Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 4.3 percent lower and extended those losses in early week trading and fell 4 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week and were down 3.4 percent through Tuesday’s market close to their last quote of 63.4 cents/liter (239.98 cents/gallon).
FOB Houston ethanol prices finished last week 1.2 percent lower and are down 2.9 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 60.73 cents/liter (229.89 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down in early week trading, falling 0.8 percent to 62.49 cents/liter (236.55 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 -1.76 cents/liter (-6.66 cents/gallon).
MTBE prices rose 7.5 percent last week and extended that rally in early week trading to gain 1.7 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 14.77 cents/liter (55.91 cents/gallon).
BTX component prices were sharply lower last week and followed that same pattern through Tuesday’s market close: Benzene was down 3.9 percent while Toluene was down 3.7 percent, and Xylene was down 4.1 percent. The estimated weighted average aromatic price is currently 92.04 cents/liter (348.41 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 31.31 cents/liter (118.52 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were lower last week but are stronger in early week trade. RBOB futures are up 3.7 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 2.8 and up 1.3 percent, respectively. WTI futures are 1.8 percent higher at $75.12/barrel while Brent futures are up 1.4 percent to $79.65/barrel, from Friday through Tuesday’s close.
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