US Ethanol Blend Rate Hits Record High Driven by E15 and E85 Growth
The US ethanol blend rate has hit a record high, marking another positive demand signal for corn producers. According to federal energy data cited by the Renewable Fuels Association, the 12-month average ethanol blend rate reached 10.58%, with an average ethanol content exceeding 11% for a second consecutive month in June.
The increased use of E15 and E85 is allowing ethanol consumption to rise beyond the traditional E10 blend wall. This development is significant because incremental increases in ethanol blending can translate into substantial additional corn demand without requiring an increase in total US gasoline consumption.
California's movement toward broader E15 availability could provide another major demand opportunity, further boosting ethanol production and corn prices.