US Ethanol Blend Rate Hits Record High at 10.58%

The ethanol blend rate in the US has hit a record high, according to federal energy data. The Renewable Fuels Association reported that the 12-month average ethanol blend rate reached 10.58% in June, exceeding the previous record. This growth is primarily driven by increased use of E15 and E85 blends.

The higher blend rates have led to improved blending economics for ethanol producers, as they can now trade at a wholesale discount of $1 per gallon or more compared to gasoline blendstock. The association also noted that Renewable Fuel Standard credits provide additional value.

For corn producers, the increased demand is beneficial, as it translates into higher ethanol production without requiring higher overall gasoline consumption. The introduction of E15 in California could further boost demand and create opportunities for sorghum growers.