LUBBOCK, TX – Ethanol production increased last week, providing support to corn demand even as export activity dropped sharply, according to EIA data analyzed by the Renewable Fuels Association.
Production rose 0.4% to 1.12 million barrels per day, a five-week high and more than 10% above year-ago levels. The four-week average also climbed, putting output on pace for more than 17 billion gallons annually. Strong production levels continue to reinforce domestic corn usage tied to ethanol demand.
Gasoline demand — a key driver for ethanol blending — jumped 6.1% to a five-week high, running well above both last year and the three-year average. That strength is helping support the ethanol market despite mixed signals elsewhere.
However, ethanol exports fell sharply, dropping more than 60% on the week. At the same time, refiner and blender inputs declined to a six-week low, suggesting some near-term softness in blending activity.
Ethanol stocks increased 2.5%, with builds concentrated along the East and Gulf Coasts, adding to available supply.
Farm-Level Takeaway: Strong ethanol output supports corn demand despite export weakness.