Ethanol Prices Remain Stable in the American Market Entering December 2023

Ethanol prices in the American territories, Specifically the USA and Brazil, have remained unchanged in the week ending December 8. Ample supply and strong overseas demand have played a major role in maintaining the stability of the Ethanol market.

Average US Fuel Ethanol has been up by more than 5 percent as of December 1, according to EIA data released on December 7. While Ethanol stocks have been up, US Ethanol exports have been down by 50 percent. On December 8, Ethanol in the USA was trading at the same price as last week, which is USD 655 per metric tonne, FOB Texas. In Brazil, Ethanol prices have remained unchanged at USD 695 per MT, FOB Santos.

US fuel Ethanol production on December 1 has been averaged at 1.076 million barrels per day, up 64,000 barrels per day when compared against the 1.011 million barrels per day volume reported last week. Compared to the previous week's volume, exports have been down 76,000 barrels per day and averaged 75,000 barrels per day the week ending December 1. Weekly Ethanol export data has not been available on EIA's report for the same week of last year. No Ethanol imports have been reported for the week ending December 1.

During the earnings call of One Earth Energy, Director Zafar Rizbi discussed its carbon capture and sequestration (CCS) project in its Illinois Ethanol plant, which has been under development. This project has been waiting for US EPA approval of a class VI permit for carbon injection.

Clariant, a major leader in the specialty chemical sector, announced on December 6 that it has decided to shut down its Podari plant of Bioethanol production in Romania and downstream related activities of Biofuels & Derivatives in Munich, Germany.

According to data reported by the USDA Foreign Agricultural Service, the US exported 116.09 million gallons of Ethanol and 886,705 metric tons of distiller's grains in October. And Exports of both products have increased when compared to October last year.

The US Ethanol was exported to about three dozen countries in October. With 120.39 million gallons of US Ethanol, Canada has been reported as the top destination, followed by 13.68 million gallons of Ethanol to India and the United Kingdom at 12.65 million gallons.

The Brazilian Sugarcane Industry Association, UNICA, also announced an increase in sugarcane processing on November 1. In the south-central region of Brazil, mills have processed 35 million tonnes of sugarcane during November's first half, 30 percent up when compared to the same period last year. Ethanol produced from corn has accounted for 278.5 million liters, which is 16% of total production, up 45 percent compared to last year.