By Jamie Martin
The U.S. Department of Agriculture (USDA) predicts that ethanol exports will achieve a new milestone in fiscal year 2025, reaching an unprecedented 2 billion gallons.
This projection is part of the USDA's latest quarterly trade outlook, which also estimates the value of these exports at $4.3 billion, consistent with the previous fiscal year's revised forecast.
The anticipated increase in export volume is driven by competitive pricing relative to Brazil, despite a slight expected drop in ethanol unit value correlating with U.S. corn prices.
Key markets like Canada, which is the largest ethanol importer globally, continue to rely heavily on U.S. supplies, underscoring the U.S.'s pivotal role in the international ethanol market.
The report also highlights challenges such as Brazil's heightened import duty, which restricts U.S. ethanol's market access, and the stabilizing ethanol prices in Europe.
Despite these hurdles, the USDA remains optimistic about maintaining strong sales in other significant markets like India, Colombia, and the European Union, attributing the sustained demand to strategic market positions and quality advantages over competitors.
Photo Credit: usda
Categories: National