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
The aggressive disease can lead to significant yield losses without timely treatment.
Agriculture Secretary Brooke Rollins says USDA has been preparing for a New World screwworm outbreak for more than a year as officials expand sterile fly production and containment efforts in Texas.
Data centers will continue expanding, but local decisions will determine whether that growth protects agricultural water access or adds stress to already vulnerable production regions.
Ethanol, sorghum, dairy, and cotton provide additional export support as major commodity trade markets remain uneven.

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:

Higher domestic ethanol blending supports corn demand even as weekly production and export volumes decline.
Specialty crop growers should confirm eligible acreage and application access early to avoid missing available assistance.
China’s expanding farm assistance in Cuba bears watching as food trade becomes part of regional influence.
Wheat Harvest Begins As Drought Challenges Livestock Regions
Unlike facilities focused on merchant ammonia, Meadowlark would convert its on-site ammonia into UAN and sulfur-containing ATS fertilizers used by regional crop producers.
For producers, the issue is diesel, freight, irrigation fuel, and input delivery.
Agriculture Shows
As the trusted voice of the U.S. cattle and beef industry, the National Cattlemen Beef Association strives to share timely, relevant news. NCBA’s “Cattlemen to Cattlemen” is the leading TV show for beef producers to receive cattle industry news, education, and information.
America’s Heartland brings positive, heartfelt stories about American agriculture to viewers in both urban and rural areas.
Hosted by Pam Minick, “The American Rancher” focuses on the people and places that make ranching an American lifestyle. This half-hour magazine format series features livestock producers and their ranches, animals, and ranching practices.
For the latest information on how to take your operation from good to great, tune into Ag PhD. The program includes a wide range of agronomic information from how to maximize your fertilizer program & tiling to stopping those yield-robbing insects and crop diseases and more.