1. Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices are higher this week in line with broader energy markets. March CBOT ethanol futures are up 4.5 percent from last week while Midwest wholesale rack ethanol prices climbed 3.1 percent to 40.82 cents/liter (154.52 cents/gallon).
FOB Houston ethanol prices are up 4.6 percent (1.832 cents/liter or 6.94 cents/gallon) from last week, pulled higher by rising gasoline prices. FOB Santos ethanol prices rose 0.9 percent last week (up 0.534 cents/liter to 61.936 cents/gallon or 2.02 cents/gallon to 234.455 cents/gallon).
In early week trading, the FOB Houston-Santos spread is narrowing further, increasing 1.298 cents/liter (4.92 cents/gallon) to its last quote of -20.544 cents/liter (-77.768 cents/gallon). Friday’s close of -82.27 cents/liter marked the second week of contraction in the spread after setting a new six-month low.
MTBE prices are 3.4 percent lower in early week trading at 56.58 cents/liter (214.19 cents/gallon). FOB U.S. Gulf MTBE is now 15.19 cents/liter (57.5 cents/gallon) higher than FOB Houston ethanol.
BTX component prices are higher in early week trading, with benzene prices up 1.4 percent, toluene up 4.0 percent, and xylene up 6.1 percent. The estimated weighted average aromatic price is currently 75.13 cents/liter (/gallon), up 4.9 percent from last week. The weighted average BTX price is 33.74 cents/liter (127.72 cents/gallon) higher than FOB Houston ethanol prices.
Gasoline and petroleum products are lower to start this week. RBOB futures are down 0.2 percent (down 0.12 cents/liter or 0.49 cents/gallon) while 84 octane RBOB and 87 octane CBOB are 1.7 and 2.1 percent lower, respectively. WTI crude oil futures are up 35 cents/barrel from last week while Brent futures have gained 29 cents/barrel.
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