U.S. ethanol exports totaled 59.7 million gallons in February, up 4% from January, according to government data released today. Exports of undenatured (non-beverage) ethanol jumped to 21.8 million gallons in February, nearly double the amount shipped in January. Meanwhile denatured ethanol exports were 37.9 million gallons, down from 45.4 million in January. Because this ethanol is not blended with gasoline prior to exportation, it does not qualify for the Volumetric Ethanol Excise Tax Credit (VEETC), also known as the blender's credit. Through the first two months of the year, ethanol exports stand at 116.9 million gallons. If the current pace is maintained all year, exports for 2011 could total more than 700 million gallons (compared to 400 million in 2010). Canada was the top destination for denatured ethanol in February, receiving some 15 million gallons. The United Arab Emirates (UAE), United Kingdom, and Brazil, in order, were other leading destinations for denatured product in February. As for undenatured ethanol, more than 11 million gallons landed in the Netherlands in February. The second- and third-leading destinations for undenatured ethanol were the OPEC nations of UAE and Nigeria. Distillers grains exports for February totaled 619,744 metric tons, down 13% compared to January, but slightly above February 2010 totals. China was the leading importer of U.S. DDGS with 110,976 metric tons. Exports to China were down 14% from January and less than half of the amount shipped as recently as October 2010. Erosion of exports to China is likely the result of the nation's ongoing anti-dumping investigation against U.S. DDGS. Mexico was the second-leading destination, receiving 102,450 metric tons in February. This was less than half of the 223,000 metric tons shipped to Mexico in January. Canada, Spain and Vietnam rounded out the top five.