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
NPPC President Rob Brenneman says rising fuel and input costs are creating pressure across pork production despite steady trade.
Soybean oil is already feeling the pressure.
USDA Secretary Brooke Rollins visits Arizona cotton producers as rising fuel, fertilizer, and fuel and fertilizer costs continue to pressure farm margins.
ISA says Southeast Asia continues driving demand for soy-based feed products through expanding livestock and seafood industries.

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:

USDA says federal biofuel policy and growing renewable diesel capacity are increasing demand for feedstocks.
USDA says growing soybean output and expanding biofuel demand are helping drive the increase.
Industry leaders say restored access is a major step forward, though exports remain well below previous levels.
Texas A&M economist John Robinson says speculative buying helped push ICE cotton futures sharply higher.
Changes to several Risk Management Agency programs are set to begin with the 2027 crop year.
For farmers, better data may not solve every local rail problem, but it can make service failures easier to document.
Agriculture Shows
RFD Network is always creating new ways for rural America to educate and to be educated. RURAL AMERICA LIVE, the network’s longest-running self-produced program, is certainly no exception.