By: Alberto Lancellotti
TESEO.clal.it – Corn used for ethanol production in the U.S.
Ethanol production has been increasing significantly in recent months, with growth rates exceeding 4% between November 2024 and April 2025. This trend reflects the strong long-term growth expectations for the U.S. market, where rising demand for biofuels is expected to drive the expansion of ethanol over the next decade.
This growth has direct implications for the agricultural sector. In the United States, ethanol—a key component of the energy industry—is primarily produced through the fermentation of Corn. The country remains the world’s leading ethanol Producer, supported by a well-established infrastructure and a high availability of corn.
Over the past 20 years, the share of corn allocated to ethanol production has increased from approximately 10% to over 30%, underscoring the growing relevance of this sector.
The Corn used for ethanol production is characterized by a high starch content, which, once fermented, ensures a high Ethanol yield. This specific variety of corn is selected for its efficiency in alcohol conversion, positioning the United States as a highly competitive player in the global biofuels market.
Ethanol also plays a crucial role as a “relief valve” for corn supply, providing a market outlet for crops that may not be suitable for human or animal consumption. In cases of overproduction or crop damage—such as contamination from aflatoxins or issues caused by adverse weather conditions—the ethanol industry enables farmers to redirect corn toward biofuel production. This mechanism helps balance supply and demand, reduce waste, and stabilize the corn market, even in scenarios of surplus production or limited alternative outlets.
Ethanol production is primarily concentrated in the Midwest, particularly in the states of Iowa, Nebraska, and Illinois. Together, these states form the heart of the so-called Corn Belt, which is the core area for corn cultivation.
Check the new page on TESEO
focused on Ethanol >
However, there is also an international dimension at play: the United States exports large volumes of ethanol, especially to Canada and the United Kingdom. This trend has been growing significantly, particularly in the past two years, with double-digit percentage increases. Exports help stabilize the market by absorbing excess production and supporting demand even when domestic consumption slows.
In the context of biofuels, Ethanol is commonly blended with gasoline to reduce pollutant emissions and improve energy efficiency. In the United States, the most widespread blends are E10 (10% ethanol, 90% gasoline) and, to a lesser extent, E85 (85% ethanol, 15% gasoline).
The price trends of Oil and Ethanol are often interrelated: fluctuations in oil prices can have a direct impact on the ethanol market and, consequently, on the Corn market, influencing costs and the economic dynamics of the agricultural sector. In particular, increases in fossil fuel prices tend to drive greater demand for alternative solutions, especially those within the biofuels sector.
Check the new page on TESEO
focused on Ethanol >
TESEO.clal.it – U.S.: comparison between Ethanol, Corn and Oil prices
... share
The CLAL.it team is composed of young people who with the help of Computer Science study the dairy market and develop tools to provide the Operators of the dairy sector with a comprehensive real-time view of the national and international market trends.
