Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 1.7 percent higher but pulled back slightly in early week trading to fall 0.8 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were stronger to end last week but were down 0.3 percent through Tuesday’s market close to their last quote of 48.38 cents/liter (183.15 cents/gallon).
FOB Houston ethanol prices finished last week 9.2 percent higher but are down 0.6 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 46.22 cents/liter (174.98 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are down in early week trading, falling 0.6 percent to 64.68 cents/liter (244.84 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 -18.46 cents/liter (-69.86 cents/gallon).
MTBE prices rose 13.5 percent last week and were slightly firmer in early week trading to gain 1.1 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 6.75 cents/liter (25.54 cents/gallon).
BTX component prices were sharply higher last week and extended those gains through Tuesday’s market close: Benzene was up 1.9 percent while Toluene was up 1.4 percent, and Xylene was up 1 percent. The estimated weighted average aromatic price is currently 73.68 cents/liter (278.89 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 27.45 cents/liter (103.92 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week but turned mixed in early week trade. RBOB futures are up 2.3 percent to start the week while FOB Prices for 87 CBOB and 87 conventional gasoline are down 0.1 and 0.6 percent, respectively. WTI futures are 1.9 percent higher at $64.07/barrel while Brent futures are up 2.2 percent to $69.22/barrel, from Friday to Tuesday’s close.
Liquid tanker rates are 6 percent lower on average this week with offers for the U.S. Gulf to China 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 25 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 5 percent decline. Liquid tanker freight rates from Brazil are down 10 percent, on average, this week. Freight rates across all origins are 43 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 0.4 percent this week and are down 2.8 percent from this same week in 2025. Values for PNW ethanol to Southeast Asia average $701.2/MT this week, down 0.8 percent from the prior week and down 1.8 percent year-over-year. That compares to U.S. Gulf to Southeast Asia C&F prices that average $660.94/MT and are up 0.6 percent from last week but are down 3.2 percent year-over-year. C&F prices for Brazilian ethanol to Southeast Asia are down 1.1 percent from last week.
