Ethanol Powers Up: Strong Output, Surging Exports Drive U.S. Market Momentum

Key Highlights

• The USDA expects a remarkable corn harvest of **.* billion bushels, providing plenty of feedstock for food and fuel ethanol demand, as well as changing supply expectations.
• Ethanol exports were up *** from the week prior acknowledging overwhelming demand for ethanol globally and further adding to market positive momentum even after discounting downward pressure from domestic inventories.
• Legislative progress appears to be moving forward to boost year-round E** sales and reduce regulations, which may help spur growth for long-term consumption.

In the first half of September **** the U.S. ethanol market was very active, and had multiple directional movements from month to month, on the values of strong production numbers, export volume increases, and ongoing policy dialogues. Although ethanol remains a central feature of the domestic energy and agricultural economy, expanded supply-side fundamentals were still driving pricing parallel to macroeconomic signals. 

The U.S. Department of Agriculture (USDA)...