U.S., Brazil ethanol exports rise as fuel buyers diversify amid Hormuz crisis

U.S. and Brazilian ethanol exports are set to climb in 2026 as fuel-consuming countries seek additional supply sources during the prolonged Strait of Hormuz crisis, industry representatives told Reuters on May 15, 2026. U.S. ethanol exports rose 20% year over year to 638 million gallons in the first quarter after record shipments in 2025, according to the Renewable Fuels Association. Brazil’s exports could more than double to 2.2 billion liters, or 581.1 million gallons, in the 2026/27 trading season that began in April 2026, consultancy Datagro said. Datagro said Brazil’s ethanol output will rise by about 4 billion liters to a record 41.4 billion liters in the new season. The RFA said U.S. production capacity is expected to increase by 1 billion gallons between May 2027 and November 2027. Higher blending rates in Asia and energy-security concerns are supporting demand for ethanol as an alternative liquid fuel.