NASHVILLE, TN – The U.S. ethanol blend rate reached a record 11.29 percent in May as expensive petroleum and favorable blending economics increased ethanol use. Renewable Fuels Association Chief Economist Scott Richman says the 12-month average also set a record at 10.57 percent.
Ethanol traded nearly $1.50 per gallon below gasoline blendstock during May. Renewable fuel credits also rose above ethanol prices, effectively making the physical fuel extremely attractive to refiners and blenders.
At the May blend rate, annual ethanol consumption would reach about 15.4 billion gallons if gasoline demand matched 2025 levels. That would exceed last year’s consumption by more than 1 billion gallons and strengthen corn demand.
Ethanol reduced the finished cost of E10 gasoline by about 14 cents per gallon in May. E15 delivered roughly 21 cents in fuel savings, plus additional renewable-fuel credit value.
Summer restrictions still limit E15 availability across much of the country. Permanent year-round authorization could expand ethanol use, support corn grind, ease renewable-fuel credit prices, and provide consumers additional protection from expensive gasoline.
Farm-Level Takeaway: Record blending economics could strengthen ethanol demand and increase corn usage.