NASHVILLE, TENN. (RFD NEWS) — Ethanol is taking a larger share of the U.S. gasoline market, strengthening domestic corn demand as higher blends gain traction. The Renewable Fuels Association says federal energy data show the 12-month average ethanol blend rate reached a record 10.58 percent.
Average ethanol content topped 11 percent for a second consecutive month in June. Most gasoline remains E10, but increased use of E15 and E85 is pushing the national blend rate higher.
The group says ethanol has traded at a wholesale discount of $1 per gallon or more to gasoline blendstock this year, helping improve blending economics while Renewable Fuel Standard credits provide additional value.
For corn producers, higher blend rates translate into additional ethanol demand without requiring higher overall gasoline consumption. California is also preparing to introduce E15, potentially adding another large fuel market.
Further growth could depend on retail infrastructure, gasoline demand and whether Congress permanently allows year-round E15 sales nationwide.
