# Shuttered ethanol plants weigh heavy on corn markets

> At least three dozen U.S. ethanol plants have shut down and about three dozen more are slowing production, with roughly 130 plants still operating. Reported operating margins of negative 20 to 30 cents per gallon are pushing more plants to curtail output as oil price war and COVID-19 demand losses persist.

- Date: 2020-04-10 · published 2020-04-10T12:00:00.000Z
- Category: market · region US · magnitude medium
- Page: https://feedsoft.ai/events/53645-shuttered-ethanol-plants-weigh-heavy-on-corn-markets
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

Ethanol output cuts remove a major source of corn demand and reduce DDGS supply, which weighs on corn prices and tightens feed byproduct supplies for livestock buyers.

## Read by commodity

- CORN: bearish ▼
- DDGS: bullish ▲

## Sources

- farmprogress.com: https://www.farmprogress.com/marketing/shuttered-ethanol-plants-weigh-heavy-on-corn-markets

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