US ethanol exports rise to record in 1H
US ethanol exports climbed to a record high in the first half of the year, driven by strong domestic production and foreign demand.
US ethanol exports averaged 125,600 b/d in January-June, up by a third from the same period last year and 2.2pc higher than the previous first-half record set in 2018, according to US Department of Agriculture (USDA) data going back to 2012.
Exports would set a full-year record if the pace is maintained through the end of 2024. US ethanol producers like Green Plains and ADM have said they are confident that robust exports will extend through the end of the year.
Robust domestic production has fed the rise in US exports, with output averaging 1.03mn b/d through June, the third highest rate through the first six months behind 2018 and 2019, according to EIA data dating to 2010. January-June output would also rank third on an annualized basis.
Low prices for corn, the main feedstock for US ethanol, have incentivized higher production by boosting margins. Front month CBOT corn futures this year have averaged 439¢/bushel, down by nearly a third from 2023, as prices near pre-2021 levels when they averaged less than $4/bushel for six consecutive years. Participants are expecting a record or near-record US corn yield this year, pressuring the domestic corn market.
Canada and the UK consistently combine for nearly half of US ethanol exports, with Asian markets emerging as key destinations for US ethanol. Asian markets combined for a 19pc share of US exports in the first half, compared with a 10pc share in the same period a year earlier.
US exports to Asia-Pacific in the first half more than doubled from the same period last year to around 24,000 b/d as countries in the region raise ethanol fuel blend rates. India is steadily increasing its fuel ethanol blends, with a goal of 20pc by 2025, helping nearly double first-half receipts of US ethanol to 13,100 b/d.
Exports to the UK have also nearly doubled to 16,300 b/d, as the country can take advantage of favorable trade economics into the rest of Europe in addition to meeting demand from its own fuel blending mandates.
US ethanol imports remain relatively small, averaging 183 b/d in the first half, up from 19 b/d in the same period last year. Nearly all undenatured ethanol imports for fuel use arrive from Brazil, with the country's sugarcane-based ethanol used as feedstock at LanzaJet's sustainable aviation fuel (SAF) plant in Georgia.
US ethanol exports may continue to rise in the coming months and years as the growing SAF market provides new demand pathways for ethanol.
Related news posts
Methanex to acquire OCI’s methanol business for $2bn
Methanex to acquire OCI’s methanol business for $2bn
Houston, 9 September (Argus) — Methanol producer Methanex announced Sunday that it will acquire OCI's international methanol business for $2.05bn. As part of the transaction, Methanex will acquire four primary assets, including a 910,000 t/yr methanol facility and 340,000 t/yr ammonia facility in Beaumont, Texas. Methanex will acquire OCI's 50pc interest in the 1.7m t/yr Natgasoline methanol plant in Beaumont. The acquisition of Natgasoline is subject to a legal proceeding between OCI and Proman, the other 50pc holder in Natgasoline, over certain shareholder rights. If the dispute is not resolved within a certain period, Methanex has the option to exclude the purchase of the Natgasoline joint venture and proceed with the rest of the transaction. The transaction also includes OCI HyFuels, a producer of green methanol products such as biomethanol and bio-MTBE, and trading and distribution capabilities for renewable natural gas (RNG) and ethanol. Additionally, Methanex will acquire an idled 1m t/yr methanol facility in Delfzijl, Netherlands. The purchase price includes $1.15 billion in cash, the issuance of 9.9 million shares of Methanex valued at $450 million and the assumption of about $450 million in debt and leases. The acquisition of fertilizer producer OCI began over a year ago, according to OCI officials. "We identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023," OCI executive chairman Nassef Sawiris said. This acquisition moves Methanex, primarily a methanol maker, into the ammonia sector. "From an operating perspective, we have a shared culture of safety and operational excellence, and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing," Methanex CEO Rich Sumner said. The deal is expected to close in the first half of 2025. The transaction has been approved by the boards of directors of the two companies and is now awaiting certain regulatory approvals and other closing conditions. The transaction is also subject to approval by a simple majority of the shareholders of OCI. The largest shareholder of OCI, has signed an agreement to vote for the transaction. By Steven McGinn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
East-west marine biodiesel spread near six-month low
East-west marine biodiesel spread near six-month low
