Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 4.6 percent lower but are reversing those losses in early week trading, up 1.6 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week but are up 0.8 percent through Tuesday’s market close to their last quote of 37.53 cents/liter (142.08 cents/gallon).
FOB Houston ethanol prices finished last week 4.2 percent lower, and prices are down 0.6 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 36.87 cents/liter (139.58 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down slightly in early week trading, falling 0.6 percent to 53.47 cents/liter (202.40 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil ethanol spread has narrowed from last week’s close through Tuesday’s trading and is currently at -16.59 cents/liter (-62.82 cents/gallon).
MTBE prices fell 3.1 percent last week and have posted further losses in early week trading, down 7 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 10.45 cents/liter (39.57 cents/gallon).
BTX component prices were sharply lower last week but are continuing that trend through Tuesday’s market close: Benzene is down 4.1 percent while Toluene is down 2.3, and Xylene is down 2.3 percent. The estimated weighted average aromatic price is currently 62.28 cents/liter (235.77 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 25.41 cents/liter (96.19 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were lower last week but have reversed that trend in early week trading. RBOB futures are up 3.2 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 3.7 and 4.0 percent, respectively. WTI futures are 5.1 percent higher at $47.05/barrel while Brent futures are up 4.4 percent to $51.89/barrel, from Friday close through Tuesday’s close.
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