USGC: Ethanol, DDGS exports up during 2018-‘19 marketing year

By Erin Voegele | March 20, 2019

Analysis recently released by the U.S. Grains Council shows U.S. exports of ethanol and distillers dried grains with solubles (DDGS) were up significantly during the first four months of the 2018-’19 marketing year.

On March 14, the USGC released an analysis of USDA data that shows overall exports of U.S. feed grains in all forms were up 25 percent during the first four months of the 2018-’19 marketing year, when compared to the same period of the previous marketing year. The USGC said shifting dynamics in world markets and continuous market development efforts resulting in growing demand for U.S. feed grains and ethanol during the period.

According to the USGC’s analysis, exports of feed grains in all forms reached 38.9 million metric tons during September 2018 through December 2018, with corn, DDGS and ethanol continuing to realize substantial growth in both established and developing markets.

The analysis shows ethanol exports were up 18.2 percent during the four-month period, reaching nearly 553 million gallons. The USDA said ethanol exports to the top two U.S. markets—Canada and Brazil—were both up significantly from the prior year. Exports to Brazil, the largest purchaser of U.S. ethanol, reached 148 million gallons, a 48 percent year-over-year increase. Exports to Canada increased 11 percent, reaching 122 million gallons. The USGS also said exports to the EU, the Philippines, Columbia and Peru were up during the period, while exports to South Korea nearly doubled, reaching 34.5 million gallons.

The USGC’s analysis shows DDGS exports increased 5.3 percent during the first four months of the current marketing year, when compared to the same period of the previous marketing year. According to the USGC, eight of the top 10 U.S. DDGS buyers increased purchases during the period. The analysis shows Asian buyers are currently driving DDGS export growth. Vietnam increased its DDGS imports by 67 percent during the period, while Thailand increased U.S. DDGS imports by 36 percent, and Indonesia increased imports of the U.S. coproduct by 11 percent. Purchases by the EU, Canada and Japan were also up.

A full copy of the USGC’s analysis, which also addresses increased U.S. corn exports, is available on the USGC website