London, 6 September (Argus) — The east-west marine biodiesel spread narrowed amid firm demand for the B24 blend in Singapore and lacklustre spot marine biodiesel demand in northwest Europe in recent sessions. The east-west marine biodiesel spread — the premium held by B30 used cooking oil methyl ester (Ucome) dob ARA to B24 Ucome dob Singapore — was marked at $47.50/t on 5 September, its narrowest since 19 March. The spread narrowed amid a noted increase in demand from Asian-based shipowners who embark on voyages to Europe ahead of the implementation of FuelEU Maritime regulations in Europe next year — according to market participants. The latter had also reported an increase in B24 demand in Singapore from containerships seeking scope 3 emissions rights that can then be passed on to cargo owners. Scope 3 emissions rights can be obtained on a mass-balance system, allowing shipowners flexibility with regards to the port at which a blend can be bunkered. Argus assessed B24 dob Singapore prices at an average of $720.70/t on 1 July–5 September this year, compared with $757.70/t on 8 February–28 June following the launch of the B30 Ucome dob ARA price on 8 February. Consequently, the east-west marine biodiesel spread was marked at an average of $95.34/t on 1 July–5 September, compared with $74.57/t on 8 February–28 June. A wider east-west spread would incentivise shipowners to opt for the B24 blend in Singapore rather than ARA, when operationally viable, to meet the voluntary scope 3 demand from their customers. Rising demand in the Singapore bunkering hub was further supplemented by higher sales of marine biodiesel blends at the port. According to official data released by the Maritime and Port Authority of Singapore, sales of marine biodiesel blends in the second quarter of the year were marked at about 161,400t — higher by 34,500t from the previous quarter. This was also higher by 52,600t from the second quarter of last year. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Idemitsu completes biofuel trial for bunkering vessels
Idemitsu completes biofuel trial for bunkering vessels
Tokyo, 5 September (Argus) — Japanese refiner Idemitsu has completed a test of mixed biofuel using fatty acid methyl ester (Fame) for bunkering vessels in the Hokkaido area ahead of commercial use. Idemitsu carried out a trial for 10 months starting in September 2023, using a 24pc Fame mixture of used cooking oil collected from convenience stores in Hokkaido with existing marine fuel oil. The mixed biofuel can be used in the same applications as existing marine fuel oil without any changes to equipment specifications or operating conditions in cold climates, Idemitsu said. Mixed biofuel is able to cut 20pc of carbon dioxide compared with existing marine fuel oil. But there has been difficulty in using it in sub-zero temperatures, which results in solidification and oxidation. Idemitsu will increase use of the bio-mixed marine fuel to areas other than Hokkaido, in its effort to achieve the country's 2050 decarbonisation goal. By Reina Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia sees large chickpea exports in Oct-Dec
Australia sees large chickpea exports in Oct-Dec
Sydney, 5 September (Argus) — A bumper chickpea crop is filling up capacity at Australia's Queensland and New South Wales grain terminals at the start of the 2024-25 shipping year. GrainCorp shipping stem shows 19 slots loading approximately 270,000t of chickpeas in October-December from its Mackay and Gladstone export terminals. Only 230,000t of wheat is shown for loading in the same period from southern ports at Geelong and Portland. GrainCorp said in June it would only accept vessel nominations of chickpea shipments for elevation capacity at Mackay and Gladstone for October–December in anticipation of higher demand. The export programme in northern New South Wales (NSW) and Queensland is geared towards chickpeas for the start of the marketing year, some market participants said. Growers are not in a hurry to sell existing wheat because of the low current domestic prices — some near costs of production — and the high prices for chickpeas. Chickpeas prices were around A$1,050 compared with APW at approximately A$340 for delivery to Brisbane. But the large chickpea volumes could strain the local logistics and northern east coast export terminals, given the record crop and tight export window. This is especially so with India's suspension on tariffs on Desi chickpeas set to expire on 31 March 2025. The Australian Bureau of Agricultural and Resource Economics and Sciences forecasts chickpea production to reach 650,000t in NSW and 640,000t in Queensland in the 2024-25 (July–June) fiscal year. The NSW wheat crop is forecast to reach 11mn t and Queensland wheat crop is estimated at 2.1mn t in 2024-25. Competition for freight in northern NSW and Queensland, which is mainly by road, will drive resources to where they are most valuable, a market participant said. With margins on chickpeas exceeding wheat, that could limit capacity for wheat during harvest. In the near record harvest of 2021-22, Queensland exported 360,000t of grain in containers and 2.9mn t of grain in bulk, according to the Australian Competition & Consumer Commission. Chickpeas accounted for 270,000t of the bulk shipments. By Edward Dunlop Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more