Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 1.7 percent higher and rallied further in early week trading to rise 2.8 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were stronger to end last week but were up 2.4 percent through Tuesday’s market close to their last quote of 57.99 cents/liter (219.53 cents/gallon).
FOB Houston ethanol prices finished last week 5.6 percent lower but are up 2.9 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 54.12 cents/liter (204.86 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are down in early week trading, falling 1.2 percent to 61.86 cents/liter (234.18 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 -7.75 cents/liter (-29.32 cents/gallon).
MTBE prices rose 16.3 percent last week but stabilized in early week trading to gain 0.2 percent from Friday’s close through Tuesday’s trading. MTBE’s premium to FOB Houston ethanol has decreased from last week’s report and stands at 33.79 cents/liter (127.92 cents/gallon).
BTX component prices were sharply higher last week but were mixed through Tuesday’s market close: Benzene was down 1 percent while Toluene was up 1.6 percent, and Xylene was up 1 percent. The estimated weighted average aromatic price is currently 107.24 cents/liter (405.94 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 53.12 cents/liter (201.08 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly higher last week and are firmer so far in early week trade. RBOB futures are up 5.3 percent to start the week while FOB prices for 87 CBOB and 87 conventional gasoline are up 2.4 and down 1.8 percent, respectively. WTI futures are 9.1 percent higher at $103.01/barrel while Brent futures are up 1.7 percent to $107.17/barrel, from Friday to Tuesday’s close.
Liquid tanker rates are 2 percent lower on average this week with offers for Brazil to China 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 29 percent from last week. On average, tanker freight from the U.S. Gulf is down 5 percent this week while freight from the PNW has posted a 2 percent decline. Liquid tanker freight rates from Brazil are up 4 percent, on average, this week. Freight rates across all origins are 155 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 2 percent this week and are up 16.3 percent from this same week in 2025. Values for PNW ethanol to Southeast Asia average $844.31/MT this week, up 3.1 percent from the prior week and up 17.6 percent year-over-year. That compares to U.S. Gulf to Southeast Asia C&F prices that average $845./MT and are up 2.2 percent from last week and are up 22.7 percent year-over-year. C&F prices for Brazilian ethanol to Southeast Asia are down 3.6 percent from last week.
