RFA says US Exports of Ethanol, DDGS Rose in July

    

   NEW YORK (DTN) -- U.S. ethanol exports climbed substantially in July after 
sliding in the previous three consecutive months, according to an analysis of 
government data by the Renewable Fuels Association.

   The RFA said in a news release that denatured and undenatured ethanol 
exports totaled 25.2 million gallons in July, up 57 percent from June levels. 
In particular, denatured ethanol exports surged, with large volumes being 
imported once again by Brazil and the United Arab Emirates. 

   A total of 22.4 million gallons of denatured ethanol was exported in July, 
more than double the total from June. Canada continued to be the top U.S. 
export destination for denatured ethanol, importing 9.5 million gallons of 
product.

   Finland imported its first shipment of U.S. denatured ethanol this year, 
totaling 4.5 million gallons in July. Brazil, the Netherlands, and UAE rounded 
out the top five denatured ethanol importers for July. After importing U.S. 
ethanol early in the spring, Brazil and UAE did not import any U.S. product in 
May or June.

   Trades sources told Telvent DTN today that U.S. ethanol exports to the 
Netherlands were attracted by an open trans-Atlantic arbitrage and tight supply 
there, with spot ethanol trading today in Rotterdam at the equivalent of $2.93 
gallon, reflecting a premium of about 90cts over New York Harbor spot prices. 
Shipping costs were seen at around 18cts a gallon, with tariff charges at 48cts 
a gallon. 

   The RFA further said that U.S. exports of undenatured, non-beverage ethanol 
continued to slide in July. Only 2.7 million gallons of undenatured product was 
exported, down from 5 million gallons in June. Nearly 90 percent of undenatured 
ethanol exports went to Mexico.

   Total year-to-date ethanol exports for 2010 stand at 182.7 million gallons, 
suggesting exports continue at a record pace. Only once in the last 20 years 
has the U.S. exported more ethanol than it has through the first seven months 
of 2010, said the RFA. In 1995, the U.S. exported 197.5 million gallons of 
denatured and undenatured ethanol.

   Also, July marked a new monthly record for exports of distillers dried 
grains with solubles or DDGS, the livestock feed co-product generated by dry 
mill ethanol plants. The U.S. exported 886,300 metric tons of DDGS during the 
month under review.

   DDGS exports for the first seven months stood at 4.95 million metric tons 
compared to 5.65 million metric tons for all of 2009. Notably, more DDGS were 
exported in the month of July alone than in the entire year of 2004. 

   The U.S. ethanol industry is on pace to export 8.5 million metric tons of 
DDGS this year, equivalent to about 28 percent of expected DDGS production. 
China was the top destination for U.S. DDGS exports in July, accounting for 
nearly 40 percent of the total. Mexico, Turkey, and Canada were the second, 
third, and fourth-leading importers, respectively.

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