Ethanol Output Falls As Inventories Continue Building Higher

Ethanol production remains historically strong, but rising inventories and weaker gasoline demand could limit additional growth.

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

WASHINGTON, D.C. (RFD News) — U.S. ethanol production pulled back last week while inventories climbed again, creating a mixed demand signal for corn growers. Energy Information Administration data show output fell about 3% to a five-week low of 1.09 million barrels per day.

Production still remained about 2% above last year and 6% above the five-year average. The four-week average held near 1.11 million barrels per day, equivalent to roughly 17.1 billion gallons annually.

Inventories increased about 1% to 25.1 million barrels, the highest weekly level since early May. Stocks are running roughly 11% above both last year and the five-year average.

Gasoline demand weakened more sharply, falling about 3% to an 11-week low. However, ethanol inputs from refiners and blenders improved by about 1%, while exports increased by roughly 18% to 129,000 barrels per day.

For corn producers, ethanol production remains historically strong, but rising inventories and softer gasoline demand could limit additional demand growth unless exports and domestic blending strengthen.

Farm-Level Takeaway: Strong ethanol output continues supporting corn demand, but rising stocks and weaker gasoline use remain important warning signs.
Tony St. James, RFD News Markets Specialist

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:

Rising government payments are helping offset higher production costs as inflation-adjusted farm income declines.
Nothing changes immediately. This is a supplemental proposal, and EPA will accept comments for 30 days after publication in the Federal Register before developing a final rule.
The Antitrust Division says it sent letters to Kroger, Publix, Walmart, Albertsons, Aldi, Ahold Delhaize, Costco, and Amazon.
Stronger mill use is providing a boost for extra-long-staple cotton demand, though overall volumes remain limited.
Lower beef and pork inventories point to tighter supplies, while growing turkey stocks could add pressure heading into fall.
Record cattle prices are making replacement-heifer decisions more costly as producers consider rebuilding their herds.
Agriculture Shows
Agriculture is the most important industry in the world, and Ag PhD Daily brings you the information you need to best manage your business only on RFD-TV and RFD+
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.