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.

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