Ethanol Market and Pricing Data - November 28, 2017

1. Ethanol, Fuels and Co-Product Pricing

Gallons
Liters

Market Outlook: U.S. ethanol prices are mixed this week, having found some strength after prices declined during last week’s U.S. holiday-shortened trading. Nearby CBOT ethanol futures are down 0.85 cents/liter (3.2 cents/gallon) this week while Midwest rack prices are steady at 40.52 cents/liter (153.38 cents/gallon). Ethanol futures have been under pressure from lower corn prices, a higher U.S. dollar, and weaker petroleum prices. Physical Midwest ethanol prices are finding some support in early-week cash buying. 

FOB Houston ethanol prices are steady this week, with Brazilian ethanol and U.S. Gulf gasoline prices providing support. FOB Houston ethanol was last quoted at 38.433 cents/liter (145.48 cents/gallon), unchanged from last week. FOB Santos, Brazil ethanol prices rose 2.2 percent this week to 57.99 cents/liter (219.52 cents/gallon). Hydrous ethanol sales were strong during the first half of November, buoying export prices. 

Hydrous ethanol loses competitiveness (due to its lower fuel efficiency) with gasoline when its price exceeds 70 percent of gasoline prices. The ratio of hydrous ethanol to gasoline fell in three of the four reported sectors of Brazil (South Brazil, the Center West, and the North) this week but gained slightly (0.5 percent) in the South East. Hydrous ethanol is now competitive or at break-even prices with gasoline in all areas except the North East. Hydrous ethanol has been valued at 80 percent or greater of gasoline prices since February 2016. The ratio has been falling steadily since July 2017, however, a dynamic which could increase hydrous ethanol sales in the region going forward. 

Due to Brazil’s rising prices, the FOB Santos-FOB Houston spread widened 6.5 percent (1.19 cents/liter or 4.5 cents/gallon) this week to its last quote of -19.558 cents/liter (74.03 cents/gallon). The spread is now at a new six-month low and nearly three-times as large – favoring U.S.-origin ethanol – as its five-year average. 

MTBE prices rebounded this week after three weeks of lower prices. MTBE FOB U.S. Gulf prices rose 0.8 cents/liter (3.02 cents/gallon) this week to 52.11 cents/liter (197.25 cents/gallon). FOB Houston MTBE is priced 13.67 cents/liter (51.77 cents/gallon) above FOB Houston ethanol. 

BTX component prices are mostly higher this week with Benzene prices rising 2 percent week-over-week on strong demand for prompt shipments. Toluene rose 3.6 percent while Xylene prices increased 1.4 percent. The weighted average aromatic price is currently estimated at 66.86 cents/liter ($2.53/gallon), up 2.2 percent from last week. The weighted average BTX price is 28.4 cents/liter (1.07 cents/gallon) higher than FOB Houston ethanol prices. 

Gasoline futures and cash prices currently reflect different dynamics. RBOB futures are lower (down 0.6 percent this week) as the crude oil selloff pressures the market. Conversely, the Keystone shutdown temporarily tightened physical supplies which is boosting FOB Houston RBOB and CBOB prices. So far this week, 83.7 octane RBOB FOB Houston pipeline prices are up 1.4 percent to 45.66 cents/liter (172.86 cents/gallon) and 87 octane CBOB FOB Houston prices rose 1.4 percent to 46.08 cents/liter (174.43 cents/gallon). 

Chart 1
Chart 2
Chart 3
Chart 4
Chart 5
Chart 6
Chart 7
Chart 8
Chart 9

Price Database: If you are interested in historical price data, please click here.

2. Tariff Rates

HS Codes
Global Tariff Rates

Tariff Rate Database: If you are interested in tariff rate data for all U.S. export markets, please click here.

3. Additional Market Resources

If you are interested in any of the reports described here, please click here.

USDA GAIN Reports

Title

Description

Link

Argentina Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Argentina.

Read here.

Brazil Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Brazil.

Read here.

Canada Biofuels Annual 2016 (GAIN)

This report provides an overview on biofuel use in Canada.

Read here.

China Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in China.

Read here.

Colombia Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Colombia.

Read here.

EU-28 Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in the EU-28.

Read here.

EU-28: Biofuel Mandates in the EU by Member State (GAIN)

This report provides an overview on the biofuel use mandates in the various EU member states. It supplements the EU-28 Biofuels Annual Report.

Read here.

India Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in India.

Read here.

Indonesia Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Indonesia.

Read here.

Korea Bioethanol Workshop 2017

The report includes an overview of the 2017 Bioethanol Workshop and Roundtable in Seoul, Korea.

Read here.

Malaysia Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Malaysia.

Read here.

Peru Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Peru.

Read here.

Philippines Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in the Philippines.

Read here.

Romania Biofuels Market Overview 2017 (GAIN)

This report provides an overview on biofuel use in Romania.

Read here.

Spain's Biodiesel and Renewable Diesel Overview 2017 (GAIN)

This report provides an overview on biofuel use in Spain.

Read here.

Thailand Biofuels Annual 2017 (GAIN)

This report provides an overview on biofuel use in Thailand.

Read here.