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
Reduced slaughter numbers and stronger export demand are helping push livestock by-product values higher.
LSU economist Dr. Michael Deliberto says fewer planted acres could tighten supplies and support prices for producers.
Dr. Derrell Peel says the longer the border remains closed to Mexican cattle imports, the more likely some industry changes could become permanent.
Producers say limited moisture is creating major challenges for crops and irrigation heading into summer.

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:

Drought remains a major risk, with the ERS reporting that 98 percent of the U.S. cotton production area was affected by drought in early May.
Higher placements lifted feedlot inventories, but slower marketings point to continued tightness in finished cattle movement.
China remains critical to U.S. farm exports, but Brazil’s growing market share keeps pressure on U.S. soybean demand.
Tight cattle supplies should keep beef prices supported, while dairy, pork, and poultry are poised for greater production growth.
Early wheat harvest is moving, but rain, drought stress, and disease pressure will determine yield and quality.
China’s pledge is supportive, but producers need confirmed sales and shipments before counting it as stronger export demand.
Agriculture Shows
Check out FFA Today, a fun and fast-paced show featuring fascinating stories about amazing kids and unique agriculture industries.
Farmweek is broadcast from Mississippi, one of the South’s most geographically diverse states. The Magnolia State’s most important resource is its people—and about a fourth of the state’s population hold jobs tied to agriculture.
“DocTalk” with host Dr. Dan Thomson will be teaming up with practitioners around the country to tackle issues with your livestock.
This high-yield corn contest showcases real-life Corn Warriors dealing with elements that every farmer knows well. Get an authentic look at what it takes to compete in a high-yield corn contest, and see who will take the title of Corn King.