Export demand is playing an increasingly larger role in the energy markets. Since 2010, those exports have more than doubled with very strong growth occurring in the liquid fuel commodity markets. Consider that shipments of ethanol are projected to hit 1.2-1.3 billion gallons this year and grow even further in 2018 against about 1.1 billion gallons last year. China was the largest export market in 2016 before it raised its tariffs. Owing to low prices, though, U.S. ethanol shipments to that country are picking up again in late 2017 despite that. Also, China’s future ethanol demand is expected to be driven by an increased blending mandate. The same can be said for Canada, which has a national current mandate of 5 percent. Provincially...

TAGS – Biofuels, Energy, Asia, China, North America