Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 5.9 percent higher and are extending those gains in early week trading, up 0.9 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week and are up 0.2 percent through Tuesday’s market close to their last quote of 35.41 cents/liter (134.05 cents/gallon).
FOB Houston ethanol prices finished last week 3.4 percent higher and are up 2.2 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 34.08 cents/liter (129.02 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are up in early week trading, rising 8.8 percent to 36.75 cents/liter (139.115 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 -2.67 cents/liter (-10.1 cents/gallon).
MTBE prices rose 13.7 percent last week and have reversed some of those gains in early week trading, down 0.9 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 -8.51 cents/liter (-32.2 cents/gallon).
BTX component prices were mixed last week and are continuing that trend through Tuesday’s market close: Benzene is down 4.1 percent while Toluene is down 0.7 percent, and Xylene is up 0.1 percent. The estimated weighted average aromatic price is currently 32.37 cents/liter (122.54 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is -1.71 cents/liter (-6.48 cents/gallon) lower than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week and have continued that trend in early week trading. RBOB futures are up 3.5 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 4.7 and up 5 percent, respectively. WTI futures are 5.2 percent higher at $37.32/barrel while Brent futures are up 5.4 percent to $39.88/barrel, from Friday through Tuesday’s close.
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