Ethanol, Fuels and Co-Product Pricing
Market Outlook: U.S. ethanol prices ended last week 1.6 percent lower and continued that trend in early week trading to fall 2.9 percent through Tuesday’s close. Midwest wholesale rack ethanol prices were weaker to end last week but were down 1.2 percent through Tuesday’s market close to their last quote of 46.77 cents/liter (177.03 cents/gallon).
FOB Houston ethanol prices finished last week 3.7 percent lower and are down 1.1 percent through Tuesday’s trading from Friday’s close. FOB Houston ethanol prices are quoted at 43.95 cents/liter (166.36 cents/gallon). FOB Santos, Brazil anhydrous ethanol prices were higher last week; they are up in early week trading, rising 1.1 percent to 61.81 cents/liter (233.96 cents/gallon) through Tuesday’s close.
The FOB Gulf-Santos, Brazil ethanol spread has widened from last week’s close through Tuesday’s trading and is currently at -17.86 cents/liter (-67.6 cents/gallon).
MTBE prices fell 18.3 percent last week but saw a steadier trend emerge in early week trading and were just 0.5 percent lower from Friday’s close through Tuesday’s end of day. MTBE’s premium to FOB Houston ethanol has increased from last week’s report and stands at 1.93 cents/liter (7.32 cents/gallon).
BTX component prices were sharply lower last week but were unevenly steady through Tuesday’s market close: Benzene was down 0.5 percent while Toluene was up 0.1 percent, and Xylene was down 0.5 percent. The estimated weighted average aromatic price is currently 65.43 cents/liter (247.67 cents/gallon), down from last Friday’s close. The BTX-Houston ethanol spread widened last week, and the weighted average BTX price is 21.48 cents/liter (81.32 cents/gallon) higher than the FOB Houston ethanol price.
Gasoline and petroleum products were mostly higher last week and extended that rally in early week trade. RBOB futures are up 2.7 percent to start the week while FOB Prices for 87 CBOB and 87 conventional gasoline are up 2.2 and up 1.3 percent, respectively. WTI futures are 4.2 percent higher at $61.61/barrel while Brent futures are up 4.2 percent to $65.99/barrel, from Friday to Tuesday’s close.
Liquid tanker rates are 4 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 Brazil to Europe saw the largest declines and is down 12 percent from last week. On average, tanker freight from the U.S. Gulf is up 6 percent this week while freight from the PNW has posted a 0.1 percent increase. Liquid tanker freight rates from Brazil are up 4 percent, on average, this week. Freight rates across all origins are 28 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 down 0.7 percent this week and are down 3 percent from this same week in 2025. Values for PNW ethanol to Southeast Asia average $640.16/MT this week, down 3.3 percent from the prior week and down 2.6 percent year-over-year. That compares to U.S. Gulf to Southeast Asia C&F prices that average $627.09/MT and are down 2 percent from last week and are down 2.2 percent year-over-year. C&F prices for Brazilian ethanol to Southeast Asia are up 2 percent from last week.
