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
Considering raising your own replacements instead of buying bred heifers? Three key factors to consider before investing capital.
October 08, 2025 03:03 PM
·
Jed Bower, the incoming president of the National Corn Growers Association, joined us for his sector’s perspective on the ongoing government shutdown.
October 08, 2025 11:41 AM
·
Treasury Secretary Scott Bessent last week said an announcement would be made on Tuesday. However, that self-imposed deadline has now passed.
October 08, 2025 11:19 AM
·
George Baird, with the American Society of Farm Managers and Rural Appraisers (ASFMRA), joins us with updates on how this year’s rice harvest is shaping up.
October 07, 2025 03:12 PM
·
Expect firm demand for dependable HRS and SW, steady movement in HRW, more sorting on SRW, and selective bids on durum until full milling results are released.
October 07, 2025 03:02 PM
·
Market analyst Kevin Huddleston said news of trade deals could rebound cotton prices in late fall, and producers need to be ready to strike deals.
October 07, 2025 02:05 PM
·
