Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 2.2 percent higher but corrected lower in early week trading to fall 1.1 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 59.56 cents/liter (225.47 cents/gallon).
FOB Houston ethanol prices finished last week 4.4 percent higher and are up 0.6 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 55.26 cents/liter (209.17 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were lower last week; they are up in early week trading, rising 0.3 percent to 57.43 cents/liter (217.38 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 -2.17 cents/liter (-8.21 cents/gallon).
MTBE prices rose 1.4 percent last week but softened in early week trading to fall 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 33.52 cents/liter (126.88 cents/gallon).
BTX component prices were mixed last week but pulled back through Tuesday’s market close: Benzene was down 0.3 percent while Toluene was down 0.2 percent, and Xylene was down 0.2 percent. The estimated weighted average aromatic price is currently 120.48 cents/liter (456.06 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread narrowed last week, and the weighted average BTX price is 65.22 cents/liter (246.89 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly higher last week but were sharply lower in early week trade. RBOB futures are down 10.5 percent to start the week while FOB prices for 87 CBOB and 87 conventional gasoline are down 1.1 and 0.8 percent, respectively. WTI futures are 7.1 percent lower at $89.78/barrel while Brent futures are down 9.6 percent to $93.59/barrel, from Friday to Tuesday’s close.
Liquid tanker rates are 4 percent lower on average this week with offers for the U.S. Gulf to the East Coast of Mexico seeing the largest gains (up 21 percent). Freight from Brazil to India saw the largest declines and is down 20 percent from last week. On average, tanker freight from the U.S. Gulf is up 1 percent this week while freight from the PNW has posted a 1 percent decline. Liquid tanker freight rates from Brazil are down 14 percent, on average, this week. Freight rates across all origins are 62 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 2.3 percent this week and are up 14 percent from this same week in 2025. Values for PNW ethanol to Southeast Asia average $834.92/MT this week, down 0.1 percent from the prior week but up 20.1 percent year-over-year. That compares to U.S. Gulf to Southeast Asia C&F prices that average $822.31/MT and are up 1.8 percent from last week and are up 22.6 percent year-over-year. C&F prices for Brazilian ethanol to Southeast Asia are down 1.5 percent from last week.
