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
Related Stories
Early wheat harvest is moving, but rain, drought stress, and disease pressure will determine yield and quality.
Higher input costs and tighter cash flow are keeping pressure on farm income, credit needs, and capital spending.
Grain movement remains active, but high ocean freight and diesel costs continue to pressure export logistics.
Cattle producers met with lawmakers to discuss the issues continuing to impact ranchers across the country.

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:

Tyson is still reshaping its beef footprint.
Cotton prices improved last week, but drought, storms, and uneven planting are keeping risk elevated.
Federal officials are signaling a more aggressive push on beef packer concentration, but any direct market impact will depend on what the investigation actually finds.
The USDA’s annual report leaves dairy producers with a mixed picture. Output and herd size expanded, but weaker prices kept income from rising with production.
Total cash receipts from marketings of cattle, calves, hogs, and pigs climbed by 18% in 2025 to $165 billion.
March crush data showed stronger soybean and canola processing, but softer animal fat production.
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.