U.S. ethanol production jumped 2.1 percent higher last week to an average of 1.116 million barrels a day, according to the Energy Information Administration on Wednesday. Output was above all market expectations and about 6 percent higher than the same week last year. Ethanol production should be entering its seasonal maintenance period, which should lead to lower output through the spring.

The estimated corn crushed for ethanol production was about 109.4 million bushels. Cumulative crushings for the marketing year reached approximately 3.112 billion bushels, reaching 55.6 percent of the USDA’s target.

Ethanol inventories rose 3 percent from the previous week to 27.17 million barrels, the highest weekly print since March 2025. Stocks were still just 0.7 percent below the same week last year but well above the five-year average.

Implied gasoline demand rose 2.2 percent from the previous week, and was also 3.3 percent above the same week last year. Consumption has been climbing since January, with few signs of demand destruction. Sharply higher gasoline prices could incentivize more domestic ethanol usage and keep a lid on inventory levels.

Ethanol exports fell sharply last week to an average of 119,000 barrels a day, down from 174,000 barrels the previous week and 164,000 barrels the same week last year.

—

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.