US Ethanol Exports Hit 8-Month Low As Flows to Europe & Asia Fall

Ethanol exports from the United States fell to an eight-month low in November as shipments to Europe and Asia declined, according to data from the US Energy Information Administration (EIA).

US ethanol exports in November totaled 98.3 million gallons, down 25% from October and the lowest level since March 2022, when exports were impacted by Russia's invasion of Ukraine.

Exports to Europe, which typically account for around half of total US ethanol exports, fell to 43 million gallons in November, down 35% from October and 50% from a year earlier. The decline was likely due to cheaper ethanol prices in Europe and increased competition from other ethanol producers, such as Brazil.

Exports to Asia also fell in November, down 19% from October to 37 million gallons. The decline was likely due to a number of factors, including lower demand from China, which has been implementing a zero-COVID policy, and increased competition from other ethanol producers in the region.

The decline in ethanol exports comes as US ethanol production has been rising in recent months. Production reached 1.1 billion gallons in November, up 3% from October and the highest level since March 2022.

The increase in ethanol production was due to higher demand for gasoline, as well as increased ethanol blending by refiners. The US Department of Agriculture (USDA) has forecast that ethanol production will continue to increase in 2023, reaching 1.15 billion gallons per year.

The decline in ethanol exports is likely to have a negative impact on US ethanol producers. The ethanol industry has been struggling in recent years, due to low prices and declining demand. The decline in exports is likely to put further pressure on ethanol producers and could lead to some plant closures.

Conclusion

The decline in US ethanol exports is a concern for the ethanol industry. The industry has been struggling in recent years, and the decline in exports is likely to put further pressure on ethanol producers. The USDA has forecast that ethanol production will continue to increase in 2023, but it is unclear whether demand will keep pace.