Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices are mixed with nearby CBOT ethanol futures unchanged from Friday, rebounding from Monday’s price pressure with Tuesday’s support from the broader energy complex. Midwest wholesale rack ethanol prices are up 0.2 percent at 41.51 cents/liter (157.15 cents/gallon).
FOB Houston ethanol prices finished last week 1.5 percent lower and are up 0.5 percent through Tuesday. FOB Houston prices are quoted at 38.984 cents/liter (147.569 cents/gallon), a weekly decrease of -0.110 cents/liter (-0.42 cents/gallon).
FOB Santos, Brazil ethanol prices stalled amid their seasonal rebound last week, falling 3.7 percent by Friday’s close. This week, prices are 0.6 percent lower at 51.376 cents/liter (194.480 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 narrowed 10 percent last week, based on falling Brazilian FOB values. This week, the spread is 1.6 percent narrower at -12.393 cents/liter (-46.911 cents/gallon).
MTBE prices were lower last week (down 3.6 percent by Friday), their fourth consecutive week lower. MTBE FOB U.S. Gulf prices are 0.6 percent lower through Tuesday’s trading and are at a 20.257 cents/liter (76.68 cents/gallon) premium to FOB Houston ethanol.
BTX component prices are lower to start the week, continuing last week’s trend lower. Benzene prices finished last week down 2.8 percent and are down 0.1 percent so far this week. Toluene prices fell 2.0 percent last week and are 0.5 percent lower this week, while xylene prices dropped 4.5 percent last week and are 1.3 percent lower this week. The estimated weighted average aromatic price is currently 70.92 cents/liter (268.47 cents/gallon), down 0.9 percent from Friday’s close. The weighted average BTX price is 31.937 cents/liter (120.90 cents/gallon) higher than FOB Houston ethanol prices.
Gasoline and petroleum products are steady/higher in early week trading, following last week’s price gains. RBOB futures are up 1.2 percent from Friday’s close while FOB Gulf/Houston prices for 84 octane RBOB and 87 octane CBOB are both unchanged from Friday. FOB U.S. Gulf gasoline values reached new six-month highs four weeks ago. WTI crude oil futures are up $2.62/barrel from Friday’s close while Brent futures are $1.45/barrel higher.
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