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
Hemp growth is driven by floral demand, with mixed returns elsewhere.
Tight supply and logistics issues may raise input costs.
Export funding aims to strengthen global demand for U.S. commodities.
Dairy markets are improving, but large supplies still cap the upside.

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:

Stronger fuel demand supports corn usage despite a steady production pace.
Fertilizer still consumes an unusually large share of crop value.
Pollination costs remain volatile, raising planning risk for specialty crop producers.
The USDA Agricultural Outlook Forum highlights modest price support from tighter supplies across cotton, grains, dairy, livestock, and sugar into 2026.
Farm Bureau Economist Faith Parum discusses the latest Farm Bill proposal and the path ahead for Congress and U.S. agriculture.
President Donald Trump signed an executive order this week to accelerate domestic production of phosphorus and glyphosate, signaling that farm input availability is now treated as a national security risk.
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.