Ethanol Production Climbs As Demand Strengthens, Exports Fall

Strong ethanol output supports corn demand despite export weakness.

Ethanol gasoline fuel nozzle and corn kernels. Biofuel, agriculture and fuel price concept

JJ Gouin - stock.adobe.com

LUBBOCK, TEXAS (RFD NEWS) — Ethanol production increased last week, providing support to corn demand even as export activity dropped sharply, according to EIA data analyzed by the Renewable Fuels Association.

Production rose 0.4 percent to 1.12 million barrels per day, a five-week high and more than 10 percent above year-ago levels. The four-week average also climbed, putting output on pace for more than 17 billion gallons annually. Strong production levels continue to reinforce domestic corn usage tied to ethanol demand.

Gasoline demand — a key driver for ethanol blending — jumped 6.1 percent to a five-week high, running well above both last year and the three-year average. That strength is helping support the ethanol market despite mixed signals elsewhere.

However, ethanol exports fell sharply, dropping more than 60 percent on the week. At the same time, refiner and blender inputs declined to a six-week low, suggesting some near-term softness in blending activity.

Ethanol stocks increased 2.5 percent, with builds concentrated along the East and Gulf Coasts, adding to available supply.

Farm-Level Takeaway: Strong ethanol output supports corn demand despite export weakness.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
The temporary closures come as grain traffic on the Arkansas River continues running ahead of recent years.
Shrinking Select beef supplies are continuing to reshape cattle pricing and beef demand trends.
RealAg Radio host Shaun Haney says producers should continue to watch tariff negotiations, market access, and the possibility of a more transactional trade relationship with China.
Lewis Williamson with HTS Commodities joined us to discuss spring planting progress and the outlook for trade and demand as the season continues.

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:

The work could apply to ready-to-eat meals and delicate foods such as freeze-dried berries.
Corn exports remained active the week of May 7, but weak soybean, cotton, and sorghum sales kept attention on China and late-year demand.
Conservation programs may work better when they recognize yield risk and cash-flow pressure during adoption.
Cotton growers can use the survey to compare nutrient, herbicide, and pest-management practices against national production benchmarks.
Higher food costs are showing up beyond the grocery aisle, with some major restaurant chains shrinking their U.S. footprint.
Drought and Planting Shape Weekly State Agriculture Recap
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.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.