LUBBOCK, Texas (RFD NEWS) — Ethanol production pulled back in mid-March, signaling softer near-term demand while rising inventories add pressure on margins and corn use expectations.
According to EIA data analyzed by the Renewable Fuels Association, production dropped 2.9 percent to 1.09 million barrels per day — about 45.9 million gallons daily — a six-week low. The four-week average eased to 17.02 billion gallons annually. At the same time, ethanol stocks rose 3.2 percent to 26.4 million barrels, the highest since April 2025, while gasoline demand declined 5.6 percent, weighing on blending needs.
Operationally, weaker refiner inputs and a 7.4 percent drop in exports point to softer movement across domestic and global markets.
In the longer term, Texas A&M AgriLife economist Dr. Mark Welch notes that ethanol demand remains tied to policy and fuel trends. Corn used for fuel has grown to about 5.6 billion bushels — roughly one-third of total production — but declining gasoline use could put pressure on demand. Expanded year-round E15 could offset that, potentially adding up to 2 billion bushels of corn demand by 2030 if adoption accelerates.
Looking ahead, ethanol markets hinge on demand recovery and policy clarity around E15.
Weather Swings Shape Early Season Farm Conditions Nationwide
March 02, 2026 02:54 PM
·
Kurt Kovarik of Clean Fuels Alliance America joined us to break down the latest developments in the Renewable Fuel Standard rulemaking process and what it could mean for agriculture, energy markets, and rural economies.
March 02, 2026 02:25 PM
·
Jennifer Tirey of the Illinois Pork Producers Association joined us to discuss efforts to bring pork back into Chicago Public Schools, the nutritional benefits for students, and what the decision could mean for pork producers across the state.
March 02, 2026 02:23 PM
·
Farmer and retired colonial Joe Ricker joined us to highlight Ag Safety Awareness Program Week, share his work supporting veterans and farmers, and offer guidance on making safety a year-round priority on the farm.
March 02, 2026 02:22 PM
·
Dry conditions may tighten hay supplies before summer growth. John Mays of Central Life Sciences joined us to discuss the risks of extended grain storage, how quality can be affected over time, and what growers can do to protect their grain while waiting for market opportunities.
March 02, 2026 02:21 PM
·
Crop value concentration keeps farm income tied closely to commodity price cycles.
March 02, 2026 01:23 PM
·
