Gulf Coast leads the way in US ethanol export surge: EIA

US ethanol exports jumped through November 2017, with shipments from the Gulf Coast ramping up dramatically month-on-month, data from the Energy Information Administration showed Wednesday.

Gulf Coast exports were up 27% week-on-week to just over 1.9 million barrels, with overall US exports rising 15.7% to 2.6 million barrels.

In the second data release on the day for the US ethanol industry, increased exports are helping to underpin stronger than expected production figures for the sector, which could have a knock-on effect for corn demand.

Earlier Wednesday, the EIA had also revealed ethanol production figures for the week ending January 26, which showed production remained comfortably above a million barrels a day and is set to deliver greater-than-anticipated demand for US corn.

Currently the EIA expects 5.525 billion bushels of corn to be consumed in the 2017/18 marketing year by the ethanol industry, with current production levels five months into the marketing year already poised to overtake that estimate.

Exports from the US East Coast and Midwest both declined as strong regional domestic demand soaked up supply; East Coast exports falling to a trickle of 8,000 barrels – a 95% fall month-to-month according to the data.

But West Coast exports climbed by close to 80% to stand at 161,000 barrels.

Exports to Brazil, China, India, Jamaica, Nigeria, South Korea, the Philippines and Saudi Arabia all showed significant increases between October and November.

For Brazil, the 670,000 barrels shipped out is the largest in four months, and comes as fuel prices have increased domestically. This has left the Brazilian government to mull the possibility of relaxing import duties on US ethanol to alleviate higher fuel prices.