# U.S. ethanol industry 'bleeding' on oil collapse, coronavirus

> U.S. ethanol margins slumped to an eight-year low for mid-March, with Corn Belt margins reaching minus 6 cents per gallon before a slight recovery. Producers blame lower fuel demand from the coronavirus and the oil price collapse, with some saying at least half the industry is losing money.

- Date: 2020-03-13 · published 2020-03-13T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/54132-u-s-ethanol-industry-bleeding-on-oil-collapse-coronavirus
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Weak margins make plant shutdowns more likely, which would cut corn grind and corn demand. Lower gasoline prices also reduce the value of the ethanol blend.

## Read by commodity

- WTI: bearish ▼
- CORN: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| CORN | 2020-03-15 | 1 | -2.6% | -3.2 | Ethanol margins at an eight-year low signal weaker corn grind demand from the oil collapse and coronavirus, bearish for corn. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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% |
| CORN | 2020-03-30 | [Corn slumps as ethanol makers feel coronavirus constraints \| Financial Post](https://feedsoft.ai/events/54164-corn-slumps-as-ethanol-makers-feel-coronavirus-constraints-financial-post.md) | +3.6% | -5.7% |
| CORN | 2020-08-08 | [Slowdown in ethanol production affects livestock industry – Wyoming Livestock Roundup](https://feedsoft.ai/events/51711-slowdown-in-ethanol-production-affects-livestock-industry-wyoming-livestock.md) | +4.0% | +9.0% |
| 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 | 2017-06-19 | [Corn use for ethanol begins to slow down](https://feedsoft.ai/events/70596-corn-use-for-ethanol-begins-to-slow-down.md) | -5.4% | -1.7% |
| WTI | 2021-03-18 | [Oil hits skids, drops 7% on worsening outlook for coronavirus in Europe](https://feedsoft.ai/events/6198-oil-hits-skids-drops-7-on-worsening-outlook-for-coronavirus-in-europe.md) | -5.3% | -1.8% |
| WTI | 2020-03-30 | [Coronavirus: Oil price collapses to lowest level for 18 years - BBC News](https://feedsoft.ai/events/5323-coronavirus-oil-price-collapses-to-lowest-level-for-18-years-bbc-news.md) | +64.1% | -28.3% |
| WTI | 2020-03-30 | [Corn slumps as ethanol makers feel coronavirus constraints \| Financial Post](https://feedsoft.ai/events/54164-corn-slumps-as-ethanol-makers-feel-coronavirus-constraints-financial-post.md) | +64.1% | -28.3% |

## Sources

- hydrocarbonprocessing.com: https://www.hydrocarbonprocessing.com/news/2020/03/us-ethanol-industry-bleeding-on-oil-collapse-coronavirus/

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