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Ethanol companies are cutting production and asking the federal government for help as gasoline demand falls during the coronavirus shutdown and the oil price war. A CEO warns that full customer tanks could force shutdowns across the industry.
The Wall Street Journal reported the Trump administration may intervene in the oil dispute.
Ethanol production cuts reduce corn grind and DDGS output, so they weaken demand for corn and feed co-products. Possible government intervention in oil could change the crude price outlook.
dtnpf.comMar 19, 2020After 310 past bearish policy events, Corn moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.6% over 20.
After 187 past neutral policy events, Crude Oil (WTI) moved a median -0.1% over 5 sessions (49% higher; middle half -4.0% to +3.5%), and +0.1% 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.
