# European ethanol producers to scale back production in Q2 as margins crash  : The Daily Digest

> Platts reports European ethanol producers plan significant Q2 production cuts because crush margins are among the lowest on record. Pandemic-driven gasoline demand losses are combined with rising feedstock prices, with margins reported at negative EUR369 per cubic meter for wheat and negative EUR233 for corn.

- Date: 2021-01-25 · published 2021-01-25T12:00:00.000Z
- Category: macro · region Europe · magnitude low
- Page: https://feedsoft.ai/events/49156-european-ethanol-producers-to-scale-back-production-in-q2-as-margins-crash-the
- Commodities: [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Cutting European ethanol output lowers grain demand for wheat and corn feedstock. Weak fuel demand and rising feedstock costs point to bearish pressure on EU grain-based ethanol use.

## Read by commodity

- CORN: bearish ▼
- WHEAT: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WHEAT | 2020-03-09 | [The Sprout: Agriculture futures slip as stock market falls in reaction to oil price drop - iPolitics](https://feedsoft.ai/events/11276-the-sprout-agriculture-futures-slip-as-stock-market-falls-in-reaction-to-oil.md) | +6.0% | -2.1% |
| WHEAT | 2021-02-27 | [Commodity returns plunge the most in months amid stronger dollar](https://feedsoft.ai/events/48541-commodity-returns-plunge-the-most-in-months-amid-stronger-dollar.md) | +1.8% | -0.5% |
| WHEAT | 2022-06-28 | [Argentina's economic crisis whack-a-mole goes into overdrive \| Reuters](https://feedsoft.ai/events/41227-argentina-s-economic-crisis-whack-a-mole-goes-into-overdrive-reuters.md) | -7.7% | -16.6% |
| WHEAT | 2016-11-09 | [Corn, wheat drop more than 1 percent as Trump wins White House - Agweek \| #1 source for agriculture news, farming, markets](https://feedsoft.ai/events/73885-corn-wheat-drop-more-than-1-percent-as-trump-wins-white-house-agweek-1-source.md) | +0.8% | -0.1% |
| WHEAT | 2020-03-12 | [Fear is the price killer in commodity markets - Manitoba Co-operator](https://feedsoft.ai/events/8373-fear-is-the-price-killer-in-commodity-markets-manitoba-co-operator.md) | -4.3% | -5.8% |
| CORN | 2020-08-08 | [Slowdown in ethanol production affects livestock industry – Wyoming Livestock Roundup](https://feedsoft.ai/events/51711-slowdown-in-ethanol-production-affects-livestock-industry-wyoming-livestock.md) | +4.0% | +9.0% |
| CORN | 2022-10-01 | [Most Wholesale Nitrogen Fertilizer Prices Rise in August on Wave of Production Curtailments at European Plants](https://feedsoft.ai/events/39888-most-wholesale-nitrogen-fertilizer-prices-rise-in-august-on-wave-of-production.md) | +1.0% | +2.9% |
| CORN | 2020-03-30 | [Ethanol Market Is Disturbing to American Farmers. And Now There's Covid-19.](https://feedsoft.ai/events/54231-ethanol-market-is-disturbing-to-american-farmers-and-now-there-s-covid-19.md) | +3.6% | -5.7% |

## Sources

- biofuelsdigest.com: https://biofuelsdigest.com/european-ethanol-producers-to-scale-back-production-in-q2-as-margins-crash/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.