Ethanol Prices – Historical Graph
Real-time chart of historical daily ethanol prices. The prices are down in U.S. dollars per GAL.
- The average price in the past 3 days is
- The average price in the past 7 days is
- The average price in the past 30 days is
- The average price in the past 365 days is
Popular questions about ethanol prices:
Ethanol Prices Explained
As you can see ethanol prices are fluctuating. But why is that? And is there a way to predict the price of ethanol?
Why are ethanol prices fluctuating?
Ethanol prices are rising steadily thanks to the Biden administration mandate which advocates more bio-fuel blending into gasoline. However, this is not the only catch as other implied factors are behind this. Here are some:
1. Energy Prices
The rise of ethanol prices relies heavily on crude oil and energy prices.
Ethanol is a substitute source for gasoline. Thus, an increase in fuel prices will prompt people to purchase much lesser bio-fuel which ramp up the ethanol demand and price.
2. Global Warming
Ethanol mainly comes from corn and the recent extreme drought and hurricanes that hammered the Midwest reduced corn production.
The US drought in 2021 reduced 13% of Nebraska’s corn yield which reflected in the entire Midwest corn production. Thus, this drives the ethanol price in the market.
3. US Inflation
The US inflation peaked at 9.1% in June 2022 driving almost all commodities to a sharp market increase including ethanol.
This spike is expected to continue until 2024.
4. Corn Prices
Corn is the main raw material used in ethanol production. Therefore, any corn price movement will highly influence the price of ethanol.
5. Biden’s Administration
The rising fuel prices, increased foreign fuel dependency, and the current Russian-Ukraine war made the Biden administration turn to ethanol as a fuel alternative.
This results in lesser ethanol exports from the largest ethanol-producing country ( the US ) to their counterparts.
Which variables impact the price of ethanol?
- Corn Prices
- Crude Oil Prices
- Government Policies
- Weather Conditions
- Transportation Costs
- Ethanol Production
Where does ethanol come from?
Ethanol mainly comes from plants that have high amounts of sugar, starch, and cellulose. Other sources of ethanol are sugarcane, sugarbeets, barley, and wheat.
In the United States, corn is the most common source of ethanol. The ethanol production process involves converting the starch or sugar from the plant into glucose which is then fermented using yeast.
After distilling to remove the impurities from the mixture of water and ethanol, the final product is clear and pure ethanol which is ready to use as a gasoline substitute.
Today, the US tops the largest ethanol-producing country in the world, followed closely by Brazil, and distantly by China, Argentina, Canada, and Thailand.
When is the ethanol season?
Ethanol production is present all year round in the US, however, certain seasons record its peak production.
Generally, the corn harvest in the US runs from late summer to fall. During this time ethanol production is plenty and prices are low as there is ample supply yet the summer driving season from Memorial Day to Labor Day causes a short spike in price.
Furthermore, the Clean Air Act in the US requires much tighter regulation to lessen smog and other air pollutants. This law takes effect every June 1st to September 15th.
The state of Minnesota prohibits selling ethanol during the summer months to fully follow the regulation. Regardless of this law, ethanol production, supply, and demand continue across the state.