Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 8 percent higher but have reversed that trend in early week trading, down 5 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were higher to end last week and are another 0.9 percent higher through Tuesday’s market close to their last quote of 46.33 cents/liter (178.38 cents/gallon).
FOB Houston ethanol prices finished last week 0.3 percent lower but prices are up 2.9 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 44.02 cents/liter (166.64 cents/gallon). FOB Santos, Brazil ethanol prices were also higher last week; they are continuing that trend this week, rising 1.8 percent to 54.70 cents/liter (207.05 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 -10.68 cents/liter (-40.41 cents/gallon).
MTBE prices rose 1.9 percent last week and have extended those gains in early week trading, rising 1.7 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has increased from last week and stands at 12.30 cents/liter (46.56 cents/gallon).
BTX component prices were lower last week and have continued that trend through Tuesday’s market close: Benzene is down 0.5 percent while Toluene is down 0.9 percent and Xylene is up 0.6 percent. The estimated weighted average aromatic price is currently 64.02 cents/liter (242.33 cents/gallon), even with last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 19.99 cents/liter (75.69 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week but are lower in early week trading. RBOB futures are down 1.2 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 1.9 and 1.7 percent, respectively. WTI futures are down 3.1 percent to $52.99/barrel while Brent futures are down 2.9 percent to $58.74/barrel, from Friday close through Tuesday’s close.
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