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US feed manufacturers are reformulating diets because shortages of distillers' grains and rendering byproducts have followed ethanol plant idling and meat processing closures tied to COVID-19. About half of US ethanol capacity is idle as fuel demand drops.
The American Feed Industry Association says the shortages are localized and that substitutes such as corn are filling gaps.
Losing DDGS and meat-and-bone meal supply pushes buyers toward soybean meal and corn, which lifts their prices while weakening corn demand from ethanol.
world-grain.comSusan ReidyApr 24, 2020Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
After 167 past bullish logistics events, Soybean Meal moved a median +0.5% over 5 sessions (54% higher; middle half -1.8% to +2.9%), and -1.2% over 20.
After 359 past bearish logistics events, Corn moved a median -0.3% over 5 sessions (44% higher; middle half -1.5% to +1.5%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
