#Ethanol, DDG Exports Jump in July

Joanna Schroeder

The month of July saw a jump in ethanol and distillers grains with solubles (DDGs) exports. According to Geoff Coooper, Senior Vice President of the Renewable Fuels Association (RFA), total U.S. exports for the month were 69.3 million gallons (mg), a 49 percent increase from June and the highest since April. Top destinations included Canada (19.9 mg), Brazil (15.2 mg) and India (11.2 mg). For the second straight month, China was absent from the market. Export totals for the year to date are 516.4 mg with total export totals for 2016 predicted to be around 885.3 mg.

July 2016 monthly ethanol exportsExports of denatured fuel ethanol tallied at 22.0 mg, up 7 percent from June. Canada remained the top market for denatured product for fuel use, taking in 19.9 mg. Peru was the only other major customer for denatured fuel ethanol exports, receiving 2.1 mg.

Undenatured fuel ethanol exports increased to 44.1 mg, nearly double the 23.6 mg shipped in June. At 15.2 mg, Brazil was again the leading destination for undenatured fuel exports. For the first time in three months, India was seen importing U.S. undenatured product for fuel use, bringing in 11.2 mg. The Philippines imported 10.3 mg, its largest monthly total of the year. Mexico (2.2 mg), South Korea (1.8 mg) and Saudi Arabia (1.5 mg) were other notable destinations in July. Exports of denatured and undenatured ethanol for non-fuel, non-beverage use were 3.2 mg in July, with Canada receiving the lion’s share at 2.7 mg.

The U.S. imported 10.5 mg of ethanol from Brazil in July—identical to the June total. Year-to-date ethanol imports stood at 23.0 mg through July, suggesting annual imports of 39.4 mg.

Exports of distillers dried grains with solubles (DDGS)—the animal feed co-product from dry mill ethanol production—surged to a nine-month high of 1.094 million metric tons (mt) in July, up 9 percent from June. China was the top market for U.S. exports for the third month in a row, receiving 358,985 mt. Mexico (147,779 mt), Vietnam (116,180 mt), South Korea (80,460 mt) and Thailand (61,744 mt) were other leading DDGS importers. Shipments to both Vietnam and Thailand were the highest of the year to those countries. Year-to-date DDGS exports tallied at 6.45 million mt, indicating an annualized total of 11.07 million mt.

Distillers Grains, Ethanol, Exports, RFA