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
Considering raising your own replacements instead of buying bred heifers? Three key factors to consider before investing capital.
Reliable, clearly graded middle meats still anchor demand; programs that deliver consistent eating quality and simple, confidence-building menus capture more repeat visits—and more value—back through the beef chain.
Prepare for tighter cash flow, delayed capital buys, and policy-driven risk management this fall.
Jed Bower, the incoming president of the National Corn Growers Association, joined us for his sector’s perspective on the ongoing government shutdown.
Treasury Secretary Scott Bessent last week said an announcement would be made on Tuesday. However, that self-imposed deadline has now passed.

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:

Congress has just over a month of working days left for the year. Plan for uneven USDA service until funding is restored, and closely monitor Farm Bill talks, as avoiding Permanent Law before January 1 is the single biggest risk to markets and milk prices.
Mexico’s tougher, two-step treatment and added checkpoints are catching cases before they can spread—good news for producers near the border.
Harvest Builds As Logistics And Input Costs Shape Fall Decisions
Focus on home radon testing—not changing your diet—because background sources vastly outweigh any exposure from naturally radioactive foods.
Prepare for acute UAN risk and a brief urea shock; maintain steady ammonia and phosphate plans, and monitor potash basis on the coasts.
Agricultural exports continue to be a key contributor to rural employment. However, rural businesses still struggle to fill numerous job openings.