NASHVILLE, Tenn. (RFD NEWS) — U.S. ethanol markets softened in mid-January as production declined and inventories climbed, signaling weaker near-term demand even as output remained historically strong. New data show pressure building on margins as gasoline consumption slowed sharply.
Ethanol production fell 6.4 percent to 1.12 million barrels per day for the week ending January 16. Despite the weekly drop, output was still 1.8 percent higher than a year ago and nearly 15 percent above the three-year average. The four-week average production rate edged higher to an annualized 17.42 billion gallons, underscoring continued run strength.
Inventories increased 5.2 percent to 25.7 million barrels, the highest level in 40 weeks. Stocks built across most regions and now sit slightly above the three-year average, adding to near-term supply pressure.
Demand signals weakened. Gasoline supplied fell 5.7 percent to a three-year low, pulling implied ethanol demand lower even as refiner and blender ethanol use rose modestly. Exports provided a bright spot, surging more than 80 percent week over week.
Farm-Level Takeaway: Strong production and rising stocks may pressure ethanol margins unless demand or exports continue to improve.
Tony St. James, RFD NEWS Markets Specialist
John Mays with Central Life Sciences joins us to discuss the importance of pest management ahead of wheat storage and how protecting grain quality can support stronger marketing opportunities.
April 29, 2026 03:18 PM
·
University of Arkansas researchers are working to help farmers reduce grain waste and get more value out of their crops.
April 29, 2026 03:03 PM
·
According to a tweet from Rep. Anna Paulina Luna, the full House vote on the Farm Bill will be held until lawmakers return from recess.
April 29, 2026 02:50 PM
·
Louisiana soybean farmers are moving quickly to get this year’s crop planted during a key window for yield potential.
April 29, 2026 02:08 PM
·
The House is moving forward with debate on the Farm Bill after a lengthy session in the House Rules Committee cleared the legislation for floor consideration.
April 29, 2026 11:28 AM
·
Data center growth can bring opportunities, but competition for land, water, and power will matter more in rural areas.
April 29, 2026 10:00 AM
·
