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
Ethanol and corn groups are not hiding their disappointment over new reports that the bill to allow year-round E15 sales failed as Congress forges ahead on government funding, with another shutdown looming.
Oil-led rallies can move soybean prices quickly, but sustained gains will require continued strength in soybean oil and broader biofuel demand signals.
Analysts say a Supreme Court decision on tariffs could reshape protein markets, strain U.S.-China trade, and force farmers to rethink global demand strategies.
President Donald Trump speaks at the World Economic Forum in Davos, addressing SNAP spending, tariff threats against Europe, market reactions, and the upcoming USMCA review.
Corn and wheat exports remain a demand bright spot, while soybeans are transitioning into a more typical late-winter shipping slowdown.
Despite rising costs and growing food insecurity, meat demand remained strong in 2025 as higher-income consumers offset cutbacks elsewhere. Economists break down the K-shaped economy, upcoming USDA cattle reports, livestock production outlooks, and renewed debate over beef imports and country-of-origin labeling heading into 2026.

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:

Reduced winter placements indicate tighter fed cattle supplies and greater leverage during peak-demand months.
Federal nutrition policy is signaling a stronger demand for whole foods produced by U.S. farmers and ranchers. Consumer-facing guidance favors animal protein, but institutional demand may change little under existing saturated fat limits.
Farmer Bridge payments are being used primarily to reduce debt and protect cash flow, not drive new spending. Curt Blades with the Association of Equipment Manufacturers joined us to provide insight into the ag equipment market and the factors influencing sales.
Rail strength is helping stabilize grain movement, but river and export slowdowns continue to limit overall logistics momentum.
Retail pricing confirms tight cattle supplies and supports continued leverage for producers, reinforcing the need for disciplined risk management.
Higher ethanol blend rates translate directly into stronger, more durable corn demand if regulatory momentum holds.