The US exported 656.3 million liters (173.3 million gallons) of ethanol in December, 77% higher than a year ago and up 61.7% month on month, Department of Agriculture data showed Tuesday.
It was the highest monthly export total on record.
December's volumes surged as lower US prices translated to increased exports, as well as market participants making moves before the end of the year.
Brazil, which had slowed its imports in the fall due to a newly introduced tariff, returned to the top spot as the largest importer in the month.
Not only did December exports break the record for the highest month, but total 2017 exports easily broke the previous yearly record set in 2011.
Total ethanol exports in 2017 were 5.17 billion liters, or 1.36 billion gallons.
Brazil, Canada and China were the top destinations for fuel ethanol in December, taking 183.8 million liters, 87.5 million liters and 83.9 million liters, respectively.
Canada is a consistent source of demand for US ethanol, frequently topping the list of buyers of US ethanol. China's return to the market came as a surprise for some after it raised its ethanol import tariff to 30% at the beginning of 2017. But low prices in the US and high prices in China opened the arbitrage late in the year, encouraging a renewed trade flow between the countries.
The Chinese government has set a goal of a nationwide 10% ethanol blending mandate by 2020. To reach that goal the country would need to continue increasing ethanol imports as well as domestic production.
S&P Global Platts Analytics had forecast US fuel ethanol exports to reach 4.92 billion liters in 2017. In 2018, S&P Global Analytics forecasts US fuel ethanol exports will reach 5.4 billion liters, up 10% from 2017.
Archer Daniels Midland CEO Juan Luciano also shared a bullish outlook for 2018 exports in the company's fourth quarter 2017 earnings call Tuesday.
"Brazil and China are coming back to being importers from the US," said Luciano during the call. "We will have them being big importers for the next two to three years from North America."
He added that ADM expects 1.6 billion-1.7 billion gallons of ethanol exports in 2018. Top five destinations of US fuel ethanol in 2017.
