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
Dr. David Anderson with Texas A&M University AgriLife Extension discusses how geopolitical tensions and the Middle East, along with export disruptions in the Chinese market, will shape cattle markets in the months ahead.
Energy shifts influence diesel and fertilizer costs.
OHFB President Bill Patterson shares an update from Washington on the group’s policy priorities and the issues shaping agriculture ahead of the 2026 planting season.
Ben Kurtzman with American Farmland Trust discusses the growing pressure on farmland and ranchland and the steps being taken to help conserve farms and ranches across the country ,as unrest in the Middle East adds more obstacles for producers.
Weather remains the primary driver for wheat price outlook.
Tidal Grow’s AlignN delivers encapsulated nitrogen to leaves, boosting in-season response, yield gains, and farm profits.

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:

USDA’s March WASDE report leaves U.S. corn, soybean and wheat ending stocks unchanged while adjusting global production estimates for South America.
Tariff revenues rarely flow directly back to farmers.
U.S. Agriculture Faces Mixed Weather, Market Pressures
Strong exports and production support ongoing corn demand.
Strong consumer demand supports livestock market outlook.
Farm legal expert Roger McEowen discusses a new rail antitrust case in Kansas and its potential implications for farmers as rail upgrades signal continued export-driven demand for logistics.