Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week up 1.8 percent but are down 0.6 percent in early week trading. Midwest wholesale rack ethanol prices were down 1.1 percent to end last week and have moved 0.4 percent higher through Tuesday’s market close and were last quoted at 43.80 cents/liter (165.79 cents/gallon).
FOB Houston ethanol prices finished last week 1.3 percent lower; prices are up 0.3 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 41.701 cents/liter (157.856 cents/gallon). FOB Santos, Brazil ethanol prices ended last week up 1.0 percent; they are down slightly from Friday’s close at 53.904 cents/liter (204.05 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil spread narrowed from last week’s close through Tuesday’s trading and is currently at -12.203 cents/liter (-46.194 cents/gallon).
MTBE prices were lower to end last week but have reversed 1.1 percent to start this week. MTBE’s premium to FOB Houston ethanol has increased from last week and stands at 9.95 cents/liter (37.68 cents/gallon).
BTX component prices were lower to end last week and have continued that trend through Tuesday’s trading: Benzene is down 2.1 percent, Toluene is down 1.1 percent, and Xylene is down 4.1 percent. The estimated weighted average aromatic price is currently 67.51 cents/liter (255.56 cents/gallon), down 3.0 percent from last Friday’s close. The BTX-Houston ethanol spread narrowed from last week, and the weighted average BTX price remains 25.81 cents/liter (97.70 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week and mostly firmer in early-week trading. RBOB futures are up 1.4 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 1.2 percent and down 0.1 percent, respectively. WTI futures are up 3.5 percent to $58.18/barrel while Brent futures are up 2.0 percent to $64.63/barrel, from Friday’s close through Tuesday’s trading.
