# U.S. ethanol plants cutting output due to crashing demand

> The Renewable Fuels Association says U.S. ethanol producers expect about 2 billion gallons of annualized output to be offline by the end of the week of March 26 due to collapsing fuel demand. The Iowa State ethanol margin fell to a seven-year low of minus 9.68 cents per gallon. Iowa senators also asked the administration to enforce a court ruling limiting small refinery waivers.

- Date: 2020-03-26 · published 2020-03-26T12:00:00.000Z
- Category: logistics · region US · magnitude high
- Page: https://feedsoft.ai/events/54131-u-s-ethanol-plants-cutting-output-due-to-crashing-demand
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Output cuts of roughly 2 billion gallons reduce corn grind and DDGS supply, which is bearish for corn demand. Continued weak crude and gasoline demand keeps pressure on the ethanol complex.

## Read by commodity

- WTI: bearish ▼
- CORN: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2022-12-01 | [U.S. Corn Demand Stumbles Early in 2022-23](https://feedsoft.ai/events/38242-u-s-corn-demand-stumbles-early-in-2022-23.md) | -3.3% | +1.9% |
| CORN | 2022-10-07 | [Slow US demand puts the brakes on wheat - Mecardo](https://feedsoft.ai/events/5089-slow-us-demand-puts-the-brakes-on-wheat-mecardo.md) | +2.0% | +0.2% |
| CORN | 2022-05-12 | [Grain silo explosion, fire shutters Illinois ethanol plant \| Reuters](https://feedsoft.ai/events/41397-grain-silo-explosion-fire-shutters-illinois-ethanol-plant-reuters.md) | -0.3% | -0.9% |
| CORN | 2021-12-20 | [Commodities 2022: Logistical challenges to weigh on US ethanol](https://feedsoft.ai/events/43603-commodities-2022-logistical-challenges-to-weigh-on-us-ethanol.md) | -2.3% | -2.0% |
| CORN | 2024-03-25 | [US southbound barge demand falls off earlier than usual \| Latest Market News](https://feedsoft.ai/events/31382-us-southbound-barge-demand-falls-off-earlier-than-usual-latest-market-news.md) | -4.9% | -6.9% |
| WTI | 2020-04-21 | [Cushing storage hub constraints key to historic WTI crude oil price collapse](https://feedsoft.ai/events/53813-cushing-storage-hub-constraints-key-to-historic-wti-crude-oil-price-collapse.md) | -32.4% | +73.9% |
| WTI | 2021-02-26 | [Texas, Midwest refiners thaw out their plants after polar vortex](https://feedsoft.ai/events/48821-texas-midwest-refiners-thaw-out-their-plants-after-polar-vortex.md) | +0.6% | -7.8% |
| WTI | 2019-05-29 | [Midwest flooding disrupts U.S. crude, fuel cash markets](https://feedsoft.ai/events/10414-midwest-flooding-disrupts-u-s-crude-fuel-cash-markets.md) | -9.3% | -2.2% |

## Sources

- hydrocarbonprocessing.com: https://www.hydrocarbonprocessing.com/news/2020/03/us-ethanol-plants-cutting-output-due-to-crashing-demand/

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