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
Better yield measurement means fairer grids, more precise breeding targets, and more dollars for truly efficient cattle.
Escalating U.S.–China tensions threaten soybean demand as farm finances are stretched further.
Rex Gray, Corn Product Manager for Golden Harvest, discusses how the company works side-by-side with farmers to develop strong-performing hybrids built to fit their acres.
Expect a steady corn grind and selective basis strength where exports and local blending stay active.
CoBank Lead Grains Economist Tanner Ehmke joins us to share insight and concerns over current grain storage capacity as export demand lags.
Farm CPA Paul Neiffer shares his perspective on the uncertain outlook of federal farm relief and the Farm Bill, which may not materialize until the government shutdown ends.

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:

Strong U.S. yields and steady demand leave most major crops well supplied, keeping price pressure in place unless usage strengthens or weather shifts outlooks.
Retail competition and improved supplies are helping offset food inflation, pushing Thanksgiving meal costs modestly lower despite higher prices for beef, eggs, and dairy.
While agriculture doesn’t predict every recession, the sector’s long history of turning down before the broader economy
The ACRE Act modestly reduces farmland borrowing costs now, with more savings possible once federal guidance clarifies which loans qualify.
ARC-CO delivers the bulk of 2024 support, offering key margin relief as producers manage tight operating conditions.
Higher menu prices and tax-free tips are reshaping restaurant economics, sharply lifting server take-home pay even as diners face higher out-the-door costs.
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.