Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices were down to end last week, and that trend continued this week. Nearby CBOT ethanol futures are down 2.2 percent from Friday, with corn up fractionally. Midwest wholesale rack ethanol prices were mostly unchanged to end last week and are down fractionally from Friday at 41.19 cents/liter (155.92 cents/gallon).
FOB Houston ethanol prices finished last week nearly 1 percent higher but are down 3.2 percent through Tuesday’s trading. FOB Houston prices are quoted at 40.139 cents/liter (151.944 cents/gallon). Recent U.S. data show ethanol exports for the first half of this year, up by one-third from the same point last year and forecast to surpass last year’s export volumes.
FOB Santos, Brazil ethanol prices ended last week strong up slightly but are down slightly to start this week at 50.747 cents/liter (192.100 cents/gallon).
The FOB Gulf-Santos, Brazil spread widened significantly this week to -10.608 cents/liter (-40.156 cents/gallon).
MTBE prices were down to end last week, and that trend continues this week with MTBE FOB U.S. Gulf prices 0.9 percent lower through Tuesday’s trading and now at a 22.215 cents/liter (84.09 cents/gallon) premium to FOB Houston ethanol.
BTX component prices were up to end last week and are up to start this week as well. Benzene prices are up 1.3 percent, Toluene prices are up 1.1 percent and Xylene prices are up 1.9 percent through Tuesday’s trading. The estimated weighted average aromatic price is currently 73.21 cents/liter (277.11 cents/gallon), up 1.6 percent from Friday’s close. The BTX-Houston ethanol spread widened, with the weighted average BTX price now at 33.066 cents/liter (125.17 cents/gallon) higher than FOB Houston ethanol prices.
Gasoline and petroleum products mixed in early week trading. RBOB futures are down slightly from Friday’s close; meanwhile, FOB Gulf/Houston prices for 84 octane RBOB and 87 octane CBOB are up slightly. WTI and Brent crude oil futures ended last week down and are mixed to start this week.
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