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
Related Stories
RealAg Radio host Shaun Haney explains how geopolitical developments in the Middle East can create energy-driven pressures that impact the supply chain and reshape demand for certain ag products.
Jake Charleston of Specialty Risk Insurance offers his perspective on current cattle market conditions and shares advice for producers seeking to stay protected in an uncertain market.
India trade tensions may affect the U.S. export outlook.
USDA’s March WASDE report leaves U.S. corn, soybean and wheat ending stocks unchanged while adjusting global production estimates for South America.

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:

While agriculture doesn’t predict every recession, the sector’s long history of turning down before the broader economy
The ACRE Act modestly reduces farmland borrowing costs now, with more savings possible once federal guidance clarifies which loans qualify.
ARC-CO delivers the bulk of 2024 support, offering key margin relief as producers manage tight operating conditions.
Higher menu prices and tax-free tips are reshaping restaurant economics, sharply lifting server take-home pay even as diners face higher out-the-door costs.
USDA’s steady yields and heavy global stocks keep grains range-bound unless demand firms or South American weather becomes a real threat.
As economic pressures continue to squeeze agriculture, ag lenders are signaling a more cautious outlook for farm profitability heading into next year, particularly among grain producers facing lower commodity prices and higher operating costs.
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.