US ethanol exports up 85% in first quarter of 2016/2017 MY

US ethanol exports were off to a strong start for the first quarter of the 2016/2017 marketing year and were at their highest levels over the past five years.

Exports totaled 353.2 million gallons for the months of September, October, and November 2016, according to data recently released by the US Department of Agriculture’s Global Agricultural Trade System (GATS).

Brazil, Canada, and China were the top customers for US ethanol, respectively, while India, Peru, South Korea, and Mexico were the next largest markets with exports totalling 62.4 million gallons over the same time period.

These top seven markets accounted for 88% of US ethanol exports in the first quarter.

Exports of US ethanol to Brazil have increased substantially to 111.6 million gallons in the first three months of the current marketing year, representing nearly a third of total US ethanol exports.

This is the second highest volume of US ethanol exports to Brazil over the last decade.

Enforceable government ethanol mandates are driving the increases in Brazilian imports of US ethanol, as Brazilian sugarcane has been diverted to sugar production to capture a price premium.

To enforce its mandates, Brazil ramped up imports of price-competitive US ethanol, highlighting the important role of trade in meeting ethanol mandates globally.

US ethanol exports to Canada totalled 87.8 million gallons, the highest level of US ethanol imports by Canada during this time frame with a 26% increase in imports over the first quarter of the previous marketing year.

Exports to China, however, are projected to fall as the year goes on due to the recent increase in anti-dumping duties China slapped on US ethanol imports, claiming that cheap US ethanol is undermining domestic industry.