The U.S. ethanol blend rate has reached a record level, providing another positive demand signal for corn producers. Federal energy data cited by the Renewable Fuels Association shows the 12-month average ethanol blend rate reaching 10.58%, while average ethanol content exceeded 11% for a second consecutive month in June. Increased E15 and E85 use is allowing ethanol consumption to rise beyond the traditional E10 blend wall. At the same time, ethanol production averaged about 1.11 million barrels per day during the week ended Aug. 28, while inventories declined to roughly 25 million barrels. The development 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.
Welcome
