Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices are lower to start the week with nearby CBOT ethanol futures down 0.2 percent from Friday (when they finished the week down 0.6 percent) while Midwest wholesale rack ethanol prices are up 0.6 percent at 41.81 cents/liter (158.26 cents/gallon).
FOB Houston ethanol prices finished last week 2.8 percent lower and are down 1.8 percent through Tuesday. FOB Houston prices are quoted at 39.616 cents/liter (149.963 cents/gallon), a weekly decrease of 0.73 cents/liter (2.76 cents/gallon).
FOB Santos, Brazil ethanol prices continued their seasonal rebound last week, rising 0.8 percent by Friday’s close. This week, prices are up 1.8 percent at 54.116 cents/liter (204.850 cents/gallon). Seasonally, FOB Brazil ethanol prices rebound following the sugar cane harvest and heading into June/July/August.
The FOB Gulf-Santos, Brazil ethanol price spread move sharply higher last week, widening 14.4 percent to favor U.S.-origin product more heavily. The spread is 13.3 percent wider from Friday through Tuesday’s trading at -14.5 cents/liter (-54.888 cents/gallon).
MTBE prices were lower last week (down 2.6 percent by Friday), their second week lower after establishing six-month highs. MTBE FOB U.S. Gulf prices are 0.9 percent lower through Tuesday’s trading and are at a 22.219 cents/liter (84.11 cents/gallon) premium to FOB Houston ethanol.
BTX component prices are mixed/lower to start the week, following last week’s sharply higher trade. Benzene prices finished last week steady and are up 0.2 percent so far this week. Toluene prices fell 2.2 percent last week and are 3.6 percent lower this week, while xylene prices dropped 2.6 percent last week and are 2.5 percent higher this week. The estimated weighted average aromatic price is currently 74.61 cents/liter (282.44 cents/gallon), down 2.5 percent from Friday’s close. The weighted average BTX price is 34.997 cents/liter (132.48 cents/gallon) higher than FOB Houston ethanol prices.
Gasoline and petroleum products are lower in early week trading, following last week’s losses. RBOB futures are down 1.2 percent from Friday’s close while FOB Gulf/Houston prices for 84 octane RBOB and 87 octane CBOB are each 0.9 percent lower. FOB U.S. Gulf gasoline values reached new six-month highs two weeks ago. WTI crude oil futures are up $0.62/barrel from Friday’s close while Brent futures are $1.01/barrel lower.
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