# Slowdown in ethanol production affects livestock industry – Wyoming Livestock Roundup

> Iowa State Extension beef specialist Dan Loy says COVID-19 has cut ethanol plant output by as much as 50 percent. Lower gasoline and ethanol use has reduced the supply of distillers' grains that cattle and hog producers relied on as feed. Producers are now having to relearn how to use corn in rations.

- Date: 2020-08-08 · published 2020-08-08T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/51711-slowdown-in-ethanol-production-affects-livestock-industry-wyoming-livestock
- Commodities: [DDGS](https://feedsoft.ai/c/DDGS.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Less DDGS availability forces feeders to replace it with corn and other ingredients, lifting DDGS prices while softening corn demand from ethanol. The tighter co-product supply is a cost concern for livestock feeders.

## Read by commodity

- CORN: bearish ▼
- DDGS: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2017-02-06 | [Lower Corn Prices Encouraging Ethanol Production \| Energy.AgWired.com](https://feedsoft.ai/events/72481-lower-corn-prices-encouraging-ethanol-production-energy-agwired-com.md) | -0.0% | +1.3% |
| CORN | 2021-01-21 | [COVID causes ethanol losses: Sharpest downturn in industry history – AgriNews](https://feedsoft.ai/events/49267-covid-causes-ethanol-losses-sharpest-downturn-in-industry-history-agrinews.md) | +3.8% | +2.7% |
| CORN | 2021-01-25 | [European ethanol producers to scale back production in Q2 as margins crash  : The Daily Digest](https://feedsoft.ai/events/49156-european-ethanol-producers-to-scale-back-production-in-q2-as-margins-crash-the.md) | +8.0% | +4.2% |
| CORN | 2020-03-13 | [U.S. ethanol industry 'bleeding' on oil collapse, coronavirus](https://feedsoft.ai/events/54132-u-s-ethanol-industry-bleeding-on-oil-collapse-coronavirus.md) | -4.2% | -1.9% |
| CORN | 2020-11-04 | [Ethanol industry still recovering from COVID hit - Farm and Dairy](https://feedsoft.ai/events/50138-ethanol-industry-still-recovering-from-covid-hit-farm-and-dairy.md) | +1.8% | +8.9% |

## Sources

- wylr.net: https://www.wylr.net/2020/08/08/slowdown-in-ethanol-production-affects-livestock-industry/

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