US Ethanol Production Booms on Strong Demand and Global Fuel Shifts

Ethanol production in the US continues to run high, with industry insiders attributing this trend to robust demand and shifting global fuel supplies. According to Scott Richman, chief economist at the Renewable Fuels Association, 'We've got very solid ethanol demand, and also what's going on with U.S. and global fuel supplies.'

The industry is eager for legislation that would make E15 availability a year-round standard, eliminating the uncertainty that comes with EPA waivers around summer driving season. Richman notes that this legislative push is crucial for retailers who want to avoid last-minute decisions about whether or not to sell ethanol-blended gasoline.

Corn usage for ethanol production is also expected to remain high, with the USDA estimating 5.55 billion bushels and 5.6 billion bushels of corn will be used in this marketing year and next year's respective. Ethanol exports have been a significant factor as well, with 2026 on pace to top last year's record.

The U.S. Energy Information Administration reports that ethanol production averaged 1.133 million barrels per day during the week of July 24th, making it the second-highest weekly average ever recorded.