US Ethanol Exports Jump 33% in 2014
US a Net Exporter of Ethanol for Fifth Consecutive Year in 2014
STREATOR, Ill. (DTN) -- U.S. exports of fuel ethanol in 2014 surged 33% above the export rate in 2013 to 826 million gallons, the second-highest annual U.S. ethanol export rate on record following 1.2 billion gallons in exports in 2011, the Energy Information Administration reported Thursday, March 26.
As would be expected, robust exports meant fewer gallons of imports were required, with EIA reporting U.S. ethanol imports tumbling 81% in 2014 to a 73-million-gallon four-year low from 377 million gallons in 2013. About 74% of U.S. imports came from Brazil, with the remaining gallons primarily from Guatemala, Canada, and the Netherlands.
The United States was a net exporter of ethanol for the fifth consecutive year in 2014, and is expected to continue the trend this year.
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EIA said large corn harvests and blending limits are boosting exports, with corn the primary feedstock for ethanol. The U.S. Department of Agriculture estimates the U.S. produced a record 14.2 billion bushels of corn in 2014, 3% higher than the previous record set in 2013.
As a gasoline component, ethanol is blended primarily at a 10% concentration ratio. There are several factors that limit the ability to blend ethanol above a 10% ratio, with most gasoline sold in the U.S. now at this 10% concentration point, capping growth in blending.
In 2014, Canada remained the top destination for U.S. ethanol exports at 336 million gallons, accounting for 41% of these exports. Brazil, the United Arab Emirates, and the Philippines all imported at least 50 million gallons of U.S. ethanol in 2014. There were 33 other countries that received U.S. ethanol exports in 2014, with their volume all below 50 million gallons each.
EIA said U.S. ethanol exports to Brazil spiked 146% in 2014 because of a shortfall in Brazilian-produced ethanol to satisfy domestic demand.
"Brazilian ethanol producers have already lost significant market share internationally over the past few years as U.S. exports have grown," said EIA. "As a result, reports state that as many as 60 Brazilian ethanol plants were temporarily closed in 2014. Brazilian ethanol producers were also hurt by a lack of U.S. ethanol import demand in 2014."
(BM/AG)
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