By Jamie Martin
U.S. ethanol exports are experiencing a record-breaking surge in 2024, reaching 29.6 million barrels by August, a 34.92% increase from the same period in 2023. This growth is set to surpass the all-time high of 40.97 million barrels recorded in 2018.
Low U.S. ethanol prices, resulting from a record corn harvest in 2023, have made the product more appealing globally.
The Chicago ethanol benchmark has averaged 23.84% lower in 2024 compared to 2023, further boosting exports. At the same time, U.S. ethanol stocks have grown, averaging 1.064 million barrels, or 4.6% higher than in 2023.
Meanwhile, Brazil's ethanol exports have decreased due to booming domestic demand for hydrous E100 ethanol, driven by favorable pricing against gasoline. Retail ethanol sales in Brazil have risen 44% compared to 2023, reducing the country’s export capacity.
This quote from an industry expert, “With domestic demand booming as much as it is, exporting ethanol has not been a priority for a while,” highlights Brazil’s shift in focus.
Canada remains the largest importer of U.S. ethanol, accounting for 35.39% of total exports in 2024. Other growing markets include the UK, India, and Colombia, where demand has surged due to government mandates and growing biofuel usage.
Increased international demand has supported U.S. production, which averaged 1.046 million barrels per day by November, ensuring balanced supply-demand dynamics.
Photo Credit: shutterstock-dickgage
Categories: National