Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 4.3 percent lower but pared back some of those losses in early week trading and rose 1.5 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week but were up 2 percent through Tuesday’s market close to their last quote of 57.14 cents/liter (216.29 cents/gallon).
FOB Houston ethanol prices finished last week 0.5 percent lower but are up 0.9 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 56.44 cents/liter (213.66 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down in early week trading, falling 5.2 percent to 67.48 cents/liter (255.455 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil ethanol spread has narrowed from last week’s close through Tuesday’s trading and is currently at -11.04 cents/liter (-41.79 cents/gallon).
MTBE prices rose 5.1 percent last week and have continued that trend in early week trading, up 5.3 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has increased from last week’s report and stands at 21.11 cents/liter (79.92 cents/gallon).
BTX component prices were higher last week and extended those gains through Tuesday’s market close: Benzene was up 1.2 percent while Toluene was up 0.8 percent, and Xylene was up 1.8 percent. The estimated weighted average aromatic price is currently 86.46 cents/liter (327.29 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 30.02 cents/liter (113.63 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week but have retreated in early week trade. RBOB futures are down 1.9 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 2.2 and 2.2 percent, respectively. WTI futures are 3.8 percent lower at $88.8/barrel while Brent futures are down 3.1 percent to $90.34/barrel, from Friday through Tuesday’s close.
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