Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 3.5 percent lower and extended those losses in early week trading to fall 2.2 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week and were down 1.1 percent through Tuesday’s market close to their last quote of 74.87 cents/liter (283.43 cents/gallon).
FOB Houston ethanol prices finished last week 3.3 percent lower and are down 1.4 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 74.11 cents/liter (280.54 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down in early week trading, falling 6.1 percent to 79.73 cents/liter (301.8 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 -5.62 cents/liter (-21.26 cents/gallon).
MTBE prices rose 2.2 percent last week and were higher in early week trading, gaining 4.5 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 29.09 cents/liter (110.14 cents/gallon).
BTX component prices were mixed last week and continued that trend through Tuesday’s market close: Benzene was down 0.7 percent while Toluene was up 1.9 percent, and Xylene was up 3.8 percent. The estimated weighted average aromatic price is currently 111.36 cents/liter (421.53 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 37.25 cents/liter (140.99 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week and extended that trend in early week trade. RBOB futures are up 1.7 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 1.8 and up 2.3 percent, respectively. WTI futures are 2.2 percent lower at $102.41/barrel while Brent futures are down 1.1 percent to $105.96/barrel, from Friday through Tuesday’s close.
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