Ethanol Market and Pricing Data – June 19, 2018

Ethanol, Fuels and Co-Product Pricing

Market Outlook: U.S. ethanol prices are lower for the second straight week with nearby CBOT ethanol futures down 1.7 percent from Friday (when they finished the week down 0.6 percent). Midwest wholesale rack ethanol prices are down 0.6 percent at 41.45 cents/liter (156.91 cents/gallon).

FOB Houston ethanol prices finished last week 1.6 percent lower and are down 2.2 percent through Tuesday. FOB Houston prices are quoted at 38.801 cents/liter (146.879 cents/gallon), a weekly decrease of 0.89 cents/liter (3.37 cents/gallon).

FOB Santos, Brazil ethanol prices continued their seasonal rebound last week, rising 1.0 percent by Friday’s close. This week, prices are up 3.4 percent lower at 51.86 cents/liter (196.31 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 widened 9.3 percent last week to favor U.S.-origin product. This week, the spread is 6.7 percent narrower at -13.058 cents/liter (-49.451 cents/gallon).

MTBE prices were lower last week (down 1.0 percent by Friday), their third week lower after establishing six-month highs. MTBE FOB U.S. Gulf prices are 2.7 percent lower through Tuesday’s trading and are at a 21.295 cents/liter (80.61 cents/gallon) premium to FOB Houston ethanol.

BTX component prices are lower to start the week, following last week’s mixed trade. Benzene prices finished last week steady and are down 2.4 percent so far this week. Toluene prices fell 3.9 percent last week and are 1.6 percent lower this week, while xylene prices dropped 3.3 percent last week and are 3.7 percent higher this week. The estimated weighted average aromatic price is currently 72.03 cents/liter (272.67 cents/gallon), down 2.9 percent from Friday’s close. The weighted average BTX price is 33.23 cents/liter (125.79 cents/gallon) higher than FOB Houston ethanol prices.

Gasoline and petroleum products are steady/higher in early week trading, following last week’s losses. RBOB futures are up 0.6 percent from Friday’s close while FOB Gulf/Houston prices for 84 octane RBOB and 87 octane CBOB are 0.7 percent and 1.1 percent higher, respectively. FOB U.S. Gulf gasoline values reached new six-month highs three weeks ago. WTI crude oil futures are up $0.21/barrel from Friday’s close while Brent futures are $1.88/barrel higher.

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