US, Brazil see jump in ethanol exports as consumers seek to boost fuel supplies

The United States and Brazil, the two largest producers of ethanol, are looking ‌at a jump in exports of the biofuel this year due to movements by several consuming countries to increase their sources of fuels as the Strait of Hormuz crisis drags on.

The U.S. is seeing a jump of 20% in ethanol exports so far this year, on top of ​record shipments last year, while Brazil could more than double its foreign sales in the new trading season (2026/27) ​that started in April, representatives for the biofuels industry told Reuters this week.

The new market would ⁠be a blessing for corn producers and processors in the U.S., as well as for cane growers and mills in ​Brazil, as they increase production and boost demand for grains and sucrose, supporting prices for those markets.

It would be a new ​chance for an old plan by the two countries to create a global ethanol market that was once discussed and agreed to by U.S. President George W. Bush and Brazilian President Luiz Inacio Lula da Silva during a state visit by the American to Brazil in 2007.

U.S. ethanol ​industry group RFA says exports of 638 million gallons in the first quarter are 20% higher year-on-year.

Brazil’s consultancy Datagro estimated ​ethanol exports will reach 2.2 billion liters (581.1 million gallons) in the new season from 1 billion liters in the previous.

“There are countries around ‌the ⁠world that are looking to get their hands on any source of liquid fuel they can find,” said Geoff Cooper, RFA’s chief executive, adding that U.S. ethanol prices are currently competitive compared to gasoline.

Several countries, particularly in Asia, are raising ethanol blending rates in gasoline, Datagro’s chief analyst Plinio Nastari said.
“Some of them have some production, but they will need to import ​part of that ethanol,” he ​said.

Even if there is a ⁠deal soon between Iran and the U.S. to reopen Hormuz, renewable energy makers believe the higher demand is here to stay, due to energy security.

The following chart tracks monthly Brazilian ethanol export volumes, based on container throughput data compiled by Datamar:

Ethanol Exports | Jan 2023 – Mar 2026 | TEUs

Source: DataLiner (click here to request a demo)

Countries around the world want to reduce ​their dependence on one big source of energy such as the Middle East, where tensions ​will likely continue ⁠high even if there is a deal, said Shameek Konar, head of energy at Ara Partners, a private equity firm investing in renewable energy projects in the U.S., including biofuels.

“This conflict brought energy security in the focus of every policy maker in the world,” ⁠he ​said during a presentation at the BMO Farm to Market Conference in New ​York.

Brazil will increase ethanol production by some 4 billion liters in the new season to a record 41.4 billion liters, said Datagro.

The U.S. will add ​1 billion gallons of ethanol production capacity in 12 to 18 months, said RFA.

Source: Reuters

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