U.S. Ethanol And DDGS Exports Start Year Strong

Strong exports support ethanol margins and corn demand.

Handling Grain Bard Waste DDGS for Sustainable Agriculture Applications_Photo by V.Semeniuk via AdobeStock_1424686711.jpg

Distiller Dried Grains (DDG)

LUBBOCK, TEXAS (RFD NEWS) — U.S. ethanol and dried distillers grains (DDGS) exports opened 2026 with solid movement, reinforcing steady demand for corn-based fuel and feed products across global markets. Ethanol shipments reached 212.1 million gallons in January — down 4% from December — but gains in key destinations supported overall trade flows and early-year momentum for producers.

Canada remained the top ethanol buyer, up 5% to 70.0 million gallons, with denatured fuel ethanol accounting for most shipments. Brazil tripled imports to 36.4 million gallons — the largest monthly purchase in nearly six years — while exports to the European Union fell 18% to a six-month low of 35.1 million gallons. Shipments declined to India and the Philippines but rose to Colombia, the United Kingdom, and Vietnam.

Trade shifts carry operational implications for ethanol plants and corn demand, especially as stronger South American buying offsets uneven demand elsewhere. DDGS exports climbed 13% to 1.01 million metric tons, led by Mexico, South Korea, and record purchases from Colombia, though shipments to Indonesia and Vietnam fell.

Regionally, Mexico remained the dominant DDGS buyer, with purchases exceeding 226,000 metric tons, while Turkey and the European Union posted notable gains. Canada and Southeast Asian markets showed mixed movement, reflecting changing feed demand and freight dynamics.

Looking ahead, evolving trade flows point to continued volatility driven by global feed demand, fuel-blending economics, and currency swings as U.S. exporters monitor shifting demand patterns.

Farm-Level Takeaway: Strong exports support ethanol margins and corn demand.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
For producers, the issue is diesel, freight, irrigation fuel, and input delivery.
Reduced slaughter numbers and stronger export demand are helping push livestock by-product values higher.
LSU economist Dr. Michael Deliberto says fewer planted acres could tighten supplies and support prices for producers.
Pre-filled Applications Available Online to Producers with a Login.gov Account

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Aimee Bissell discusses Iowa planting progress, weather conditions, fertilizer costs, and concerns over early crop development.
Farm CPA Paul Neiffer discusses SDRP payment limits and offers advice for those seeking higher limits.
Farmers are closely watching upcoming U.S.-China trade talks as rising fertilizer and diesel costs continue to pressure exports, margins, and rural economies.
Dr. David Anderson says lean beef demand and lighter cow culling are still giving cull cow prices room to push higher.
Stronger overseas demand for both fuel ethanol and feed co-products continues to reinforce corn use beyond the domestic market.
The inverted Choice-Select spread is not a strong warning sign in today’s tighter, higher-quality beef market, according to new analysis from Terrain.