Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 3.4 percent lower but erased some of those losses in early week trading to rise 1.1 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were stronger to end last week but were down 1 percent through Tuesday’s market close to their last quote of 46.82 cents/liter (177.22 cents/gallon).
FOB Houston ethanol prices finished last week 2.1 percent higher but are down 1.3 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 44.67 cents/liter (169.11 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are down in early week trading, falling 1.2 percent to 63.92 cents/liter (241.97 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 -19.25 cents/liter (-72.86 cents/gallon).
MTBE prices rose 8.3 percent last week and strengthened further in early week trading to gain 3.5 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 7 cents/liter (26.51 cents/gallon).
BTX component prices were sharply higher last week and continued that trend through Tuesday’s market close, albeit at a slower pace: Benzene was up 0.1 percent while Toluene was up 1.8 percent, and Xylene was up 1 percent. The estimated weighted average aromatic price is currently 71.62 cents/liter (271.12 cents/gallon), up from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 26.95 cents/liter (102.01 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were higher last week but showed mixed trends in early week trade. RBOB futures are down 1.9 percent to start the week while FOB Prices for 87 CBOB and 87 conventional gasoline are up 1 and up 0.2 percent, respectively. WTI futures are 2.7 percent lower at $63.43/barrel while Brent futures are down 2.7 percent to $67.47/barrel, from Friday to Tuesday’s close.
Liquid tanker rates are 6 percent higher on average this week with offers for the U.S. Gulf to the East Coast of Mexico seeing the largest gains (up 66 percent). Freight from the U.S. PNW 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 12 percent this week while freight from the PNW has posted a 1 percent decline. Liquid tanker freight rates from Brazil are up 1 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 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 up 0.1 percent this week and are down 3.5 percent from this same week in 2025. Values for PNW ethanol to Southeast Asia average $691.7/MT this week, down 0.3 percent from the prior week but up 1.6 percent year-over-year. That compares to U.S. Gulf to Southeast Asia C&F prices that average $640.53/MT and are down 1.6 percent from last week and are down 4.1 percent year-over-year. C&F prices for Brazilian ethanol to Southeast Asia are up 0.2 percent from last week.
