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.
Chris McGovern from Connected Nation joined us Tuesday to break down the findings and discuss their implications for rural America.
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