News

U.S. Ethanol Exports Drop Sharply in February, Raising Concerns


U.S. exports of fuel ethanol totaled 253.7 million liters (67 million gallons) in February, plunging by more than 20 percent year-over-year, government data showed on Tuesday, raising worries among some traders over stagnating demand as inventories swell.

Total exports also were down over 20 percent from the prior month. That came as demand from China, which was the top consumer in January dropped by nearly 70 percent to 33.7 million liters, data from the U.S. Department of Agriculture (USDA) showed.

The figures were lower than some expected, raising speculation among traders that some shipments would be seen in data published next month and worries among others that demand in foreign markets is taking a hit from currency gyrations and low oil prices at a time when it is most needed.

Brazil was the top destination in February, the data showed. Importers there scooped up 83.6 million liters, more than triple what they took in January and confirming Reuters reporting in early February that high local prices in Brazil were renewing demand from one of the top consumers of U.S. ethanol.

Still, that was slightly lower than volumes shipped to Brazil in February 2015. Year-to-date shipments to the South American country are down more than 40 percent in the first two months of the year.

“The strong dollar is one reason,” said a U.S. trader, noting the trend as worrying.

The U.S. dollar hovering near multi-year highs makes the greenback-traded fuel more expensive to foreign buyers.

Ethanol futures traded on the Chicago Board of Trade are up slightly this year and inventories are near record levels.

Source: AgWeek

ProAg Quick Links

Agent Toolbox Grower Toolbox Careers

ProAg News

2019 fall cover crop considerations

In our business, we have seen some excellent soil health and erosion benefits from cover crops and encourage growers to take a look at the rewards cover crops can provide. Whether you plan to interseed into a standing crop or wait to plant until after harvest, there are many options and variables to consider....

Dicamba Injury Study

Research has shown that soybeans entering the reproductive phase are most vulnerable to injury from dicamba. That reproductive time is now across the major production areas, according to the latest U.S. Department of Agriculture (USDA) Crop Progress and condition reports....

Bill would protect U.S. domestic food supply

U.S. Senators introduced bipartisan legislation to address the shortage of agricultural inspectors who protect our food supply and agricultural industries at the border. Agricultural inspectors work to prevent the intentional or unintentional entry of harmful plants, food, animals and goods into the United States....
Get ProAg updates via email
Your browser is out-of-date!

Update your browser to view this website correctly. Update my browser now

×