Ethanol Exports Down, DDGs Up in May

Cindy Zimmerman

U.S. ethanol exports were down 10 percent in May to 113.2 million gallons (mg), mainly due to lower undenatured non-beverage, non-fuel ethanol shipments, including 12.6 mg lower exports to India, according to the latest analysis by the Renewable Fuels Association (RFA).

Canada was our largest destination for the 26th consecutive month and accounted for 45% of global ethanol sales. The 51.0 mg of ethanol shipped north of our border (a 9% increase over April and the second largest on record) included 73% of total U.S. denatured fuel exports for the month. Other substantial markets included the European Union (22.6 mg, +37%)—primarily shipped to the Netherlands, marking the country’s second-largest import volumes on record—the United Kingdom (9.7 mg, -7%), South Korea (9.6 mg, -10%), Peru (6.2 mg, +113%), and Colombia (6.0 mg, +116%). Brazil again remained essentially absent from the market with a 16% tariff on U.S. ethanol in place. Year-to-date U.S. ethanol exports total 593.0 mg, lagging 18% behind last year at this time.

Meanwhile, exports of the ethanol co-product dried distillers grains (DDGS) hit a 9-month high of 958,385 metric tons (mt) in May. This was 23% more than April but one percent behind last year. The bulk of DDGS shipments went to just six countries with Mexico up four percent to capture the largest market share for the 11th consecutive month and Turkey’s imports were up sevenfold to a 22-month high of 146,559 mt. South Korea, Indonesia, Vietnam, and Canada rounded out our largest global customers for the month. In addition, several smaller markets logged near-record volumes. For example, Tunisia imported 20,008 mt and Guatemala bought 18,016 mt. Year-to-date DDGS exports, totaling 4.17 million mt, lag 11% behind last year at this time.

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