Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 0.7 percent lower but reversed that trend in early week trading and rose 2.8 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week but were up 2.7 percent through Tuesday’s market close to their last quote of 43.97 cents/liter (166.44 cents/gallon).
FOB Houston ethanol prices finished last week 3.8 percent lower but are up 3.6 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 40.84 cents/liter (154.59 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are up in early week trading, rising 0.9 percent to 53.87 cents/liter (203.935 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 -13.04 cents/liter (-49.35 cents/gallon).
MTBE prices fell 1 percent last week but pared those losses in early week trading to gain 0.8 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 38.96 cents/liter (147.49 cents/gallon).
BTX component prices were mixed last week and were steady/lower through Tuesday’s market close: Benzene was down 1.8 percent while Toluene was down 0.1 percent, and Xylene was unchanged. The estimated weighted average aromatic price is currently 101.19 cents/liter (383.06 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 60.36 cents/liter (228.47 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week but pulled back in early week trade. RBOB futures are down 3.1 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 0.6 and 0.2 percent, respectively. WTI futures are 2.3 percent lower at $78.15/barrel while Brent futures are down 1.7 percent to $82.09/barrel, from Friday through Tuesday’s close.
Liquid tanker rates are 4 percent higher on average this week with offers for the U.S. Gulf to the East Coast of Mexico seeing the largest gains (up 56 percent). Freight from the U.S. Gulf to South Korea saw the largest declines and is down 2 percent from last week. On average, tanker freight from the U.S. Gulf is up 8 percent this week while freight from the PNW has posted a 1 percent decline. Liquid tanker freight rates from Brazil are up 1 percent, on average, this week. Freight rates across all origins are 29 percent higher than this same week in 2023.
On a cost-and-freight (C&F) basis, offers are mostly higher this week as both freight rates and FOB ethanol offers have climbed higher. Prices for ethanol C&F to Central America from the U.S. Gulf are up 3.2 percent this week and are down 27.9 percent from this same week in 2023. Values for PNW ethanol to Southeast Asia average $798.85/MT this week, up 0.6 percent from the prior week but down 11 percent year-over-year. That compares to U.S. Gulf to Southeast Asia C&F prices that average $666.29/MT and are up 1.2 percent from last week but are down 21.3 percent year-over-year. C&F prices for Brazilian ethanol to Southeast Asia are down 0.7 percent from last week.
