US Ethanol Blend Rate Hits Record High Amid Favorable Market Conditions

The U.S. ethanol blend rate reached an all-time high of 11.29% in May, driven by expensive petroleum and favorable blending economics.

Renewable Fuels Association Chief Economist Scott Richman noted that the 12-month average also set a record at 10.57%, indicating sustained demand for ethanol.

Ethanol traded nearly $1.50 per gallon below gasoline blendstock during May, making it an attractive option for refiners and blenders.

The increased blend rate has significant implications for corn demand, with annual consumption potentially exceeding 15.4 billion gallons if gasoline demand matches 2025 levels.