Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices were up to close last week but are up down fractionally this week. Nearby CBOT ethanol futures are down 0.4 percent from Friday, in tandem with a falling corn market. Meanwhile, the broader energy complex is up. Midwest wholesale rack ethanol prices were mostly unchanged to end last week and stand unchanged from Friday at 41.44 cents/liter (156.87 cents/gallon).
FOB Houston ethanol prices finished last week 0.8 percent higher and are continuing the trend this week – up 1.7 percent through Tuesday. FOB Houston prices are quoted at 41.125 cents/liter (155.675 cents/gallon), a weekly increase of 0.69 cents/liter (2.61 cents/gallon).
FOB Santos, Brazil ethanol prices rebounded to close last week, ending the week up 1.7 percent. This week, prices are 3.4 percent higher at 50.68 cents/liter (191.845 cents/gallon). This rebound is typical following the sugar cane harvest and heading into the July/August timeframe.
With Santos, Brazil prices up, the FOB Gulf-Santos, Brazil ethanol price spread jumped this week to -9.555 cents/liter (-36.170 cents/gallon).
MTBE prices were up to end last week, and the trend continues this week. MTBE FOB U.S. Gulf prices are 3.7 percent higher through Tuesday’s trading and are now at a 23.744 cents/liter (89.88 cents/gallon) premium to FOB Houston ethanol.
BTX component prices were down across the board to end last week and are steady to down this week. Benzene prices are mostly steady, while Toluene prices are down 3.1 percent and xylene prices are down 3.6 percent through Tuesday’s trading. The estimated weighted average aromatic price is currently 68.97 cents/liter (261.07 cents/gallon), down 3.0 percent from Friday’s close. The weighted average BTX price is 27.842 cents/liter (105.39 cents/gallon) higher than FOB Houston ethanol prices.
Gasoline and petroleum products are up across the board in early week trading. RBOB futures are up 2.1 percent from Friday’s close; FOB Gulf/Houston prices for 84 octane RBOB and 87 octane CBOB are up as well. WTI crude oil futures ended last week down but are up fractionally this week with Brent futures following suit as U.S. inventories declined.
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