Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 2.6 percent higher and are continuing that trend in early week trading, up 2.8 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week and have moved 7 percent higher through Tuesday’s market close to their last quote of 45.12 cents/liter (170.78 cents/gallon).
FOB Houston ethanol prices finished last week 1.0 percent higher but prices are up 7.3 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 43.36 cents/liter (164.12 cents/gallon). FOB Santos, Brazil ethanol prices were slightly higher last week; they are continuing that trend this week, rising 3 percent to 51.91cents/liter (196.50 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil ethanol spread narrowed from last week’s close through Tuesday’s trading and is currently at -8.55 cents/liter (-32.38 cents/gallon).
MTBE prices rose 2.1 percent last week and have extended those gains in early week trading, rising 2.0 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has increased from last week and stands at 10.27 cents/liter (38.87 cents/gallon).
BTX component prices were mixed last week but are mostly lower through Tuesday’s market close: Benzene is down 1.4 percent while Toluene is up 0.1 percent and Xylene is down 0.7 percent. The estimated weighted average aromatic price is currently 65.56 cents/liter (248.17 cents/gallon), down 0.6 percent from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 22.20 cents/liter (84.05 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were sharply lower last week and are continuing that trend in early week trading. RBOB futures are down 2.0 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 3.2 and 2.7 percent, respectively. WTI futures are down 4.1 percent to $53.62/barrel while Brent futures are down 2.9 percent to $59.25/barrel, from Friday close through Tuesday’s close.
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