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
Heavy rains are wreaking havoc on Argentina’s farmland, leaving nearly 4 million acres at risk and delaying corn and soybean plantings in one of the world’s top grain export regions.
Ethanol exports are expanding on strong demand from Canada and Europe, while DDGS shipments remain broad-based and supportive for feed markets.
Dalton Henry, with U.S. Wheat Associates, joined RFD-TV to provide insight on what the pending trade frameworks may mean for American wheat growers.
Urea and phosphate see the biggest price relief from tariff exemptions, but nitrogen markets remain tight, and spring demand will still dictate pricing momentum.
Cattle and hog supplies continue to tighten while dairy output expands, creating a split outlook in which red-meat prices soften and milk values come under pressure from larger supplies.
Lewis Williamson with HTS Commodities shares an update on post-WASDE grain movement, with corn leading export momentum, soybeans steady, and wheat and sorghum continuing to move selectively.

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:

Corn and wheat exports continue to outperform last year, while soybeans show steady but subdued movement compared to 2024.
Tariff relief and new trade agreements may temper food costs by reducing import costs.
Grain farms still have strong balance sheets, but another stretch of low profits will force hard cost cuts, especially on high-rent, highly leveraged operations.
Mold damage is tightening China’s corn supplies, supporting higher prices and creating potential demand for alternative feed grains in early 2026.
The new rule removes prevented-plant buy-up coverage, prompting strong objections from farm groups concerned about added risk exposure.
Tight Credit, Strong Yields Define Early December Agriculture
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.