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
A more independent UAE could add long-term pressure and volatility to energy markets, affecting fuel and fertilizer costs.
Clean power growth remains strong, but slower deal-making could affect future rural energy and land-use opportunities.
Higher biofuel mandates boost long-term crop demand, but a tighter D4 market may pressure biofuel feedstocks and pose new soybean oil demand risks.
John Mays with Central Life Sciences joins us to discuss the importance of pest management ahead of wheat storage and how protecting grain quality can support stronger marketing opportunities.
University of Arkansas researchers are working to help farmers reduce grain waste and get more value out of their crops.
According to a tweet from Rep. Anna Paulina Luna, the full House vote on the Farm Bill will be held until lawmakers return from recess.

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 farm bill is still moving, but the toughest amendment fights were pushed into today’s session. ASA President Scott Metzger joins us to discuss the risks of tariff actions on soybean exports, concerns over trade policy and production costs, and the importance of Farm Bill updates.
ASFMRA’s Luke Worrell joined us to discuss farmland market trends, insights from the Illinois Land Values Conference, changing buyer and seller demographics, and the latest outlook on planting progress.
EPA’s approval gives citrus growers a new disease-fighting tool against greening at a time when production losses remain severe.
Higher input costs are making flexible marketing plans and updated break-even targets more important.
Data center growth can bring opportunities, but competition for land, water, and power will matter more in rural areas.
Rail rulings, export terminal access, and equipment rules are becoming bigger factors in grain shipping costs and reliability.
Agriculture Shows
This high-yield corn contest showcases real-life Corn Warriors dealing with elements that every farmer knows well. Get an authentic look at what it takes to compete in a high-yield corn contest, and see who will take the title of Corn King.
As the trusted voice of the U.S. cattle and beef industry, the National Cattlemen Beef Association strives to share timely, relevant news. NCBA’s “Cattlemen to Cattlemen” is the leading TV show for beef producers to receive cattle industry news, education, and information.
America’s Heartland brings positive, heartfelt stories about American agriculture to viewers in both urban and rural areas.
Hosted by Pam Minick, “The American Rancher” focuses on the people and places that make ranching an American lifestyle. This half-hour magazine format series features livestock producers and their ranches, animals, and ranching practices.