Ethanol Output Edges Higher As Demand Softens Modestly

Ethanol plants kept production steady, but softer gasoline demand and lower exports may limit near-term momentum.

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) — According to EIA data analyzed by the Renewable Fuels Association, U.S. ethanol production moved slightly higher in the week ending May 1, even as gasoline demand and exports eased. Output rose 0.8 percent to 1.02 million barrels per day, equal to 42.71 million gallons daily. That was 0.3 percent below the same week last year but 3.4 percent above the five-year average.

The longer-term pace was weaker. The four-week average ethanol production rate slipped 2.2 percent to 1.05 million barrels per day, equal to an annualized 16.09 billion gallons. Ethanol stocks also inched higher, rising 0.5 percent to 26.0 million barrels.

Inventories were 3.3 percent above a year ago and nearly 12 percent above the five-year average. Stocks increased in every region except the East Coast, showing supply remains comfortable even with production still running near the one-million-barrel mark.

On the demand side, gasoline supplied fell 3.2 percent to 8.81 million barrels per day, a four-week low. Refiner and blender net ethanol inputs also declined 1.6 percent, while exports dropped 18.2 percent to 139,000 barrels per day.

Farm-Level Takeaway: Ethanol plants kept production steady, but softer gasoline demand and lower exports may limit near-term momentum.
Tony St. James, RFD News Markets Specialist
Related Stories
Lamb prices have seen a surprising surge driven by a tight supply and increasing demand in non-traditional markets.
Farmers should watch for soybean export rebounds with harvest, while corn and wheat shipments remain strong and sorghum demand struggles.
Record U.S. sorghum crop faces weak demand as China slashes imports, while corn farmers warn of rising costs, shrinking margins, and global market pressures.
Ethanol producers face a widening opportunity window as aviation and marine fuel markets expand, with the potential to add billions in demand if policy and certification align.
Corn and beef exports showed strong momentum, cotton sales surged, and soybean sales held steady, though China remains absent from the U.S. market.
Cheaper freight is helping exports move, especially corn, but weaker soybean demand looms large.

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:

Margin Protection and the new MCO add county-level margin tools — with earlier price discovery, input cost triggers, and high subsidy rates — to complement on-farm risk plans for 2026.
For aging operators and their rural neighbors, staying socially engaged is a practical strategy to preserve decision-making capacity and farm vitality.
Until a phased reopening is inked, plan for tighter feeder availability, firmer basis near border yards, and continued reliance on domestic and Canadian sources.
Set targets and use forwards, futures, or options to manage downside while preserving room for rallies.
Bangladesh’s buying surge offers temporary relief for U.S. farmers facing weaker Chinese demand, highlighting how global politics can reshape export outlets overnight.
RFD-TV Markets Expert Tony St. James breaks down the USDA’s newly unveiled plan to rebuild the US beef herd and the industry’s spectrum of responses to it.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.