Ethanol Production Hits Record As Demand Strengthens

Record ethanol production, coupled with stronger demand, supports corn use despite tighter margins elsewhere.

Farmland producing ethanol for the oil and gas industry. Railroad tankers cars lined up near a ethanol plant at sunset_Photo by photogrfx via AdobeStock_496174713.png

Photo by photogrfx via Adobe Stock

NASHVILLE, Tenn. (RFD-TV) — U.S. ethanol production surged to a new record as stronger fuel demand and exports tightened inventories, offering supportive signals for corn demand. According to the Renewable Fuels Association, output for the week ending December 12 rose 2.4 percent to 1.13 million barrels per day, the highest level ever recorded.

Production ran 2.5 percent above the same week last year and nearly 6 percent above the three-year average. The four-week average also climbed, pushing the annualized production pace to about 17.2 billion gallons. At the same time, ethanol stocks declined modestly to 22.4 million barrels, falling below both year-ago levels and the three-year average, with inventories thinning in most regions.

Fuel demand showed notable improvement. Gasoline supplied to the market jumped more than 7 percent to a 15-week high, while refiner and blender ethanol use rose to a seven-week high. Export demand strengthened sharply, with weekly shipments climbing more than 50 percent to the strongest level since August.

Farm-Level Takeaway: Record ethanol production, coupled with stronger demand, supports corn use despite tighter margins elsewhere.
Tony St. James, RFD-TV Markets Specialist
Related Stories
Allowing year-round sales of E15 nationally could deliver billions in economic gains, according to a new study from the Renewable Fuels Association and National Corn Growers Association.
Farmers await concrete trade commitments from China. Until then, export prospects for soybeans, corn, and sorghum remain uncertain against strong South American competition.
Year-round sales of E-15 are another major topic on Capitol Hill, which, according to Rep. Adrian Smith (R-NE), is one issue up for debate this session with significant bipartisan support.
Harvested acres are estimated at 90.0 million, making this year’s corn crop one of the largest since the 1930s.
U.S. producers are holding off on equipment investments amid financial pressure, market uncertainty, a rising demand for diesel, and growing desperation for trade wins.
With new renewable volume obligations announced this year, the Iowa Soybean Association says they’ll be vital to a farmer’s bottom line.
The September WASDE report comes out on Friday at Noon ET. As always, we’ll bring you those numbers right here on Market Day Report along with our expert
Pressure to lower gas prices across the Golden State could be the saving grace of this year’s corn harvest. California may soon be the final U.S. state to approve E-15 sales.

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:

Cattle groups say additional imports would offer little relief for consumers but could erode rancher confidence as the industry begins to rebuild herds.
Harvest Pace, Logistics, and Input Costs Drive Fall Decisions
With China halting U.S. soybean purchases and talks tied to broader strategic issues, growers face renewed export uncertainty.
Talks highlight the widening role of agriculture in U.S.–India trade policy, though neither side appears ready for major concessions before tariff issues and oil imports are resolved.
Southern farms are deepening online engagement for cost savings and market access, while higher-cost precision technologies face renewed scrutiny amid tight budgets.
Global trade teams and summit discussions highlight expanding opportunities for U.S. corn and ethanol exports as nations explore renewable fuel options and reduced-carbon energy pathways.