Ethanol Market and Pricing Data – September 10, 2019

Ethanol, Fuels and Co-Product Pricing

Market Outlook: U.S. ethanol prices ended last week 3.9 percent lower but are up 2.1 percent through Tuesday’s trading from Friday’s market close. Midwest wholesale rack ethanol prices were lower to end last week and have moved fractionally lower through Tuesday’s market close to the last quote of 40.22 cents/liter (152.25 cents/gallon).

FOB Houston ethanol prices finished last week fractionally higher; prices are down 0.8 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 37.67 cents/liter (142.61 cents/gallon). FOB Santos, Brazil ethanol prices ended last week up 0.6 percent; they are continuing that trend this week, rising 0.3 percent to 50.60 cents/liter (191.55 cents/gallon) through Tuesday’s trading.

The FOB Gulf-Santos, Brazil ethanol spread widened from last week’s close through Tuesday’s trading and is currently at -12.93 cents/liter (-48.94 cents/gallon).

MTBE prices rose 0.7 percent last week and have extended those gains in early week trading, rising 2.8 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has increased from last week and stands at 10.15 cents/liter (38.41 cents/gallon).

BTX component prices were lower last week and are mostly continuing that trend through Tuesday’s trading: Benzene is up 1.1 percent while Toluene is down 0.9 percent and Xylene is down 5.1 percent. The estimated weighted average aromatic price is currently 59.87 cents/liter (226.64 cents/gallon), down 3.1 percent from last Friday’s close. The BTX-Houston ethanol spread narrowed from last week, and the weighted average BTX price remains 22.20 cents/liter (84.03 cents/gallon) higher than the FOB Houston ethanol price.

Gasoline and petroleum products were higher last week and are continuing that trend in early week trading. RBOB futures are up 1.8 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 1.7 and 0.5 percent, respectively. WTI futures are up 2.4 percent to $57.85/barrel while Brent futures are up 1.4 percent to $62.38/barrel, from Friday close through Tuesday’s close.

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