prices finished last week 0.4 percent lower; prices are down 1.8 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 40.659 cents/liter (153.913 cents/gallon). FOB Santos, Brazil ethanol prices ended last week down 1.1 percent; they are down from Friday’s close at 52.557 cents/liter (195.95 cents/gallon) through Tuesday’s trading.

The FOB Gulf-Santos, Brazil spread narrowed from last week’s close through Tuesday’s trading and is currently at -11.989 cents/liter (-45.038 cents/gallon).

MTBE prices were higher to end last week but have moved 3.9 percent lower to start this week. MTBE’s premium to FOB Houston ethanol has decreased from last week and stands at 8.84 cents/liter (33.46 cents/gallon).

BTX component prices were lower to end last week and have continued that trend through Tuesday’s trading: Benzene is down 2.4 percent, Toluene is down 1.8 percent, and Xylene is down 2.3 percent. The estimated weighted average aromatic price is currently 65.91 cents/liter (249.51 cents/gallon), down 2.2 percent from last Friday’s close. The BTX-Houston ethanol spread narrowed from last week, and the weighted average BTX price remains 25.25 cents/liter (95.59 cents/gallon) higher than the FOB Houston ethanol price.

Gasoline and petroleum products were lower last week and have continued that trend in early-week trading. RBOB futures are down 5.3 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 5.6 and 4.3 percent, respectively. WTI futures are down 3.6 percent to $53.63/barrel while Brent futures are down 5.3 percent to $58.63/barrel, from Friday close through Tuesday’s close.