Strong start to 2026 for U.S. ethanol and DDGS exports amid shifting global demand

Texas: Exports of ethanol and dried distillers grains (DDGS) from the United States began 2026 on a firm note, reflecting steady global demand for corn-based fuel and animal feed products, RFD TV reported.

Ethanol shipments stood at 212.1 million gallons in January, slightly lower than December levels, but supported by increased demand from key markets. Canada remained the largest buyer, with imports rising to 70 million gallons, mainly in the form of fuel ethanol.

Brazil sharply increased its purchases to 36.4 million gallons, marking its highest monthly import level in nearly six years. In contrast, exports to the European Union declined to 35.1 million gallons, the lowest in six months. Shipments also fell to India and the Philippines, while rising to Colombia, the United Kingdom, and Vietnam.

The changing trade pattern is expected to influence ethanol production and corn demand, as stronger buying from South America helps balance weaker demand in some other regions.

DDGS exports also showed growth, rising 13% to 1.01 million metric tonnes. Mexico remained the top buyer, followed by South Korea, while Colombia recorded its highest-ever purchases. However, shipments to Indonesia and Vietnam declined.

Region-wise, Mexico imported over 226,000 metric tonnes, maintaining its lead. Turkey and the European Union also posted gains, while demand from Canada and Southeast Asia remained uneven.

Looking ahead, exporters are expected to keep a close watch on global demand trends, as trade flows may continue to fluctuate due to changes in feed demand, fuel blending economics, and currency movements.

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