While Traditional Ag Exports Struggle, Dried Distillers Soar

(WASHINGTON, DC) While many commodities are suffering from weaker export sales. However, exports of dried distillers grains (DDGS), the animal feed co-product generated by ethanol plants, intensified in May. According to date from the Renewable Fuels Association (RFA). DDG exports from the United States yielding an 11 percent increase and breached one million metric tons (mt) for the first time this calendar year. Mexico is the top international customer after increasing its sales by 25 percent over the previous month, representing a 27-month high. After a quiet April, Turkey returned to the U.S. market and became the second-largest customer of the U.S. while South Korea, Vietnam, and Indonesia wrapped up the top five export destinations for DDGS. The top ten largest customers purchased 85 percent of all exported U.S. DDGS in May, while 24 other countries accounted for the remaining sales. Year-to-date exports stood at just under 4.4 million mt, implying an annualized export total of more than 10.5 million mt.