NASHVILLE, Tenn. (RFD NEWS) — U.S. ethanol markets opened 2026 with mixed signals, as domestic production and blending slowed while export demand remained a clear bright spot. Weekly data from the U.S. Energy Information Administration, analyzed by the Renewable Fuels Association, show ethanol production fell 2.0 percent to 1.10 million barrels per day in early January, slightly below last year but still well above the three-year average.
Domestic demand softened alongside lower gasoline consumption. Ethanol blending by refiners dropped sharply, hitting the lowest level since early 2023, while implied gasoline demand declined nearly five percent week over week. Ethanol stocks increased modestly, though inventories remain below both last year and the three-year average, suggesting supply is not burdensome.
In contrast, exports provided strong support. October ethanol exports surged 25 percent to a record 185 million gallons, led by Canada and by solid gains across Europe and Asia. Year-to-date ethanol exports are running 13 percent ahead of last year. DDGS exports were mixed, with steady demand from Mexico offset by weaker shipments to parts of Asia.
Farm-Level Takeaway: Export strength continues to underpin ethanol and corn demand, even as domestic fuel use shows seasonal softness.
Tony St. James, RFD News Markets Specialist
API said it stands ready to work with Congress to develop a balanced approach to E15 legislation that promotes fuel choice, supports investment certainty, and contributes to a stable and fair marketplace for American consumers.
October 21, 2025 12:39 PM
·
Lawmakers are pressing for answers on how Washington’s “managed trade” approach — keeping leverage through long-term tariffs — will affect farmers, global markets, and future export opportunities.
October 21, 2025 12:17 PM
·
In the meantime, Senate Majority Leader John Thune is asking that farmers be allowed to use marketing assistance loans to help stay afloat.
October 21, 2025 11:57 AM
·
The USDA’s latest Hogs and Pigs Report caught some analysts off guard. Inventories came in lower than expected, signaling tighter supplies ahead, even as producers return to profitability this year.
October 20, 2025 04:06 PM
·
Lyndsey Smith with Real Ag Radio joined RFD-TV to share a Canadian perspective on the discussions.
October 20, 2025 03:30 PM
·
Bioethanol is becoming a global standard. For growers, that boom comes as drops in Mississippi River levels and in soybean demand occur in tandem, leaving barge space for corn and wheat.
October 20, 2025 01:32 PM
·
