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U.S. Ethanol Exports Surge in June while Imports Return | KRVN Radio

U.S. Ethanol Exports Surge in June while Imports Return

U.S. Ethanol Exports Surge in June while Imports Return

U.S. ethanol exports increased to 128.4 million gallons (mg) in June, according to data issued by the government and analyzed by the Renewable Fuels Association (RFA). This was a 29% jump from May.

Canada was the top destination for the second consecutive month, with a 28% increase in sales at 29.5 mg of ethanol. Shipments to Brazil nearly tripled in June to 28.0 mg, up 164% after sales plummeted 74% in May. India was the third-largest destination at 21.9 mg, a 52% gain over the prior month. Other top importers of American ethanol included South Korea (6.8 mg, down 24%), Colombia (6.8 mg, down 25%), Oman (6.3 mg), and Peru (6.1 mg). Total exports for the first half of the year stand at 759.9 mg—19% lower than the first six months of 2018. This implies an annualized export volume of 1.52 billion gallons which, if realized, would be the second-largest volume on record.

June shipments of U.S. undenatured fuel ethanol were 64.0 mg, a gain of 31% following a drop in May. Sales to our two largest customers, Brazil (25.6 mg, up 15 mg) and India (18.9 mg, up 4.5 mg), improved by an average of 78% in June and accounted for 70% of our global market for undenatured fuel. Other key destinations were Spain (5.8 mg) and Mexico (3.5 mg).

U.S. exports of denatured fuel ethanol experienced a 16% upturn in June at 53.5 mg. This includes a 30% bump in sales to Canada at 28.1 mg, which accounted for half of American product exported. Oman (6.3 mg), Peru (6.1 mg), and Colombia (6.0 mg) were other major markets.

U.S. sales of ethanol for non-fuel, non-beverage purposes rallied in June as 10.9 mg entered the global marketplace, over 6 mg above May volumes. U.S. shippers exported 7.1 mg of undenatured product, with the bulk distributed to Brazil (2.4 mg), Saudi Arabia (2.1 mg), South Korea, Colombia, and Canada. India (3.0 mg) sourced most exported denatured product for non-fuel, non-beverage purposes.

The U.S. imported 24.0 mg of undenatured fuel ethanol from Brazil in June. This was the largest monthly volume of foreign ethanol to enter the U.S. since Aug. 2018. Total imports for the first half of the year stand at 47.9 mg, compared to 1.6 mg the first six months of 2018. This implies an annualized import volume of 95.7 mg for 2019 which, if realized, would represent the largest volume in six years.

U.S. exports of dried distillers grains (DDGS), the animal feed co-product generated by dry-mill ethanol plants, pared back 6% to 962,592 metric tons (mt) in June after experiencing a jump the prior month. Mexico was again the top customer despite a 29% decline in sales, purchasing 162,887 mt. DDGS exports to Vietnam shot 37% higher to a seven-month high of 125,523 mt. Other key customers were South Korea (114,564 mt, up 4%), Indonesia (82,334 mt, up 10%), Canada (71,384 mt, up 20%), and Turkey (71,326 mt, down 39%). Shipments to these six top markets represented two-thirds of all global sales, with remaining volumes distributed among another 30 countries. U.S. distillers grains exports for the first half of 2019 stand at 5.35 million mt—5% lower than the first six months of 2018. This implies an annualized export volume of 10.70 million mt.

 

 

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