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
Hurd joined this week’s Champions of Rural America to review the proposed Farm Bill moving through the House and discuss its potential impact on rural communities and farmers across the country.
Big oils-and-fats volumes can support crush demand, but fuel markets can quickly tighten supplies.
Mexican livestock officials are emphasizing surveillance and inspection systems to preserve access to the U.S. cattle export market. Texas’ Bovina Feeders explains the rising stakes as the border stays closed.
Nutrition policy shifts may influence retail demand across agriculture.

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:

Tight cattle supplies keep prices high for ranchers, but policy shifts, export barriers, and packer losses signal a volatile road ahead for the beef supply chain.
Distillers dried grains (DDG) values follow corn and soybean meal trends, with ethanol grind and feed demand shaping costs into early 2026.
Pork producers should prioritize health and productivity gains, hedge feed and hogs selectively, and watch Brazil’s export pace and China’s sow policy for price signals.
For tight margins, contract grazing leverages existing acres into new income streams and spreads risk. Here are some tips for row crop farmers looking to diversify.
Global nitrogen and phosphate prices remain high despite improved supply fundamentals, with limited Chinese exports and stronger fall applications tightening availability.
Record output, larger stocks, and softer exports point to a well-supplied domestic ethanol market as harvest progresses.
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.