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
China may no longer serve as a consistent anchor market for U.S. cotton exports. Lewis Williamson of HTS Commodities joined us to discuss the factors influencing planting decisions, river conditions, and what producers are considering as they finalize acreage plans for the season.
March 03, 2026 07:00 AM
·
Falling commodity prices and rising costs continue to squeeze farm margins. Kip Jacobs with The Mosaic Company addresses fertilizer market pressures, nutrient use efficiency, and strategies growers can consider to protect their fertilizer investment this season.
March 03, 2026 05:00 AM
·
Weather Swings Shape Early Season Farm Conditions Nationwide
March 02, 2026 02:54 PM
·
Kurt Kovarik of Clean Fuels Alliance America joined us to break down the latest developments in the Renewable Fuel Standard rulemaking process and what it could mean for agriculture, energy markets, and rural economies.
March 02, 2026 02:25 PM
·
Dry conditions may tighten hay supplies before summer growth. John Mays of Central Life Sciences joined us to discuss the risks of extended grain storage, how quality can be affected over time, and what growers can do to protect their grain while waiting for market opportunities.
March 02, 2026 02:21 PM
·
Crop value concentration keeps farm income tied closely to commodity price cycles.
March 02, 2026 01:23 PM
·
