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.
Strong corn exports offer support, while soybeans and wheat remain weighed down by ample global supplies, according to the USDA’s latest WASDE report for February.
February 10, 2026 04:25 PM
·
Higher livestock prices reflect resilient demand, even as disease and herd shifts reshape 2026 supply expectations.
February 10, 2026 04:11 PM
·
Kevin Charleston of Specialty Risk Insurance discusses the importance of grain bin safety and joint efforts with Nationwide to provide farmers and first responders with access to critical, life-saving rescue tubes.
February 10, 2026 03:57 PM
·
Bankruptcy filings reflect prolonged margin pressure, rising debt, and limited financial flexibility across farm country. Bigger operating loans are helping farms manage costs, but they also signal growing reliance on borrowed capital.
February 10, 2026 01:35 PM
·
USDA’s February WASDE report, analysts expect minimal price movement as grain stocks remain steady. Traders weigh renewed Chinese soybean purchases, South American weather, acreage shifts, and upcoming USMCA trade talks.
February 10, 2026 01:11 PM
·
RFD NEWS Correspondent Frank McCaffrey was in Mission, Texas, where state and federal officials addressed growers and producers at a round table event hosted at a citrus grower’s facility. He shows us how welcome news was all around.
February 10, 2026 12:05 PM
·
