The Renewable Fuels Association is also concerned with the record corn crop, calling this month’s WASDE report a wake up call.
“Demand is not keeping up with the corn supply, period. And we knew that was a problem heading into harvest. And then, of course, we saw these huge numbers printed yesterday by USDA, and we think that should serve as a wake-up call to both Congress and the administration,” said RFA’s Geoff Cooper.
Cooper is calling on Congress to remove the regulatory barriers to higher ethanol blends. He also wants to see updates to pump labeling, saying just a little work could open the gates for U.S. ethanol.
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Market reaction was bearish for corn and soybeans, with analysts noting that abundant supplies amid tepid demand could keep price pressure on agricultural commodities.
Traders are keeping a close eye on China’s soybean purchases as markets track export sales, shipments, and progress toward the ‘magical’ 12 million ton target promised last year.
As domestic production and blending slowed, export demand remained a clear bright spot.
Higher ethanol blend rates translate directly into stronger, more durable corn demand if regulatory momentum holds.
Strong export demand supports feed grain prices, but drought risk and seasonal patterns favor disciplined early-year marketing.
Corn export strength remains a key demand anchor, while China’s continued involvement in soybeans and sorghum bears close watching for price direction.
Strong crush demand and rising ethanol production are pressuring feedstocks, as traders monitor storage risks and supply chain uncertainty and await the upcoming January WASDE report.
Strong ethanol production and export trends continue to support corn demand despite seasonal fuel consumption softness.
A look at the legislative year ahead as lawmakers return to Washington with a slate of trade concerns to tackle in 2026—from new Chinese tariffs on beef imports to the USMCA review this summer.
