Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 3.4 percent higher but gave back those gains in early week trading to fall 3.5 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 59.79 cents/liter (226.33 cents/gallon).
FOB Houston ethanol prices finished last week 0.9 percent higher and are up 0.5 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 55.84 cents/liter (211.39 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down in early week trading, falling 2.9 percent to 59.91 cents/liter (226.79 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 -4.07 cents/liter (-15.41 cents/gallon).
MTBE prices rose 7.3 percent last week and rose further still in early week trading to gain 2.5 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 35.19 cents/liter (133.19 cents/gallon).
BTX component prices were sharply higher last week but were mixed with a firmer undertone through Tuesday’s market close: Benzene was down 1.9 percent while Toluene was up 4.5 percent, and Xylene was up 4.1 percent. The estimated weighted average aromatic price is currently 112.1 cents/liter (424.36 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 56.26 cents/liter (212.97 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly lower last week and are broadly continuing that trend in uneven early week trade. RBOB futures are down 5.5 percent to start the week while FOB prices for 87 CBOB and 87 conventional gasoline are up 2 and down 1.6 percent, respectively. WTI futures are 9.1 percent lower at $92.63/barrel while Brent futures are down 7.3 percent to $100.29/barrel, from Friday to Tuesday’s close.
Liquid tanker rates are 7 percent lower on average this week with offers for Brazil to South Korea seeing the largest gains (up 1 percent). Freight from the U.S. Gulf to the East Coast of Mexico saw the largest declines and is down 29 percent from last week. On average, tanker freight from the U.S. Gulf is down 10 percent this week while freight from the PNW has posted a 5 percent decline. Liquid tanker freight rates from Brazil are up 1 percent, on average, this week. Freight rates across all origins are 135 percent higher than this same week in 2025.
On a cost-and-freight (C&F) basis, offers are divergent this week with higher FOB prices and freight rates boosting offers from the Gulf while the PNW and Brazil are seeing lower FOB values and weaker freight. Prices for ethanol C&F to Central America from the U.S. Gulf are up 0.8 percent this week and are up 16.5 percent from this same week in 2025. Values for PNW ethanol to Southeast Asia average $844.69/MT this week, down 1.6 percent from the prior week but up 17.1 percent year-over-year. That compares to U.S. Gulf to Southeast Asia C&F prices that average $864.17/MT and are up 1.8 percent from last week and are up 24.1 percent year-over-year. C&F prices for Brazilian ethanol to Southeast Asia are down 3.3 percent from last week.
