Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 6.2 percent higher and are extending those gains in early week trading, up 1.7 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week but are down 0.7 percent through Tuesday’s market close to their last quote of 96.38 cents/liter (364.83 cents/gallon).
FOB Houston ethanol prices finished last week 7 percent higher at Friday’s close and are steady through Tuesday’s trading. FOB Houston ethanol prices are quoted at 93.36 cents/liter (353.4 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down in early week trading, falling 4.7 percent to 79.35 cents/liter (300.39 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil ethanol spread has widened from last week’s close through Tuesday’s trading and is currently at 14 cents/liter (53.01 cents/gallon).
MTBE prices rose 2.2 percent last week but are weaker in early week trading, down 1.3 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 -25.23 cents/liter (-95.51 cents/gallon).
BTX component prices were mixed last week and have moved lower in early week trade: Benzene is down 1.5 percent while Toluene is down 2.4 percent, and Xylene is down 5.8 percent. The estimated weighted average aromatic price is currently 74.65 cents/liter (282.58 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is -18.71 cents/liter (-70.82 cents/gallon) lower than the FOB Houston ethanol price.
Gasoline and petroleum products were lower last week but are rallying in early week trade. RBOB futures are up 4.7 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 7.6 and up 7.5 percent, respectively. WTI futures are 3.4 percent higher at $78.55/barrel while Brent futures are up 4.2 percent to $82.21/barrel, from Friday through Tuesday’s close.
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