Stronger ethanol production and gasoline demand lead today’s Ag News Update, while drought keeps pressure on hay markets and cattle herd rebuilding. USDA also projects record canola production and a 15-year low in global cotton ending stocks, while Panama Canal operations continue improving.
Listen to today’s Ag News Update:
Ag News Update – Thursday 10/22/2026
U.S. ethanol production rose 2.7% to a five-week high of 1.09 million barrels per day as gasoline demand jumped 6.8%. HayWire Ag says its national hay index reached $170 per ton, up 4.7% from last week, as drought raises winter feed concerns. USDA forecasts record U.S. canola production at 5.4 billion pounds, while biofuel use of canola oil is projected to climb to 5.6 billion pounds. Matt Makins of Makins Weather says persistent drought could continue limiting cattle herd rebuilding, even as El Niño improves moisture prospects across parts of the Plains. USDA projects global cotton ending stocks at a 15-year low of 70.7 million bales as mill use rises. And the Panama Canal has restored last-minute Panamax reservations as improving rainfall and water conditions support more flexible vessel traffic.
Today’s Ag News Highlights
• Ethanol output reached a five-week high as gasoline demand rebounded.
• HayWire’s national hay index climbed to $170 per ton.
• USDA forecasts record U.S. canola production and stronger biofuel demand.
• Drought could continue limiting cattle herd rebuilding across parts of the West and Plains.
• Global cotton ending stocks are projected at a 15-year low.