Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week essentially unchanged but were weaker in early week trading and fell 3.7 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week and were down 0.9 percent through Tuesday’s market close to their last quote of 69.43 cents/liter (262.82 cents/gallon).
FOB Houston ethanol prices finished last week 0.5 percent lower and are down 1.7 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 66.8 cents/liter (252.86 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are up in early week trading, rising 0.2 percent to 65.74 cents/liter (248.865 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 1.06 cents/liter (4 cents/gallon).
MTBE prices fell 9.1 percent last week and extended those losses in early week trading, falling 10.9 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 4.24 cents/liter (16.04 cents/gallon).
BTX component prices were sharply lower last week and continued that trend through Tuesday’s market close: Benzene was down 5.2 percent while Toluene was down 0.7 percent, and Xylene was down 3.4 percent. The estimated weighted average aromatic price is currently 110.3 cents/liter (417.52 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 43.5 cents/liter (164.66 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly lower last week but were mixed in early week trade. RBOB futures are up 0.2 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 2.1 and 4 percent, respectively. WTI futures are 2.5 percent higher at $78.2/barrel while Brent futures are up 1.5 percent to $84.97/barrel, from Friday through Tuesday’s close.
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