Ethanol Prices Steady Despite Rising Corn Feedstock Demand

Production and Feedstock Costs

Ethanol prices have stabilized at $1.60 per gallon as of late December. The primary driver on the cost side is corn, which has recently seen futures rise toward $4.40 per bushel due to increased ethanol production demand. Record-breaking production rates at the end of November have kept the market well-supplied, even as grain costs increase. This balance has prevented the sharp volatility seen in other energy sectors.

Global Mandates and Regional Variations

The ethanol market remains heavily influenced by government mandates for renewable fuels. While North American prices have seen a minor 1.4% dip this month, European rates have climbed by 2.1%. Analysts expect the global market to grow throughout 2026 as more regions adopt higher blending requirements, ensuring a steady off-take for U.S. corn-based ethanol in the international market.