Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 4.1 percent higher and are extending those gains in early week trading, up 4.3 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were lower to end last week but are up 1.6 percent through Tuesday’s market close to their last quote of 64.41 cents/liter (243.8 cents/gallon).
FOB Houston ethanol prices finished last week 1.3 percent lower but are up 4.9 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 63.65 cents/liter (240.94 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are up in early week trading, rising 0.2 percent to 75.92 cents/liter (287.4 cents/gallon) through Tuesday’s trading.
The FOB Gulf-Santos, Brazil ethanol spread has narrowed from last week’s close through Tuesday’s trading and is currently at -12.27 cents/liter (-46.46 cents/gallon).
MTBE prices rose 7.9 percent last week and are continuing that trend in early week trading, up 1 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has decreased from last week’s report and stands at -5.55 cents/liter (-21 cents/gallon).
BTX component prices were mixed last week but are mostly lower through Tuesday’s market close: Benzene is down 0.3 percent while Toluene is down 1.7 percent, and Xylene is up 0.2 percent. The estimated weighted average aromatic price is currently 72.36 cents/liter (273.91 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 8.71 cents/liter (32.98 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week but are weaker in early week trade. RBOB futures are down 1.1 percent to start the week while 84 octane RBOB (Houston) and 87 octane CBOB (U.S. Gulf) gasoline prices are down 0.8 and 0.8 percent, respectively. WTI futures are 1.2 percent lower at $68.48/barrel while Brent futures are down 1.3 percent to $71.69/barrel, from Friday through Tuesday’s close.
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