U.S. ethanol exports moderated in April but remain strong, according to the latest report from the Renewable Fuels Association.
Ethanol exports declined 12% in April to 172.3 million gallons (mg), about 8% below year-ago levels. Year-to-date U.S. ethanol exports reached 704.9 mg, marking a 10% increase over the same period last year.
Canada remained the top destination despite a 15% drop to 54.9 mg, representing nearly three-quarters of April’s denatured ethanol sales. Exports to the European Union surged 62% to 34.3 mg, driven almost entirely by the Netherlands. India imported 20.1 mg, a 7% increase, while exports to South Korea rose 8% to an 11-month high of 12.7 mg. Ten additional markets accounted for the remainder of April’s exports, with notable shipments to the United Kingdom (10.6 mg, down 65%), Brazil (7.9 mg, up 13%), Colombia (7.7 mg, down 28%), Mexico (6.3 mg, up 8%), and Peru (5.2 mg, down 6%). The Philippines, which imported 10.8 mg in March, was notably absent in April.
In the latest Ethanol Report podcast, RFA President and CEO Geoff Cooper says ethanol exports have not been affected by the trade wars and tariff discussions so far.
“We’ve been in the last six months or so between 150 and 190 million gallons per month and that’s a big number,” said Cooper. “We’re basically taking the annual output of one or two ethanol plants and exporting that every month of the year and and that really helps clear the marketplace domestically, helps keep our supply and demand in balance here in the US. It’s been a huge uplift for the industry.”
However, Cooper says they are keeping a close eye on Canada. “We really need to make sure our governments can come to a long-term agreement that is good for biofuel producers in both countries,” Cooper said. “Canada is our top ethanol export market has been for many years. We have a great trading relationship with the Canadian AG and biofuel sector and we don’t want to upset that apple cart.”