Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 4 percent higher and continued that strength in early week trading and rose 0.6 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week and were up 1.5 percent through Tuesday’s market close to their last quote of 51.68 cents/liter (195.62 cents/gallon).
FOB Houston ethanol prices finished last week 3.8 percent higher and are up 1.2 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 51.14 cents/liter (193.6 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are up in early week trading, rising 0.1 percent to 57.81 cents/liter (218.85 cents/gallon) through Tuesday’s close.
The FOB Gulf-Santos, Brazil ethanol spread has narrowed from last week’s close through Tuesday’s trading and is currently at -6.67 cents/liter (-25.25 cents/gallon).
MTBE prices fell 6.1 percent last week and were weaker still in early week trading to fall 2.4 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 15.67 cents/liter (59.32 cents/gallon).
BTX component prices were sharply lower last week but were widely mixed through Tuesday’s market close: Benzene was up 3.1 percent while Toluene was down 1 percent, and Xylene was down 1.1 percent. The estimated weighted average aromatic price is currently 96.49 cents/liter (365.26 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 45.35 cents/liter (171.66 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly lower last week and were mostly lower still in early week trade. RBOB futures are down 1.1 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 1.7 and up 0.1 percent, respectively. WTI futures are 0.2 percent higher at $78.45/barrel while Brent futures are down 0.5 percent to $82.38/barrel, from Friday through Tuesday’s close.
Liquid tanker rates are 5 percent lower on average this week with offers for the U.S. Gulf to Saudi Arabia seeing the largest gains (up 9 percent). Freight from the U.S. Gulf to the East Coast of Mexico saw the largest declines and is down 40 percent from last week. On average, tanker freight from the U.S. Gulf is down 6 percent this week while freight from the PNW has posted a 1 percent decline. Liquid tanker freight rates from Brazil are down 3 percent, on average, this week. Freight rates across all origins are 19 percent higher than this same week in 2023.
On a cost-and-freight (C&F) basis, offers are mostly higher this week as higher FOB offers for ethanol offset lower freight rates. Prices for ethanol C&F to Central America from the U.S. Gulf are up 2.2 percent this week and are down 21 percent from this same week in 2023. Values for PNW ethanol to Southeast Asia average $829.53/MT this week, down 0.1 percent from the prior week and down 10.6 percent year-over-year. That compares to U.S. Gulf to Southeast Asia C&F prices that average $773.32/MT and are up 2.6 percent from last week but are down 19.3 percent year-over-year. C&F prices for Brazilian ethanol to Southeast Asia are down 1.2 percent from last week.
