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
American soybean and corn leaders, along with Canada’s AgriFood sector, testified before the U.S. Trade Representative’s Office in support of the trade pact between the U.S., Mexico, and Canada.
The FAO Food Price Index for November fell by more than 1 percent in November, marking the third straight month of declines.
Higher ocean freight raises export costs just as global grain competition intensifies.
Buying a real Christmas tree directly supports U.S. farmers facing rising import competition, long production cycles, and weather-driven risks.
Strong plant output and rising exports contrast with softer domestic blending demand, suggesting margins are poised for volatility.
Milk output is rising, but steep drops in Class I–IV prices are tightening margins 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:

Distillers dried grains (DDG) values follow corn and soybean meal trends, with ethanol grind and feed demand shaping costs into early 2026.
Pork producers should prioritize health and productivity gains, hedge feed and hogs selectively, and watch Brazil’s export pace and China’s sow policy for price signals.
For tight margins, contract grazing leverages existing acres into new income streams and spreads risk. Here are some tips for row crop farmers looking to diversify.
Global nitrogen and phosphate prices remain high despite improved supply fundamentals, with limited Chinese exports and stronger fall applications tightening availability.
Record output, larger stocks, and softer exports point to a well-supplied domestic ethanol market as harvest progresses.
The Court may limit emergency tariff powers, complicating a key bargaining tool; ag could see shifts in input costs and export dynamics as China, Brazil, and India talks evolve.