Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 3 percent higher and have continued that trend early this week, rising 1.6 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were slightly higher to end last week and have moved 1.5 percent higher through Tuesday’s market close to their last quote of 41.16 cents/liter (155.81 cents/gallon).
FOB Houston ethanol prices finished last week fractionally higher but prices are up 5.3 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 40.13 cents/liter (151.89 cents/gallon). FOB Santos, Brazil ethanol prices ended last week unchanged; they are continuing that trend this week, falling fractionally to 50.39 cents/liter (190.75 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 -10.26 cents/liter (-38.86 cents/gallon).
MTBE prices rose 3.9 percent last week and have extended those gains in early week trading, rising 4.8 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has increased from last week and stands at 10.66 cents/liter (40.34 cents/gallon).
BTX component prices were mostly higher last week and sharply higher through Tuesday’s market close: Benzene is up 1.8 percent while Toluene is up 6.7 percent and Xylene is up 6.8 percent. The estimated weighted average aromatic price is currently 64.86 cents/liter (245.54 cents/gallon), up 6.1 percent from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price remains 24.74 cents/liter (93.65 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were lower last week but have moved higher in early week trading. RBOB futures are up 7.9 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are up 7.0 and 12.2 percent, respectively. WTI futures are up 8.2 percent to $59.34/barrel while Brent futures are up 6.5 percent to $64.16/barrel, from Friday close through Tuesday’s close.
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