Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 2.4 percent higher but are paring those gains in early week trading, down 1.2 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week but are down 0.2 percent through Tuesday’s market close to their last quote of 72.31 cents/liter (273.74 cents/gallon).
FOB Houston ethanol prices finished last week 3.1 percent lower and are down 2.6 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 67.08 cents/liter (253.93 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are down in early week trading, falling 0.7 percent to 67.64 cents/liter (256.035 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 -0.56 cents/liter (-2.11 cents/gallon).
MTBE prices fell 0.1 percent last week and are weaker in early week trading, down 0.9 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has increased from last week’s report and stands at -8.57 cents/liter (-32.44 cents/gallon).
BTX component prices were mixed last week but are sharply lower through Tuesday’s market close: Benzene is down 9.5 percent while Toluene is down 1.5 percent, and Xylene is down 1.1 percent. The estimated weighted average aromatic price is currently 73.59 cents/liter (278.55 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 6.51 cents/liter (24.62 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were lower last week but are higher in early week trading. RBOB futures are up 2.4 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 2 and up 2.4 percent, respectively. WTI futures are 3.9 percent higher at $66.07/barrel while Brent futures are up 3 percent to $68.44/barrel, from Friday through Tuesday’s close.
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