Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 6.7 percent higher and were firmer still in early week trading to rise 0.3 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were stronger to end last week but were up 0.1 percent through Tuesday’s market close to their last quote of 56.56 cents/liter (214.12 cents/gallon).
FOB Houston ethanol prices finished last week 16.2 percent higher and are up 0.2 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 54.54 cents/liter (206.45 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are up in early week trading, rising 1.5 percent to 64.84 cents/liter (245.46 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 -10.31 cents/liter (-39.01 cents/gallon).
MTBE prices rose 25.2 percent last week and extended those gains further in early week trading to gain 9.9 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 18.57 cents/liter (70.29 cents/gallon).
BTX component prices were sharply higher last week and extended those gains through Tuesday’s market close: Benzene was up 6.9 percent while Toluene was up 7.8 percent, and Xylene was up 8.9 percent. The estimated weighted average aromatic price is currently 95.14 cents/liter (360.13 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 40.6 cents/liter (153.68 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week but were mixed in volatile in early week trade. RBOB futures are down 9.9 percent to start the week while FOB Prices for 87 CBOB and 87 conventional gasoline are up 3.5 and up 0.1 percent, respectively. WTI futures are 11.1 percent lower at $87.32/barrel while Brent futures are down 11.1 percent to $94.64/barrel, from Friday to Tuesday’s close.
Liquid tanker rates are 11 percent higher on average this week with offers for the U.S. Gulf to South Brazil seeing the largest gains (up 34 percent). Freight from Brazil to South Korea saw the largest declines and is down 2 percent from last week. On average, tanker freight from the U.S. Gulf is up 17 percent this week while freight from the PNW has posted a 9 percent increase. Liquid tanker freight rates from Brazil are down 1 percent, on average, this week. Freight rates across all origins are 148 percent higher than this same week in 2025.
On a cost-and-freight (C&F) basis, offers are mostly higher this week as both freight rates and FOB ethanol offers have climbed higher. Prices for ethanol C&F to Central America from the U.S. Gulf are up 5.8 percent this week and are up 20.6 percent from this same week in 2025. Values for PNW ethanol to Southeast Asia average $847.05/MT this week, up 2.7 percent from the prior week and up 17.9 percent year-over-year. That compares to U.S. Gulf to Southeast Asia C&F prices that average $860.75/MT and are up 4.2 percent from last week and are up 25.6 percent year-over-year. C&F prices for Brazilian ethanol to Southeast Asia are up 0.4 percent from last week.
