NAPERVILLE, Illinois, Oct 10 (Reuters) - U.S. ethanol exports have surged to record levels, reaching 6.6 billion liters (1.75 billion gallons) between September 2023 and August 2024, driven by a significant rebound in gasoline demand and a push for cleaner fuels globally. This period marks the fifth consecutive month of record exports, with total shipments over the last five months being 30% higher than the previous record set in 2018.
The United States dominates the global ethanol market, producing over half of the world's supply and serving as the leading exporter. The recent increase in demand from countries like Canada and the United Kingdom has been pivotal, as both nations seek to reduce carbon emissions through biofuels. Additionally, India's rising demand for corn-based ethanol has led to record domestic corn prices, pushing the country into the position of a net corn importer.
Despite a more than 5% drop in U.S. ethanol stocks last week—the lowest levels since December—the strong export demand has helped maintain supply levels above average for this time of year. Analysts expect that the U.S. Department of Agriculture will confirm that the ongoing 2024 corn harvest is on track to be the second-largest on record, further supporting ethanol production and exports in the months ahead.
The implications of these developments are significant, as they reflect a broader trend towards sustainable fuel sources and the interconnectedness of global agricultural markets. As countries ramp up their commitments to reducing carbon emissions, the U.S. ethanol industry is well-positioned to meet this growing demand.