Credit: Renewable Fuels Association
U.S. ethanol exports are up 26 percent in July from June shipments, even while the U.S. records the third month of meaningful fuel ethanol import volumes.
The U.S. imported 4.1 mg of fuel ethanol in July from Brazil, while increasing ethanol exports to Brazil by 62 percent to 33.9 mg. Brazil has been the top market for U.S. ethanol exports since January 2017 with Canada coming in at number 2.
The seemingly ridiculous notion of shipping Brazil American ethanol while shipping Brazilian ethanol into America is due in part to California’s decision that Brazilian ethanol is more environmentally friendly than American ethanol. This, based on what experts would consider faulty modeling.
Of course, the impact of the tariff and tariff rate quote on U.S. ethanol likely will not be seen for a few months, as the implementation date for the 600 million liter tariff rate quota and 20% tariff was September 1.
U.S. ethanol exports totaled 116.7 million gallons (mg) in July. Canada and Brazil were again the top destinations for U.S. exports, combining to receive nearly two-thirds of total exports in July. Year-to-date U.S. ethanol exports to all destinations stood at 803.4 mg, indicating a record annualized export total of 1.38 billion gallons. This would account for approximately 9% of projected total U.S. ethanol production–an increase from the 5-year average of 5.7%.
Ethanol exports to Canada jumped by 56% to 38.7 mg. This was the largest monthly volume shipped to Canada in 39 months (since April 2014
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