# Energy Markets Erode Ethanol Margins

> 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.

- Date: 2020-03-19 · published 2020-03-19T12:00:00.000Z
- Category: policy · region US · magnitude medium
- Page: https://feedsoft.ai/events/54133-energy-markets-erode-ethanol-margins
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

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.

## Read by commodity

- WTI: neutral
- CORN: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2019-03-16 | [U.S. ethanol market sees first sales decline in decades](https://feedsoft.ai/events/60070-u-s-ethanol-market-sees-first-sales-decline-in-decades.md) | +2.6% | -3.5% |
| CORN | 2018-04-02 | [How EPA is Destroying Demand for Ethanol and Corn \| Energy.AgWired.com](https://feedsoft.ai/events/65399-how-epa-is-destroying-demand-for-ethanol-and-corn-energy-agwired-com.md) | +2.3% | +3.1% |
| CORN | 2019-08-30 | [Interview: Ringneck Energy looks to avoid US ethanol industry's woes: CEO](https://feedsoft.ai/events/57583-interview-ringneck-energy-looks-to-avoid-us-ethanol-industry-s-woes-ceo.md) | -2.4% | +1.4% |
| CORN | 2025-10-03 | [Argentina Export Tax Shock Hits Grain Markets](https://feedsoft.ai/events/13828-argentina-export-tax-shock-hits-grain-markets.md) | +0.3% | +1.2% |
| CORN | 2021-06-24 | [Corn Market 271 \| Maiz'Europ'](https://feedsoft.ai/events/46612-corn-market-271-maiz-europ.md) | +4.6% | -5.8% |
| WTI | 2021-10-05 | [OPEC+ maintains its production policy for November – EnergyScan](https://feedsoft.ai/events/44448-opec-maintains-its-production-policy-for-november-energyscan.md) | +3.8% | +8.3% |
| WTI | 2021-05-31 | [OPEC + presents market prospects](https://feedsoft.ai/events/47015-opec-presents-market-prospects.md) | +4.4% | +10.0% |
| WTI | 2022-05-05 | [OPEC+ opens oil taps gradually as Russian war roils markets \| AP News](https://feedsoft.ai/events/41318-opec-opens-oil-taps-gradually-as-russian-war-roils-markets-ap-news.md) | -2.1% | +8.4% |

## Sources

- dtnpf.com: https://www.dtnpf.com/agriculture/web/ag/news/business-inputs/article/2020/03/19/industry-officials-call-trump?referrer=twitter

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