Ethanol Output Slips as Demand Rebounds Sharply

Strong blending demand continues to support ethanol use even as production and exports fluctuate.

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, Tenn. (RFD NEWS) — U.S. ethanol production eased slightly late last week, but demand indicators strengthened, offering support for corn-based biofuels as winter fuel consumption rebounded. New EIA data analyzed by the Renewable Fuels Association show ethanol markets entering late January with mixed supply signals but improving usage.

Ethanol production for the week ending January 23 declined 0.4 percent to 1.11 million barrels per day, or roughly 46.8 million gallons per day. Despite the weekly dip, output remained nearly 10 percent higher than the same week last year and more than 10 percent above the three-year average. The four-week average production rate edged marginally lower to an annualized pace of 17.40 billion gallons, signaling plants continue to run well above historical norms.

Ethanol inventories tightened modestly. Stocks fell 1.3 percent to 25.4 million barrels, slightly below year-ago levels but still above the three-year average. Inventory builds in the Midwest were offset by draws in other regions.

Demand showed notable improvement. Gasoline supplied rebounded nearly 12 percent ahead of a winter storm, while ethanol blending increased more than 3 percent. Exports declined sharply week to week but remain historically strong.

Related Stories
USDA released the November WASDE Report on Friday, the first supply-and-demand estimate to drop since September, just before the 43-day government shutdown.
AFBF economist Faith Parum breaks down the potential impact of the proposed policy change to allow year-round sales of E15 biofuel.
With the U.S.–Vietnam agreement nearing signature, U.S. cotton, corn, and soybean exporters could lock in new demand lanes just as global supply shifts.
Winter weather will challenge livestock producers working to rebuild their herds despite harsh conditions.
Enforceable origin labels could create clearer premiums for U.S. cattle and address concerns some producers have had with competition from foreign imported beef.
Friday’s release will be the first WASDE report in about two months, and early estimates indicate a corn surplus is still on the way.
The National Milk Producers Federation (NMPF) says recent wins in markets like Malaysia and Cambodia help farmers focus on production rather than trade barriers.
Export strength is concentrated in corn and wheat, while soybeans and sorghum lag, keeping basis and logistics dynamics highly commodity-specific into late fall.
Ohio AgNet’s Dusty Sonnenberg takes us up in the cab with a popcorn farmer bringing in this year’s haul.

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:

Stronger rail movement and lower fuel prices are easing logistics, even as export pace and river conditions remain uneven.
Small, locally focused wineries are finding resilience through direct sales and regional loyalty rather than scale alone.
Tight feeder supplies and lower placements indicate continued support for the cattle market, with regional impacts heightened in Texas by reduced feeder imports.
Weather-driven transportation disruptions can tighten logistics, affect basis levels, and delay grain movement during winter months.
Lower milk prices may pressure margins, but strong cattle values could soften near-term financial impacts.
Record ethanol production, coupled with stronger demand, supports corn use despite tighter margins elsewhere.
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.