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
Agriculture remains a key drag on regional growth amid weak prices and policy uncertainty.
Tight cattle supplies favor poultry and pork while keeping beef margins under pressure.
Mike Spier, president and CEO of U.S. Wheat Associates, discusses the new U.S.-Bangladesh trade agreement and its potential benefits for U.S. wheat growers.
Gretchen Kuck of the National Corn Growers Association joined us to discuss the Ag Coalition for USMCA’s report findings and expectations ahead of the upcoming USMCA review.
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.
Higher livestock prices reflect resilient demand, even as disease and herd shifts reshape 2026 supply expectations.

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:

Fertilizer still consumes an unusually large share of crop value.
Pollination costs remain volatile, raising planning risk for specialty crop producers.
The USDA Agricultural Outlook Forum highlights modest price support from tighter supplies across cotton, grains, dairy, livestock, and sugar into 2026.
Farm Bureau Economist Faith Parum discusses the latest Farm Bill proposal and the path ahead for Congress and U.S. agriculture.
President Donald Trump signed an executive order this week to accelerate domestic production of phosphorus and glyphosate, signaling that farm input availability is now treated as a national security risk.
The global rice surplus outweighs tighter U.S. supplies, pressuring prices.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.