Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 1.8 percent lower and continued that trend in early week trading and fell 2.3 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week and were down 1.2 percent through Tuesday’s market close to their last quote of 60.46 cents/liter (228.85 cents/gallon).
FOB Houston ethanol prices finished last week 0.2 percent higher but are down 1.4 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 59.01 cents/liter (223.36 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are steady in early week trading at 63.65 cents/liter (240.96 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 -4.65 cents/liter (-17.6 cents/gallon).
MTBE prices fell 1.7 percent last week and extended those losses in early week trading to fall 1.1 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has decreased from last week’s report and stands at 25.71 cents/liter (97.34 cents/gallon).
BTX component prices were sharply lower last week but were mixed through Tuesday’s market close: Benzene was down 2.9 percent while Toluene was up 1 percent, and Xylene was up 0.9 percent. The estimated weighted average aromatic price is currently 95.27 cents/liter (360.63 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 36.26 cents/liter (137.26 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were lower last week but strengthened in early week trade. RBOB futures are up 2.3 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 0.1 and up 0.4 percent, respectively. WTI futures are 1 percent higher at $77.05/barrel while Brent futures are up 0.4 percent to $83.12/barrel, from Friday through Tuesday’s close.
