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
High prices alone may not drive herd expansion.
Trust with lenders strengthens farm financial decision-making.
ASFMRA’s Dennis Reyman joined us to discuss planting progress, crop trends, grain movement, and farmland market activity in Iowa.
Partnership helps power homes while supporting a fifth-generation farm
Processing slowdowns and invasive species add pressure during peak harvest
U.S. pork production is rising slightly, driven by steady domestic demand, prices, and expanding global meat export markets beyond China.

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:

A prolonged Iran ceasefire offers limited relief as fertilizer concerns persist, prompting U.S. policy shifts and driving farmers to reconsider crop acreage.
California rewards low-carbon ethanol, not higher blending volumes.
Strong corn exports support demand while soybeans lag.
Strong exports and prices are helping offset rising milk supplies.
RealAg Radio’s Shaun Haney discusses the DOJ investigation into U.S. beef packers, concerns about cattle pricing, and ongoing trade and animal health issues affecting producers.
Rep. Dusty Johnson of South Dakota joined us to discuss rising input costs, proposed fertilizer legislation, and potential support for farmers navigating tight margins.
Agriculture Shows
RFD-TV has partnered with a handful of agricultural social media influencers whom we have dubbed The New Crop. These folks have taken to the internet to tell their stories and to raise awareness of where our food comes from and all that goes into feeding the world population.
The goal of “Where the Food Comes From” is as simple as its name implies — host Chip Carter takes you along on the journey of where our food comes from — and we don’t just mean to the supermarket (though that’s part of the big picture!). But beyond where it comes from, how it gets there, and all the links in the chain that make that happen.
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.