NASHVILLE, Tenn. (RFD NEWS) — U.S. ethanol production slowed in the latest reporting week, while inventories tightened and exports jumped sharply. The new numbers point to a market that is still moving product, but with less production support than earlier in the month.
According to EIA data analyzed by the Renewable Fuels Association, ethanol production for the week ending April 24 fell 3.0 percent to 1.01 million barrels per day. That was the lowest weekly output since January and 3.0 percent below the same week last year.
Stocks also moved lower. Ethanol inventories dropped 4.0 percent to 25.9 million barrels, a seven-week low. Even so, stocks remained 1.9 percent above year-ago levels and 4.6 percent higher than the three-year average for the week.
Demand indicators were steadier. Gasoline supplied, a proxy for implied demand, rose 0.5 percent to 9.10 million barrels per day. Refiner and blender net ethanol inputs slipped 0.4 percent to 917,000 barrels per day.
The strongest move came in trade. Ethanol exports surged 86.8 percent to 170,000 barrels per day, while EIA again reported no ethanol imports.
Meanwhile, biofuel stakeholders continue to praise the updated renewable volume obligations, which totaled more than six billion gallons. Industry leaders say the policy signals room for growth.
“We have the capacity to produce it. We have the feedstocks to produce it. All we’ve ever needed is for the policy side of the world to sync up with what we were able to do, and we finally have that under this most recent RVO,” explains Donnell Reahagen. “So, that came out of this Trump administration, set for 2026 and then for 2027 as well, with a little bit of a bump in 2027. So, we have a prospective volume out there in front of us, which we always want to have a prospective volume, and it’s telling us to grow and to grow fast, and that’s exactly what we wanted to hear.”
Rehagen says the biggest winner in the biofuels industry right now is the soybean farmer, noting that soybean oil is the largest feedstock currently in use.
“The production expansion started years ago. It would be like the soybean crush expansion that happened,” Rehagen explains. “Those are projects that were conceptualized three, four, and five years ago, and they’re just now coming to fruition, right? So, the same would be true for a biodiesel or renewable diesel plant. Those are usually years in the making. So, our expansion was kind of ahead of the curve, if you think about it from the perspective of what the RVOs were set. So, there was some anticipation, I guess I would say, that there would be higher volumes set, because we see the country moving towards cleaner transportation fuels.”
At the same time, energy development is accelerating. A report from the American Clean Power Association shows utility-scale wind, solar, and battery storage capacity topped 50 gigawatts in 2025, with storage installations up more than 40 percent from the previous year.
The U.S. is ramping up its focus on agricultural trade with China, as President Donald Trump prepares for a trip to Beijing in the coming weeks. Officials say the goal is to secure new trade deals that go beyond soybeans, expanding market opportunities for American farmers and ranchers.
While China has long been a top buyer of U.S. soybeans, demand could broaden to include corn, sorghum, and meats. Analysts say any new purchasing commitments could give U.S. producers a competitive edge, while also shifting some demand away from South American suppliers. So far, trade discussions have centered on diversifying exports, with particular attention on pork, dairy, and specialty crops.
Farm groups have historically supported stable trade relationships with China, but caution that past agreements have not always been fulfilled, raising concerns about long-term reliability. With the upcoming visit, industry leaders will be watching closely to see whether new agreements can deliver more consistent demand and stronger export markets for U.S. agriculture.
