U.S. ethanol global sales lose momentum while DDGS exports post big gains

In Washington, D.C., American exports of ethanol fell 38% in May to 70.4 million gallons (mg), the lowest volume in a year. Nearly 80% of all U.S. ethanol exports were shipped to just four countries, with Brazil again markedly absent from the list. For the fifth consecutive month, the U.S. did not log any meaningful imports of foreign ethanol. This marks the smallest year-to-date imports since 2013.

Canada imported 27.3 mg, just 2% lower than April, representing 39% of all exported U.S. gallons. China increased its purchases by 7% to 12.6 mg and Nigeria imported 6.4 mg, up from zero in April. Exports to South Korea eased 61% to 9.0 mg following a larger purchase in April. Other substantial markets included India (4.2 mg, down 74% with an absence of undenatured ethanol imports for the first time in eleven months), Saudi Arabia (3.3 mg, up 30% to the largest monthly volume in nearly three years), and Mexico (3.2 mg, down 5%). Year-to-date U.S. ethanol exports totaled 582.4 mg, or 11% less than last year at this time.

U.S. exports of dried distillers grains (DDGS)—the animal feed co-product generated by dry-mill ethanol plants—leapt 21% in May to top 1,000,000 metric tons (mt) for the first time in eight months. Mexico boosted its imports by 61% to mark its eighth consecutive month as our top customer. Shipments of 255,394 mt represented a quarter of all U.S. DDGS exports in May and were more than twice Mexico’s imports at this time a year ago. Exports to Vietnam increased 7% to 107,460 mt, and shipments to South Korea rose 6% to 101,679 mt. However, exports were lower to Turkey (78,897 mt, down 11%) and Indonesia (65,091 mt, down 10%). Other larger trade partners included Japan (53,663 mt, up 83%), Colombia (tripled to 53,229 mt), Thailand (doubled to 52,409 mt), Morocco (39,261 mt, up 69%), and Canada (38,216 mt, up 2%). Total DDGS exports for the first five months of 2021 totaled 4.49 million mt, or 9% ahead of last year.