Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 4 percent lower and were steady/lower in early week trading, which allowed them fall 0.3 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were weaker to end last week but were up 0.1 percent through Tuesday’s market close to their last quote of 57.04 cents/liter (215.93 cents/gallon).
FOB Houston ethanol prices finished last week 2.8 percent higher but are down 0.5 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 53.38 cents/liter (202.07 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are down in early week trading, falling 1.3 percent to 65.39 cents/liter (247.54 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 -12.01 cents/liter (-45.48 cents/gallon).
MTBE prices rose 50.4 percent last week and extended those gains further in early week trading to gain 1.7 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 36.29 cents/liter (137.37 cents/gallon).
BTX component prices were sharply higher last week but were mixed through Tuesday’s market close: Benzene was up 5.5 percent while Toluene was down 0.7 percent, and Xylene was down 0.9 percent. The estimated weighted average aromatic price is currently 107.46 cents/liter (406.79 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 54.08 cents/liter (204.72 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly lower last week and are down again so far this week after volatile early-week trade. RBOB futures are down 0.3 percent to start the week while FOB prices for 87 CBOB and 87 conventional gasoline are down 1.2 and 0.2 percent, respectively. WTI futures are 5.3 percent lower at $91.44/barrel while Brent futures are up 0.1 percent to $95.3/barrel, from Friday to Tuesday’s close.
Liquid tanker rates are 12 percent higher on average this week with offers for Brazil to China seeing the largest gains (up 51 percent). Freight from the U.S. Gulf to Europe saw the largest declines and is down 2 percent from last week. On average, tanker freight from the U.S. Gulf is up 7 percent this week while freight from the PNW has posted a 5 percent increase. Liquid tanker freight rates from Brazil are up 34 percent, on average, this week. Freight rates across all origins are 176 percent higher than this same week in 2025.
On a cost-and-freight (C&F) basis, offers are mostly lower this week as lower FOB offers for ethanol have offset gains in liquid tanker freight rates. Prices for ethanol C&F to Central America from the U.S. Gulf are down 0.3 percent this week and are up 18.8 percent from this same week in 2025. Values for PNW ethanol to Southeast Asia average $822.79/MT this week, down 0.9 percent from the prior week but up 14.8 percent year-over-year. That compares to U.S. Gulf to Southeast Asia C&F prices that average $846.34/MT and are down 0.8 percent from last week but are up 22.5 percent year-over-year. C&F prices for Brazilian ethanol to Southeast Asia are up 2.2 percent from last week.
