Ethanol Market and Pricing Data – May 29, 2018

Ethanol, Fuels and Co-Product Pricing

Market Outlook: U.S. ethanol prices are mixed to start the week with nearby CBOT ethanol futures down 1.6 percent from Friday (when they finished the week up 2.4 percent) while Midwest wholesale rack ethanol prices are up 0.2 percent at 42.61 cents/liter (161.31 cents/gallon).

FOB Houston ethanol prices finished last week 1.8 percent higher and are up 0.4 percent through Tuesday. FOB Houston prices are quoted at 41.980 cents/liter (158.913 cents/gallon), a weekly increase of 0.155 cents/liter (0.59 cents/gallon).

FOB Santos, Brazil ethanol prices continued their seasonal rebound last week, rising 1.3 percent by Friday’s close. This week, prices are down 0.4 percent at 52.20 cents/liter (198.810 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 was essentially steady last week, narrowing 0.4 percent. The spread is 3.5 percent narrower from Friday through Tuesday’s trading at -10.54 cents/liter (38.98 cents/gallon).

MTBE prices were higher last week (up 1.9 percent by Friday) and established new six-month highs. MTBE FOB U.S. Gulf prices are 0.6 percent lower through Tuesday’s trading and are at a 22.692 cents/liter (85.90 cents/gallon) premium to FOB Houston ethanol.

BTX component prices are mixed/lower to start the week, following last week’s sharply higher trade. Benzene prices finished last week up 0.1 percent and are down 1.3 percent so far this week. Toluene prices gained 1.1 percent last week and are 0.3 percent higher this week, while xylene prices rose 0.3 percent last week and are 0.9 percent higher this week. The estimated weighted average aromatic price is currently 78.16 cents/liter (295.88 cents/gallon), up 0.4 percent from Friday’s close. The weighted average BTX price is 36.18 cents/liter (136.97 cents/gallon) higher than FOB Houston ethanol prices.

Gasoline and petroleum products are lower in early week trading, following last week’s losses. RBOB futures are down 0.7 percent from Friday’s close while FOB Gulf/Houston prices for 84 octane RBOB and 87 octane CBOB are 2.4 and 2.1 percent lower, respectively. FOB U.S. Gulf gasoline values reached new six-month highs last week. WTI crude oil futures are down $0.77/barrel from Friday’s close while Brent futures are $0.32/barrel lower.

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