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RFA: August ethanol exports drop

U.S. ethanol exports hit a 2022 low in August due to strength in the U.S. dollar relative to other currencies and slumping crude oil prices, which reduces blending demand.

The Renewable Fuels Association says exports of 77 million gallons were down 28% from July, but that did include a record month for shipments to Canada at 52.9 million gallons with almost 50 million on that denatured fuel ethanol. That is the 17^th month in a row with Canada taking the top spot, accounting for 69% of total demand for U.S. ethanol. The other top destinations for the month were South Korea, Mexico, Saudi Arabia, and the Netherlands. The overall pace of U.S. ethanol exports is 27% ahead of 2021 at 1.01 billion gallons.

Exports of distillers dried grains with solubles were a three-month low at 981,020 tons, primarily to Mexico, Vietnam, and South Korea. Year-to-date DDGS exports are 7.7 million tons, about steady with a year ago.

Ethanol imports for August were 12.8 million gallons, mostly from Brazil, with cumulative 2022 purchases at 53 million gallons, more than double last year’s pace.

Ethanol exports are dictated by a few different factors including currency trade and crude oil prices, while DDGS exports are mostly tied to the dollar and feed demand.