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
Prepare for tighter cash flow, delayed capital buys, and policy-driven risk management this fall.
Jed Bower, the incoming president of the National Corn Growers Association, joined us for his sector’s perspective on the ongoing government shutdown.
Treasury Secretary Scott Bessent last week said an announcement would be made on Tuesday. However, that self-imposed deadline has now passed.
George Baird, with the American Society of Farm Managers and Rural Appraisers (ASFMRA), joins us with updates on how this year’s rice harvest is shaping up.
Crop insurance remains a vital tool for managing climate-driven risk.
Expect firm demand for dependable HRS and SW, steady movement in HRW, more sorting on SRW, and selective bids on durum until full milling results are released.
Dr. Todd Davis, Chief Economist with the Indiana Farm Bureau, shares a snapshot of his state’s harvest conditions and insights from producers.
Market analyst Kevin Huddleston said news of trade deals could rebound cotton prices in late fall, and producers need to be ready to strike deals.
Shaun Haney, host of RealAg Radio, joined us to break down the latest data on Canadian farmland values and share insights on how it impacts producers.

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:

According to November’s Cattle on Feed Report, Nebraska now leads the nation in cattle feeding as tighter supplies continue to reshape regional market power and long-term price dynamics.
Higher rail tariffs and tighter Canadian supplies will keep oat transportation costs firm into 2026.
Industry support ensures continued funding for mango marketing and research, helping sustain long-term demand growth.
Lower U.S. and Mexican production means tighter sugar supplies and greater reliance on imports headed into 2026.
Tyson’s closure reflects deep supply shortages in the U.S. cattle industry, tightening packing capacity, weakening competition, and signaling more volatility ahead for cow-calf producers and feedyards.
Lower tariff rates and new rail-service proposals may improve corn movement efficiency during early-season marketing.