Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 4 percent higher but retreated in early week trading to fall 2.1 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were stronger to end last week but were up 1.8 percent through Tuesday’s market close to their last quote of 58.68 cents/liter (222.13 cents/gallon).
FOB Houston ethanol prices finished last week 11.5 percent higher and are up 0.9 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 56.24 cents/liter (212.89 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are up in early week trading, rising 0.9 percent to 65.89 cents/liter (249.41 cents/gallon) through Tuesday’s close.
The FOB Gulf-Santos, Brazil ethanol spread has widened from last week’s close through Tuesday’s trading and is currently at -9.65 cents/liter (-36.52 cents/gallon).
MTBE prices rose 40.8 percent last week and extended those gains further in early week trading to gain 6.9 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has increased from last week’s report and stands at 24.37 cents/liter (92.24 cents/gallon).
BTX component prices were sharply higher last week and extended those gains through Tuesday’s market close: Benzene was up 4.7 percent while Toluene was up 6.1 percent, and Xylene was up 6 percent. The estimated weighted average aromatic price is currently 103.78 cents/liter (392.84 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 47.54 cents/liter (179.94 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly higher last week but were mixed in early week trade. RBOB futures are down 1.8 percent to start the week while FOB Prices for 87 CBOB and 87 conventional gasoline are up 0.7 and up 0.1 percent, respectively. WTI futures are 1.2 percent lower at $98.43/barrel while Brent futures are down 3.7 percent to $101.44/barrel, from Friday to Tuesday’s close.
Liquid tanker rates are 3 percent lower on average this week with offers for the U.S. Gulf to Saudi Arabia seeing the largest gains (up 6 percent). Freight from the U.S. Gulf to the East Coast of Mexico saw the largest declines and is down 25 percent from last week. On average, tanker freight from the U.S. Gulf is down 6 percent this week while freight from the PNW has posted a 4 percent decline. Liquid tanker freight rates from Brazil are up 2 percent, on average, this week. Freight rates across all origins are 126 percent higher than this same week in 2025.
On a cost-and-freight (C&F) basis, offers are mostly higher this week as higher FOB offers for ethanol offset lower freight rates. Prices for ethanol C&F to Central America from the U.S. Gulf are up 0.6 percent this week and are up 21.4 percent from this same week in 2025. Values for PNW ethanol to Southeast Asia average $845.63/MT this week, down 0.6 percent from the prior week but up 21.3 percent year-over-year. That compares to U.S. Gulf to Southeast Asia C&F prices that average $877.65/MT and are up 1.3 percent from last week and are up 28.3 percent year-over-year. C&F prices for Brazilian ethanol to Southeast Asia are up 0.5 percent from last week.
