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
Mike Knotts with the Tennessee Electric Cooperative Association joined us with the latest on storm impacts, power restoration, and safety considerations following the ice storm.
Meat stocks rose seasonally but remain below last year overall, while tighter butter inventories could support dairy prices, and belly stocks warrant close watch for pork markets.
Year-round E15 remains on the table, but procedural caution and competing regional interests pushed action into a slower, negotiated path.
A mid-January winter storm delivered snow, ice, and extreme cold to a broad swath of the U.S., disrupting transportation, stressing livestock systems, and adding cost and complexity to winter farm operations as producers look toward spring.
Heavier weights and strong late-year slaughter supported December production, but lower annual totals highlight ongoing supply tightness heading into 2026.
Strong production and rising stocks may pressure ethanol margins unless demand or exports continue to improve.

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:

Policies aimed at ground beef prices may primarily reshape dairy incentives rather than deliver lasting consumer savings.
More flexible export financing could strengthen demand in emerging markets and support higher U.S. agricultural exports.
Incremental trade clarity with India could support select U.S. ag exports, but major gains hinge on future market-access talks.
The phone call injected optimism into the soybean market, but actual Chinese buying and its timing will ultimately determine the extent of U.S. agricultural export benefits.
Regulatory uncertainty could slow the growth of fiber and grain hemp unless implementation is delayed.
As cattle markets show renewed strength, producers gathering at CattleCon are focused on protecting operations, managing risk, and positioning for opportunity in the year ahead.
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.