Ethanol Demand Strengthens Despite Mixed Production Signals Nationwide

Stronger fuel demand supports corn usage despite a steady production pace.

Farmland producing ethanol for the oil and gas industry. Railroad tankers cars lined up near a ethanol plant at sunset_Photo by photogrfx via AdobeStock_496174713.png

Photo by photogrfx via Adobe Stock

NASHVILLE, Tenn. (RFD NEWS)Ethanol markets showed stronger fuel demand this week, providing support for corn use even as longer-term production growth slowed slightly.

Data from the Energy Information Administration analyzed by the Renewable Fuels Association shows U.S. ethanol production rose 0.7 percent to 1.12 million barrels per day — about 46.96 million gallons daily. Output ran 3.1 percent above last year and nearly 5 percent above the three-year average. However, the four-week average slipped to 1.07 million barrels per day, equal to 16.51 billion gallons annually, signaling plants are not accelerating run rates aggressively yet.

Farm-Level Takeaway: Stronger fuel demand supports corn usage despite a steady production pace.
Tony St. James, RFD NEWS Markets Specialist

Gasoline demand jumped 5.4 percent to 8.75 million barrels per day — a key indicator of blending demand. Refiner and blender ethanol use increased 3 percent, and exports surged 29 percent to 177,000 barrels per day. Those gains point to improving domestic and foreign fuel consumption.

Ethanol inventories climbed 1.4 percent to 25.6 million barrels, though stocks remain below year-ago levels.

Related Stories
China is not one of our top suppliers of cooking oil, according to USDA ERS data, but does export a lot of used cooking oil to the U.S. for biofuel production.
Industry leaders say $11 billion in new investments could turn the tide as dairy producers face shrinking margins and growing uncertainty.
Export Inspections In Bushels Show Mixed Momentum Patterns
Expect firmer shop prices, leaner inventories, and selective hiring in ag-adjacent businesses — plan parts, service, and financing needs earlier.
U.S. Farmers Face Shifting Harvest Pace, Basis, and Input Costs
Lewis Williamson with HTS Commodities joined RFD-TV’s Market Day Report to share insight into what’s happening on the ground and in the markets.
Expect choppier basis and wider bids — hedge earlier, keep logistics flexible, and watch Argentina and India headlines for near-term opportunities.
Even in this strong market, some beef producers are leaving money on the table by not following proven marketing practices.
New U.S. fees on Chinese-owned and built ships took effect overnight, marking the latest escalation in maritime trade tensions between Washington and Beijing.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

The Cotton-4 are pushing hard for new value chain investments. Still, many U.S. cotton producers face unsustainable losses, and weakened regional textile capacity threatens the survival of the Carolina “dirt-to-shirt” supply chain.
Late harvest and tight supplies shape crop progress and agribusiness this week. Here is a regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture for the week of Dec. 1, 2025.
Cargill’s commitment to keep plants open helps preserve competition as Tyson removes capacity amid historically tight cattle supplies.
Fair market value shapes taxes, transitions, lending, and sales, making accurate valuation essential for long-term planning.
SDRP Stage 2 now helps producers recover shallow, uninsured losses from major 2023–2024 disasters, with streamlined sign-ups open through April 30.
Tyson’s capacity cuts weaken local basis, tighten kill space, and heighten dependence on imports, signaling more volatility for producers.