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
Wheat Harvest Expands As Drought Still Pressures Pastures
University of Illinois’ Dr. Matthew Wheeler discusses developing insulin-producing dairy cows and the potential of livestock biotechnology to address future healthcare challenges.
OOIDA’s Lewie Pugh discusses a new bipartisan surface transportation bill, industry efforts to address regulatory concerns, investments in truck parking and freight infrastructure, and the outlook for transportation policy.
Corn ethanol demand and stronger oilseed processing continue supporting domestic markets for crop producers.

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:

Seasonal beef production gains may moderate retail price pressure, while tight cattle supplies continue supporting producer values.
Higher rail fuel surcharges could add cost pressure even as wheat production falls and grain movement remains active.
New Fed surveys show farmland values remain historically high, though some Upper Midwest markets are beginning to soften.
Brazil Potash CEO Matt Simpson discusses global fertilizer security, the importance of domestic production, and Brazil’s push toward fertilizer independence, which could impact market competitiveness.
The DOJ is conducting a criminal antitrust investigation into major beef processors, following years of concern over market concentration.
Commercial performance will determine whether the specialty sorghum market can expand across poultry-producing regions.
Agriculture Shows
Join markets specialist Scott Shellady, better known as the Cow Guy, as he covers the market-close, breaking down headlines that drive the commodities and equities markets with commentary from respected industry heavyweights.
Tara Beaver Coronado (formerly known as Beaver Vineyards) is a farmer in Northern California. She raises grain crops with her dad. Tara planted her very first vineyard in 2018. Her channel is centered around her daily life on the farm, as well as promoting the diversity and scale of California agriculture.
A few years ago, the Stoney Ridge Farmer moved from a 1/3-acre lot in the city to a 150-acre farm nestled in the foothills of the Blue Ridge Mountains of North Carolina.
Cole Sonne is a fourth-generation farmer living in Southeastern South Dakota. His family farm raises Black Angus bulls and grows alfalfa, grass, hay, corn, and soybeans. Cole says, “I make these videos for your entertainment (and for my own, as well)!”