Gasoline Demand Supports Ethanol Blending Despite Production Decline

Higher domestic ethanol blending supports corn demand even as weekly production and export volumes decline.

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) — Stronger gasoline demand lifted ethanol blending to a 52-week high even as ethanol production eased during the week ending May 22. Renewable Fuels Association analysis of Energy Information Administration data shows refiner and blender ethanol inputs rose 2.2 percent to 937,000 barrels per day.

Ethanol production declined by 2 percent to 1.09 million barrels per day, equivalent to 45.74 million gallons per day. Output remained 3.1 percent above last year and 4.1 percent above the five-year average.

The four-week production average increased to an annualized 16.52 billion gallons. Based on a standard 2.8-gallon-per-bushel conversion, that rate represents demand for nearly 5.9 billion bushels of corn annually.

Gasoline supplied to the market climbed 5.6 percent to a 48-week high. Ethanol stocks rose slightly to 25 million barrels, running 11.1 percent above the five-year average.

Exports dropped 31.5 percent to 4.3 million gallons daily, shifting attention toward domestic blending demand as the stronger near-term market signal.

Farm-Level Takeaway: Higher domestic ethanol blending supports corn demand even as weekly production and export volumes decline.
Tony St. James, RFD News Markets Specialist
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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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