U.S. ethanol exports on pace to set record

Source: By Amie Sites, Brownfield • Posted: Wednesday, August 8, 2018

U.S. ethanol exports are on pace to exceed last year’s record of 1.4 billion gallons.

Geoff Cooper is the executive vice president of the Renewable Fuels Association.

“We’re on pace to do about 1.8 billion gallons of exports this year,” he says. “I think it will be somewhat less than that- maybe closer to 1.7 or 1.6 billion gallons.”

He tells Brownfield the export market is especially critical as domestic demand has been negatively impacted by RFS waivers.

“It has really helped to shore up overall supply demand balance and ensure that the industry is able to continue to grow and grow profitably,” he says.

Brazil is the leading market for U.S. ethanol exports, receiving about 40 percent of total exports so far this year. Markets to China, which used to be the third largest market for ethanol, dropped to zero in April because of increased tariffs.

Cooper says he hopes that negotiations continue between the two countries continue, and that China will reconsider tariffs against U.S. ethanol and distillers grains.

|