US Ethanol Production Hits Record High as Demand Improves

U.S. ethanol production surged to a record level in early January, signaling strong operational momentum across the industry despite seasonally mixed fuel demand and inventory trends. According to data from the Energy Information Administration (EIA) analyzed by the Renewable Fuels Association (RFA), ethanol output for the week ended January 9 jumped 8.9% to 1.20 million barrels per day, the highest weekly level ever recorded.

Production ran 9.2% above the same week last year and nearly 14% higher than the three-year average, reflecting aggressive run rates at ethanol plants nationwide. The four-week average production rate also increased, reaching an annualized pace of 17.32 billion gallons, underscoring the strength of near-term supply.

Ethanol stocks rose by 3.5% week over week to 24.5 million barrels. However, inventories remain slightly below both year-ago levels and the three-year average. Stock builds were reported in most regions, while the Midwest saw a decline, suggesting continued strong blending activity or outbound shipments from the core production area.

Demand indicators showed modest improvement. Gasoline supplied increased by 1.6% from the previous week, while ethanol inputs by refiners and blenders rebounded by more than 9%, exceeding both last year’s level and the three-year average. Ethanol exports also strengthened, rising to an estimated 119,000 barrels per day, while no ethanol imports have been recorded for more than a year.

For the farm sector, the data are broadly supportive. Record ethanol production combined with improving blending demand continues to underpin corn usage, even as short-term inventories rise, helping to stabilize demand for the crop in the U.S. market.

Tags: corn, USA, ethanol