News & Events
The U.S. Grains Council (USGC) and its industry partners sought to dispel myths about U.S. ethanol and open the door for the renewable fuel in the Japanese market this week at a workshop held in Tokyo for energy officials.
U.S. Department of Agriculture Acting Deputy Secretary Michael Scuse is planning a mission to Mexico next week to promote U.S. ethanol as a cleaning burning, renewable fuel source. U.S. Grains Council Director in Mexico Ryan LeGrand will accompany the mission as it examines potential for exports there.
This week’s U.S. Grains Council (USGC) Chart of Note illustrates a growing global interest in U.S. sorghum among a diverse group of markets.
While China remains the top market for U.S. sorghum - with more than 5.9 million metric tons (232.3 million bushels) sold to that country as of May 5 - other, non-traditional markets like Pakistan, Venezuela and Colombia have also shown their interest in this coarse grain during this marketing year. Combined, these three markets have purchased more than 295,000 tons (11.6 million bushels) of U.S. sorghum as of May 5.
As Mexico works to implement energy reforms, the U.S. Grains Council’s (USGC’s) staff there has been working to educate end-users and energy policymakers on the advantages of using ethanol as an oxygenate in fuel.
Last year, Pemex announced its plan to introduce a first-ever pilot program to blend gasoline with ethanol. Since then, it has awarded a few contracts to local ethanol plants, though the relatively small-scale Mexican ethanol industry makes imports seem necessary to meet the country’s immediate fuel ethanol blending needs. This will likely create new opportunities for U.S. exports of ethanol to the market.
The growing interest for ethanol in the Asia-Pacific region is driven in part by ever-growing environmental concerns, especially those related to rising greenhouse gas (GHG) emissions and deteriorating air quality, the direct results of rapidly-rising fossil fuel consumption across the region.
The U.S. Grains Council (USGC) and USDA’s Foreign Agricultural Service (FAS) hosted the first of two free workshops on how to use the GSM-102 financing program to facilitate the export of U.S. ethanol this week in Chicago.
New business transactions usually require a letter of credit prior to procurement or vessel loading. As a trading relationship develops through consecutive transactions, buyers with a strong balance sheet may no longer need a letter of credit.
Data from the U.S. Department of Agriculture’s (USDA’s) Economic Research Service (ERS) indicates U.S. ethanol production during the 2014/2015 marketing year reached a record volume of 14.7 billion gallons (55 billion liters), which is up 3.9 percent from the previous year. Exports for the same time period were 872 million gallons (3.3 billion liters).
Worldwide demand increases for ethanol, paired with new government and taxation policies put into effect every year, alter ethanol trade on all levels.