Market Matters Blog

Exports of dried distillers grains to China may have declined month-to-month, but year-to-date exports to China are 30% higher than year-ago levels.

September’s DDG exports totaled 1.109 million metric tons, up 22% from the same month a year ago, said DTN Analyst Todd Hultman. The data, which is released by the Foreign Ag Service, is based on U.S. Census Bureau tallies.

China was the biggest DDG customer in September, buying 484,535 metric tons, 192% more than the same month last year. In August, China bought more than 600,000 mt of U.S. DDG.

“Yes, exports are down on the month, so it could be spun as bearish or bullish, but overall I would say DDG activity to China is a bullish factor this year,” Hultman said.

U.S. ethanol exports are also stronger than last year, up 7% from a year ago. Exports totaled 60.3 million gallons in September, 6% higher than the same month a year prior, with Canada as the largest buyer.

Biodiesel exports in September increased 47% from a year ago to 28,205 mt. Canada bought 17,796 mt of that. Year-to-date exports in 2015 are down 6%.

(AG/SK)

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