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
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.
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.
The government shutdown has touched nearly every sector of the ag industry since it began, and now impacts are spilling over into dairy.
Talks highlight the widening role of agriculture in U.S.–India trade policy, though neither side appears ready for major concessions before tariff issues and oil imports are resolved.
Global trade teams and summit discussions highlight expanding opportunities for U.S. corn and ethanol exports as nations explore renewable fuel options and reduced-carbon energy pathways.
Slightly higher output amid softer gasoline pull points to steady corn grind — watch regional stocks and export pace for basis clues.

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:

ARC-CO delivers the bulk of 2024 support, offering key margin relief as producers manage tight operating conditions.
Higher menu prices and tax-free tips are reshaping restaurant economics, sharply lifting server take-home pay even as diners face higher out-the-door costs.
USDA’s steady yields and heavy global stocks keep grains range-bound unless demand firms or South American weather becomes a real threat.
As economic pressures continue to squeeze agriculture, ag lenders are signaling a more cautious outlook for farm profitability heading into next year, particularly among grain producers facing lower commodity prices and higher operating costs.
China’s cost advantage with Brazilian soybeans and vague public messaging leave U.S. export prospects uncertain heading into winter.
Expanded aerial capacity strengthens the U.S.–Mexico buffer against screwworm, providing cattle producers with stronger protection heading into winter and reducing risk to herds along the southern tier.
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.