Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 3.0 percent lower and are extending those losses in early week trading, down 1.6 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week but are down 0.8 percent through Tuesday’s market close to their last quote of 38.28 cents/liter (144.91 cents/gallon).
FOB Houston ethanol prices finished last week 0.5 percent higher, but prices are down 2.3 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 37.83 cents/liter (143.20 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down slightly in very quiet early week trading, falling 0.5 percent to 54.06 cents/liter (204.65 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 -16.23 cents/liter (-61.45 cents/gallon).
MTBE prices rose 2.5 percent last week but have posted small losses in early week trading, down 0.1 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 14.64 cents/liter (55.42 cents/gallon).
BTX component prices were mixed last week but are mostly lower through Tuesday’s market close: Benzene is down 2.9 percent while Toluene is unchanged, and Xylene is up 0.5 percent. The estimated weighted average aromatic price is currently 64.54 cents/liter (244.30 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 26.71 cents/liter (101.10 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week but have reversed that trend in early week trading. RBOB futures are down 7.2 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 8.3 and 7.9 percent, respectively. WTI futures are 5.9 percent lower at $50.24/barrel while Brent futures are down 6.1 percent to $54.95/barrel, from Friday close through Tuesday’s close.
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