By Luiz Carlos Salomão
US ethanol plants slowed their use of corn in September, according to the US Department of Agriculture (USDA). The plants used 438.42 million bushels of corn to make fuel ethanol during the month, a drop of about 9% from August. The figure is still higher than a year earlier: in September 2025, the plants used 435.60 million bushels, so the September 2026 volume is about 1% above that level.
Calendar effect and daily pace
August had 31 days and September had 30. When the USDA adjusts consumption for the calendar, the average daily pace falls by about 5.49%. In other words, the decline is real and cannot be explained only by one fewer day in the month.
Total corn processing and by-products
Adding up all industrial uses in the survey, corn consumption reached 485 million bushels in September. That was down 8% from August and up 1% from September 2025. Of this total, 92.7% went to alcohol production, including fuel and other uses, and 7.3% to other industrial uses.
By-products moved in opposite directions. Production of distillers dried grains with solubles (DDGS), dry distillery grains used mainly as animal feed, totaled about 1.70 million short tons. That was down 8% from August and slightly below September 2025. Distillers wet grains (DWG), which have a moisture content of 65% or more, reached 1.30 million short tons. They rose 1% from August and 7% from a year earlier.
Background: why ethanol demand matters
Ethanol plants are a major part of domestic corn consumption in the United States, so any change in their demand affects the balance between corn supply and demand. The report comes as the US harvest advances and international corn prices remain under pressure. On the Chicago Board of Trade, the December contract closed October down more than 10% and ended below US$ 4.50 per bushel.
VDD Analysis
The less the market depends on decisions that distort prices, the better producers can read their own reality. The September slowdown is a warning sign, but not a reason for panic: corn use for ethanol remains above where it was a year ago. It will be worth watching whether the slowdown is confirmed in the next reports.
