Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices are lower to start the week following last week’s mixed performance. Nearby CBOT ethanol futures are down 2.2 percent from Friday (when they finished the week down 1.3 percent) while Midwest wholesale rack ethanol prices are down 1.0 percent from Friday at 41.05 cents/liter (155.39 cents/gallon).
FOB Houston ethanol prices finished last week 1.5 percent lower and are now down 1.2 percent from Friday’s close. The latest quotes put FOB Houston values at 41.8 cents/liter (158.2 cents/gallon).
FOB Santos, Brazil ethanol prices ended last week 0.3 percent lower while this week’s prices have fallen another 0.4 percent. FOB Santos ethanol prices are currently 60.8 cents/liter, or 230.05 cents/gallon.
The FOB Houston-Santos spread narrowed 4.3 percent last week to -18.71 cents/liter (-70.8 cents/gallon), continuing the present narrowing trend. Early week trading shows the spread widening 1.6 percent to -19.0 cents/liter (-72.0 cents/gallon).
MTBE prices fell sharply last week last week, finishing 2.8 percent lower by Friday’s close. So far this week, MTBE prices are 1.0 percent lower at 55.2 cents/liter (208.97 cents/gallon) in a continuation of last week’s selling pressure. Gulf MTBE prices are now 13.43 cents/liter (50.54 cents/gallon) higher than FOB Houston ethanol.
BTX component prices are lower to start the week, following last week’s pricing weakness. Benzene prices finished last week down 0.9 percent and are down another 1.4 percent so far this week. Toluene prices slipped 2.2 percent last week and are down another 2.3 percent this week, while xylene prices fell 0.3 percent and 1.7 percent last week and this week, respectively. The estimated weighted average aromatic price is currently 69.61 cents/liter (263.5 cents/gallon), down 1.8 percent from last week. The weighted average BTX price is 27.84 cents/liter (105.4 cents/gallon) higher than FOB Houston ethanol prices.
Gasoline and petroleum products are mixed to start this week. RBOB futures are up 1.1 percent (0.56 cents/liter or 2.13 cents/gallon) while 84 octane RBOB and 87 octane CBOB are 1.1 and 1.2 percent lower, respectively. WTI crude oil futures are up $1.17/barrel from last week while Brent futures have gained $1.18/barrel.
