Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 6.7 percent lower but stabilized in early week trading to rise 0.9 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were weaker to end last week but were down 0.3 percent through Tuesday’s market close to their last quote of 57.56 cents/liter (217.9 cents/gallon).
FOB Houston ethanol prices finished last week 0.8 percent lower and are down 0.9 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 52.72 cents/liter (199.56 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down in early week trading, falling 3 percent to 58.08 cents/liter (219.86 cents/gallon) through Tuesday’s close.
The FOB Gulf-Santos, Brazil ethanol spread has narrowed from last week’s close through Tuesday’s trading and is currently at -5.36 cents/liter (-20.3 cents/gallon).
MTBE prices rose 3.7 percent last week but turned sideways in early week trading to fall 0.3 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 38.49 cents/liter (145.69 cents/gallon).
BTX component prices were sharply higher last week and were firmer still through Tuesday’s market close: Benzene was up 0.3 percent while Toluene was up 3.3 percent, and Xylene was up 3.2 percent. The estimated weighted average aromatic price is currently 117 cents/liter (442.88 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 64.28 cents/liter (243.32 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly higher last week but were unteady amid a broadly firmer tone in early week trade. RBOB futures are up 4.4 percent to start the week while FOB prices for 87 CBOB and 87 conventional gasoline are up 1.5 and down 0.7 percent, respectively. WTI futures are 7.2 percent higher at $102.25/barrel while Brent futures are up 6.3 percent to $107.72/barrel, from Friday to Tuesday’s close.
Liquid tanker rates are 12 percent lower on average this week with offers for Brazil to South Korea seeing the largest gains (up 0.1 percent). Freight from the U.S. Gulf to the West Coast of Central America saw the largest declines and is down 47 percent from last week. On average, tanker freight from the U.S. Gulf is down 19 percent this week while freight from the PNW has posted a 6 percent decline. Liquid tanker freight rates from Brazil are down 1 percent, on average, this week. Freight rates across all origins are 109 percent higher than this same week in 2025.
On a cost-and-freight (C&F) basis, offers are mostly lower this week as both freight rates and FOB ethanol offers have moved below last week’s values. Prices for ethanol C&F to Central America from the U.S. Gulf are down 7.2 percent this week and are up 9 percent from this same week in 2025. Values for PNW ethanol to Southeast Asia average $824.65/MT this week, down 1.8 percent from the prior week but up 18.6 percent year-over-year. That compares to U.S. Gulf to Southeast Asia C&F prices that average $812.07/MT and are down 4.5 percent from last week but are up 19.6 percent year-over-year. C&F prices for Brazilian ethanol to Southeast Asia are down 1.5 percent from last week.
