# The Ethanol Sector's Recovery Gains Steam, But Coronavirus Headwinds Persist

> Shares of US ethanol producers such as Green Plains, REX American and Pacific Ethanol have largely recovered to pre-lockdown levels. Ethanol production margins have rebounded to near three-year highs on a 34% rise in ethanol prices since April lows, versus 7% gains in corn and natural gas. Gasoline demand remains below normal, limiting full recovery.

- Date: 2020-06-24 · published 2020-06-24T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/52615-the-ethanol-sector-s-recovery-gains-steam-but-coronavirus-headwinds-persist
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

Strong ethanol margins encourage plants to run harder, supporting corn grind demand and DDGS output. Incomplete gasoline recovery caps the upside, so corn demand from ethanol stays dependent on fuel consumption.

## Read by commodity

- CORN: bullish ▲
- DDGS: neutral

## Sources

- mnbiofuels.org: https://mnbiofuels.org/the-ethanol-sector-s-recovery-gains-steam-but-coronavirus-headwinds-persist

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