First-quarter US ethanol shipments rose 20% year-on-year, while Brazil’s exports may double in the new trading season.
US ethanol exports reached 638 million gallons in the first quarter, a 20% increase from the same period last year, driven by heightened global fuel demand amid supply concerns. Brazil’s ethanol exports are projected to rise to 2.2 billion liters in the 2026/27 season, up from 1 billion liters previously, as countries diversify fuel sources.
The surge follows last year’s record shipments and reflects ongoing efforts to secure alternative fuel supplies. Industry representatives cite geopolitical tensions, including the Strait of Hormuz crisis, as a key factor behind the increased demand. The trend supports prices for corn and sugarcane, benefiting producers in both countries.
The developments revive discussions about a global ethanol market, an initiative previously explored by US and Brazilian leaders in 2007. Analysts suggest the current demand spike could accelerate those plans.