NAPERVILLE, Illinois, Oct 9 (Reuters) - U.S. ethanol exports have surged to a record 6.6 billion liters (1.75 billion gallons) between September 2023 and August 2024, driven by increasing global demand for cleaner fuels. This marks a significant boost in the U.S. ethanol industry, accounting for nearly 40% of annual U.S. corn use.
The rebound in gasoline demand, nearing three-year highs, has contributed to a drop in U.S. ethanol stocks, which fell over 5% last week to their lowest levels since December. Despite the drop in stocks, strong production levels and robust exports have kept supplies in check. Canada and the United Kingdom are leading importers, with Canada making up 37% of shipments.
India's rising demand for U.S. ethanol has also impacted global corn prices, turning the nation into a net corn importer. As countries worldwide commit to reducing carbon emissions, U.S. ethanol exporters are poised to benefit from the transition to biofuels.
This development signals a potential shift in global energy markets, as the U.S. continues to dominate ethanol production, supplying just over half of the world's annual ethanol needs. Analysts anticipate that robust export levels could persist, especially with expectations of a bumper corn harvest in the U.S.
(Source: Reuters, 2024-10-09)