Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 4.8 percent higher but are down 2.8 percent after the first day of post-Labor Day trading. Midwest wholesale rack ethanol prices were steady to end last week and have moved fractionally lower through Tuesday’s market close to the last quote of 41.12 cents/liter (155.64 cents/gallon).
FOB Houston ethanol prices finished last week 2.6 percent higher; prices are up 0.8 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 38.26 cents/liter (144.83 cents/gallon). FOB Santos, Brazil ethanol prices ended last week down 3.4 percent; they are down from Friday’s close at 49.97 cents/liter (189.18 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 -11.72 cents/liter (-44.35 cents/gallon).
MTBE prices rose 2 percent last week and have extended those gains in early week trading, rising 0.7 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has increased slightly from last week and stands at 8.42 cents/liter (31.89 cents/gallon).
BTX component prices were mixed last week and remain so through Tuesday’s trading: Benzene is down 1.3 percent while Toluene is up 1.1 percent and Xylene is down 1.2 percent. The estimated weighted average aromatic price is currently 64.02 cents/liter (242.35 cents/gallon), down 0.6 percent from last Friday’s close. The BTX-Houston ethanol spread narrowed from last week, and the weighted average BTX price remains 25.76 cents/liter (97.53 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mixed last week but are sharply lower higher in early week trading. RBOB futures are down 3.9 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 4.6 and 0.1 percent, respectively. WTI futures are down 2.1 percent to $53.94/barrel while Brent futures are down 1.8 percent to $53.23/barrel, from Friday close through Tuesday’s close.
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