US Ethanol Blend Rate Hits Record High on E15 Expansion

The U.S. ethanol blend rate has hit a record high, providing a boost to corn producers. According to federal energy data cited by the Renewable Fuels Association, the 12-month average ethanol blend rate reached 10.58% in June, exceeding 11% for a second consecutive month.

This increase is largely due to expanded use of E15 and E85, which allows ethanol consumption to rise beyond the traditional E10 blend wall. As a result, ethanol production averaged about 1.11 million barrels per day during the week ended Aug. 28, while inventories declined to roughly 25 million barrels.

This trend is significant because incremental increases in ethanol blending can translate into substantial additional corn demand without requiring an increase in total U.S. gasoline consumption. California's movement toward broader E15 availability could provide another major demand opportunity.