UNITED STATES — Brazil is the top destination for U.S. ethanol exports surpassing Canada back in 2016.
According to AgriNews, the U.S. exported 267 million gallons to Brazil and 259.3 million gallons to Canada. 179.2 million gallons were exported to China, making it the third largest for U.S. ethanol exports.
Corn ethanol exports to Brazil were encouraged by that country’s 27 percent fuel ethanol mandate and its zero import tariff for ethanol, which remains in effect through 2021.
AgriNews also reports that Brazil is investing in more corn ethanol production which could hinder the U.S. exports to that country.
“…as far as the potential for the U.S. increasing corn exports to Brazil in the years to come, I would be cautious with that,” said Pedro Dejneka, a partner at Chicago-based MD Commodities. “I’m not an ethanol expert, but it’s something we have to pay attention to. Brazil’s got to much sugar right now, they’ve got too much corn, they’ve got to find a way to burn it and they’re going to burn it in ethanol.”