Ethanol Output Rises as Corn Demand Signals Strengthen

Corn demand received another boost last week as ethanol production climbed to a five-week high.

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, TN (RFD NEWS) — Ethanol production moved higher again last week, giving corn demand another supportive signal during a volatile input and fuel market.

The U.S. Energy Information Administration (EIA) shows production reached a five-week high of 1.11 million barrels per day.

That equals 46.66 million gallons per day, or an annualized pace of 16.22 billion gallons. Using a rough 2.8 gallons of ethanol per bushel of corn, that pace implies about 5.79 billion bushels of annualized corn use.

Output was 7.2 percent above the same week last year and 9.7 percent above the five-year average. Ethanol stocks held near 24.9 million barrels, slightly below last year but above the five-year average.

Gasoline supplied rose slightly to 8.77 million barrels per day, while blender inputs climbed to 917,000 barrels per day.

Exports slipped 8 percent to 6.3 million gallons per day.

Farm-Level Takeaway: Strong ethanol production supports corn demand, but gasoline use, inventories, and export movement remain important watch points.
Tony St. James, RFD News Markets Specialist
Related Stories
Soy Transportation Coalition’s Mike Steenhoek discusses how rising diesel costs affect grain delivery decisions and how farmers can use their free calculator to compare transportation costs and protect profitability.
Sen. Roger Marshall of Kansas discusses the Harvest Fuel Relief program, producers’ financial pressures, and next steps for farm legislation.
GasBuddy says Chinese production and Russian oil remain key factors for diesel supplies.
Higher heating costs are putting added pressure on household budgets in rural communities.
The planned UAE facility could create a new annual export outlet for American corn growers.
AFBF Deputy Chief Economist Dr. Faith Parum says Title I commodity payment rates are expected in November. Producers should watch for USDA application details and contact local FSA offices.

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:

CoBank says beef-on-dairy is playing a major role in the changing market.
Smith’s chapter is getting a firsthand look at the ag sector through an FFA industry trip.
Jess Peterson says January could bring a strong start if global pressures ease.
The special provision giving producers the higher of ARC or PLC for 2025 will not continue next year.
Higher shipping costs could make U.S. grain less competitive overseas.
Slower exports and stronger foreign competition are weighing on the U.S. pork sector.
The fire burned nearly 160,000 acres as the community rallied to protect homes and ranches.
Both versions would set a minimum for program funds used to buy American commodities.
The proposed deal would combine nearly half of U.S. rail traffic under one railroad.
NCBA says greater efficiency is allowing the industry to produce more beef with fewer cattle.
Pork exports to Mexico have more than doubled during the six years of USMCA.
More soybeans are being processed domestically as renewable fuels drive demand for soybean oil.
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, Commodity Talk on RFD-TV and Rural Radio SiriusXM Channel 143 delivers expert insight into today’s agricultural commodity markets just before the CME opens.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.