India set to increase ethanol imports as US exporters look to new routes
India is on course to import more ethanol than ever before in 2017, with the U.S. and Brazil together filling more than 90% of the need. Meanwhile, producers are exploring the idea of shipping ethanol to the Asian ethanol market via the U.S. West Coast. Keep reading for these headlines and more from this week in ethanol news.
Report shows increase in corn planting, adding to market volatility
U.S. farmers are planting more corn and soybeans, with corn planted acres up 7% and soybeans up 1% this year. This was well above the average prediction of major grain analysts, adding to a volatile market over the past week. This is the third largest planted corn acres on record since 1944. And, if weather cooperates, farmers may actually be on track to raise one of the largest corn crops on record after switching over fewer acres than expected to soybeans. But while we’ve seen corn prices fall, ethanol prices stayed relatively steady, helping to improve margins for ethanol exporters. Learn more at The Corn and Soybean Digest.
US West Coast emerges as ethanol supplier for Asian importers
The U.S. West Coast may become a new export outlet for ethanol cargoes to Asia as competition heats up among traders and producers to capture more market share in the region. While ethanol typically ships to Asia from the southern Gulf Coast, the West Coast lets vessels avoid both a detour via the Panama Canal or around Africa as well as the congestion occasionally found in Gulf Ports. And, sources at the Wiz Ethanol Asia Conference last week say at least one ship is already taking the new route. Read more at Platts.
Report: India expected to import more ethanol in 2017
A decline in Indian sugarcane acres during the past two growing seasons is expected to result in a decline in the country’s ethanol production in 2017, a report filed with the USDA Foreign Agricultural Service’s Global Agriculture Information Network said. During the past decade, India’s ethanol consumption has grown from 1.8 billion liters to 2.4 billion liters, and next year is expected to rise to 2.5 billion liters. Since 2011, sales of U.S. ethanol to India have grown to 72% of the market share while Brazil sales have fallen 20%. Read more at Ethanol Producer Magazine.
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