Ethanol Production Surges to Record as Demand Improves

Record ethanol production and improving blending demand continue to support corn usage despite rising short-term inventories.

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 NEWS) — U.S. ethanol production surged to a record high in early January, signaling strong operational momentum even as fuel demand and inventories remain seasonally mixed. According to Energy Information Administration data analyzed by the Renewable Fuels Association, ethanol output jumped 8.9 percent for the week ending January 9, climbing to 1.20 million barrels per day — the highest weekly level on record.

Production ran 9.2 percent above the same week last year and nearly 14 percent above the three-year average, reflecting aggressive run rates across much of the industry. The four-week average production rate also moved higher, reaching an annualized pace of 17.32 billion gallons, reinforcing the strength of near-term supply.

Ethanol stocks increased 3.5 percent to 24.5 million barrels, though inventories remain slightly below both year-ago levels and the three-year average. Stock builds occurred in most regions, with the Midwest the only area where inventories declined, suggesting continued strong blending or shipment activity in the core production region.

Demand indicators improved modestly. Gasoline supplied rose 1.6 percent week over week, while refiner and blender ethanol inputs rebounded more than 9 percent and exceeded both last year and the three-year average. Exports also strengthened, climbing to an estimated 119,000 barrels per day, with no ethanol imports reported for more than a year.

Farm-Level Takeaway: Record ethanol production and improving blending demand continue to support corn usage despite rising short-term inventories.
Tony St. James, RFD NEWS Markets Specialist
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Overall, the report suggests a shift toward more comfortable supply levels, with demand emerging as a key factor to watch in the months ahead.
Lower shipping costs favor corn, while soybeans face pressure.

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.

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