Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices are lower to start the week with nearby CBOT ethanol futures down 0.4 percent from Friday (when they finished the week down 3.0 percent) while Midwest wholesale rack ethanol prices are down 0.5 percent at 42.19 cents/liter (159.70 cents/gallon).
FOB Houston ethanol prices finished last week 0.7 percent lower and are down 2.7 percent through Tuesday. FOB Houston prices are quoted at 40.379 cents/liter (152.850 cents/gallon), a weekly decrease of 1.142 cents/liter (4.32 cents/gallon).
FOB Santos, Brazil ethanol prices were steady last week, falling only 0.1 percent by Friday’s close. This week, prices are up 1.1 percent at 53.268 cents/liter (201.640 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 jumped 2.4 percent higher last week, and is continuing that trend this week. The spread is 15.2 percent wider from Friday through Tuesday’s trading at -12.889 cents/liter (-48.790 cents/gallon).
MTBE prices fell from six-month highs last week, dropping 1.5 percent by Friday. MTBE FOB U.S. Gulf prices are 1.8 percent lower through Tuesday’s trading and are at a 22.537 cents/liter (85.31 cents/gallon) premium to FOB Houston ethanol.
BTX component prices are mixed to start the week, following last week’s similarly mixed performance. Benzene prices finished last week down 1.4 percent and are up 0.2 percent so far this week. Toluene prices gained 0.6 percent last week and are 1.0 percent lower this week, while xylene prices rose 0.8 percent last week and are 1.7 percent lower this week. The estimated weighted average aromatic price is currently 77.21 cents/liter (292.26 cents/gallon), down 1.3 percent from Friday’s close. The weighted average BTX price is 36.827cents/liter (139.41 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 1.4 percent from Friday’s close while FOB Gulf/Houston prices for 84 octane RBOB and 87 octane CBOB are 1.1 and 1.4 percent lower, respectively. FOB U.S. Gulf gasoline values reached new six-month highs two weeks ago. WTI crude oil futures are down $0.68/barrel from Friday’s close while Brent futures are $1.48/barrel lower.
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