Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices traded lower for most of last week but rallied on Friday to settle unchanged for the week. Through Tuesday’s close, the market is still unchanged as trade is slow to become established in following the three-day holiday weekend. Midwest wholesale rack ethanol prices were lower to end last week but were up 0.3 percent through Tuesday’s market close to their last quote of 61.39 cents/liter (232.4 cents/gallon).
FOB Houston ethanol prices finished last week 0.1 percent higher and are up 1 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 60.35 cents/liter (228.43 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are up in early week trading, rising 1.3 percent to 63.84 cents/liter (241.65 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil ethanol spread has widened from last week’s close through Tuesday’s trading and is currently at -3.49 cents/liter (-13.22 cents/gallon).
MTBE prices rose 1.5 percent last week but retraced some of those gains in early week trading to fall 0.8 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has decreased from last week’s report and stands at 26.07 cents/liter (98.68 cents/gallon).
BTX component prices were sharply higher last week but were mixed through Tuesday’s market close: Benzene was up 0.1 percent while Toluene was down 1.5 percent, and Xylene was down 1.4 percent. The estimated weighted average aromatic price is currently 94.85 cents/liter (359.05 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 34.51 cents/liter (130.62 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were lower last week but strengthened in early week trade. RBOB futures are up 0.6 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 0.1 percent and unchanged, respectively. WTI futures are 0.5 percent lower at $76.13/barrel while Brent futures are up 0.1 percent to $83.05/barrel, from Friday through Tuesday’s close.
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