Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices are higher to start the week with nearby CBOT ethanol futures up 2.0 percent from Friday (when they finished the week down 0.9 percent) while Midwest wholesale rack ethanol prices are up 0.5 percent at 42.01 cents/liter (159.02 cents/gallon).
FOB Houston ethanol prices finished last week 0.5 percent higher and are up 0.3 percent through Tuesday. FOB Houston prices are quoted at 41.226 cents/liter (156.056 cents/gallon), an increase of 0.125 cents/liter (0.74 cents/gallon).
FOB Santos, Brazil ethanol prices rebounded slightly last week as the market ended up 0.9 percent by Friday’s close. This week, prices are up another 0.2 percent at 52.229 cents/liter (197.710 cents/gallon). Seasonally, FOB Brazil ethanol prices rebound following the sugar cane harvest and heading into June/July/August.
The FOB Gulf-Santos, Brazil ethanol price spread continued moving away from its seasonal low last week, widening 2.1 percent to favor U.S.-origin product. The spread is unchanged from Friday through Tuesday’s trading at -11.004 cents/liter (41.654 cents/gallon).
MTBE prices were higher last week (up 2.7 percent by Friday) and established new six-month highs. MTBE FOB U.S. Gulf prices are 1.2 percent higher through Tuesday’s trading and are at a 23.39 cents/liter (88.54 cents/gallon) premium to FOB Houston ethanol.
BTX component prices are steady/higher to start the week, following last week’s sharply higher trade. Benzene prices finished last week up 1.7 percent and are up another 0.1 percent so far this week. Toluene prices gained 4.0 percent last week and are 0.9 percent higher this week, while xylene prices rose 2.7 percent last week and are 0.3 percent higher this week. The estimated weighted average aromatic price is currently 77.53 cents/liter (293.50 cents/gallon), up 3.0 percent from Friday’s close. The weighted average BTX price is 36.309 cents/liter (137.44 cents/gallon) higher than FOB Houston ethanol prices.
Gasoline and petroleum products are higher in early week trading, following last week’s gains. RBOB futures are up 1.4 percent from Friday’s close while FOB Gulf/Houston prices for 84 octane RBOB and 87 octane CBOB are 2.7 and 0.8 percent higher, respectively. FOB U.S. Gulf gasoline values reached new six-month highs this week. WTI crude oil futures are up $0.75/barrel from Friday’s close while Brent futures are $0.89/barrel higher.
Price Database: If you are interested in historical price data, please click here.