US ethanol production, exports growing

US ethanol production so far this year is up 2% and exports are up 6% compared to the same period a year ago, according to the June 12 Grain Transportation Report (GTR) by the US Department of Agriculture.

Production of just slightly more than 4 billion gallons is also 7% higher than the five-year average. With the increase in production, Class 1 ethanol rail movements were up 5% from last year and 12% from the five-year average, according to the GTR. Of the total production 71% was shipped by rail out of the US Midwest.

Of those rail movements, 41% went to the East Coast, 29% went to the Gulf Coast, 19% went to the West Coast, 2% to the Rocky Mountains district, 4% to Canada, and 5% elsewhere.

Gulf Coast shipments were up 12% and West Coast shipments were up 17%, consistent with a rise in exports, the GTR said.

Exports, as a share of total demand, grew to a record annual high of 12% in 2024. Exports have been 14% of total demand through the first three months of 2025. Strong sales to key markets drove US ethanol exports up 6% from the same time last year and up 29% from the five-year average, according to the Foreign Agricultural Service (FAS).

The top five buyers including Canada, the EU, India, the United Kingdom and Colombia, accounted for 73% of total US ethanol exports.

For fiscal year 2025, US ethanol exports are expected to reach a record-high $4.3 billion. If realized, this would be a 3% increase from fiscal year 2024.

“The projected increases in Canada, EU, UK, and Colombia are driven by national mandates to blend fuel ethanol with gasoline,” the GTR said. “India’s projected increase is driven by non-fuel applications of ethanol, as the country’s domestic ethanol is increasingly diverted to the fuel market”.

Tags: exports, US, Production, shipments, ethanol