# The Rapid Demise of the Corn Basis

> The national average corn basis has fallen from its early-March peak as ethanol plants cut production or went offline. Gasoline below $1 per gallon has pushed ethanol prices down and plant margins under pressure, leading plants to pull or lower corn bids.

- Date: 2020-03-30 · published 2020-03-30T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/54230-the-rapid-demise-of-the-corn-basis
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

With nearly 40% of U.S. corn going to ethanol, weaker ethanol demand lowers local cash corn bids and basis, pressuring corn prices for feed buyers.

## Read by commodity

- WTI: bearish ▼
- CORN: bearish ▼
- DDGS: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2020-08-31 | [Corn Prices Still Lag Because of Demand \| Hoosier Ag Today](https://feedsoft.ai/events/51640-corn-prices-still-lag-because-of-demand-hoosier-ag-today.md) | +0.2% | +5.4% |
| CORN | 2022-07-07 | [The recent commodity sell-off](https://feedsoft.ai/events/5055-the-recent-commodity-sell-off.md) | -0.6% | -15.3% |
| CORN | 2024-07-12 | [How bad is the Chinese economy?](https://feedsoft.ai/events/12304-how-bad-is-the-chinese-economy.md) | -2.4% | -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% |
| CORN | 2023-09-22 | [The Dollar Still Has Plenty of Swagger](https://feedsoft.ai/events/34311-the-dollar-still-has-plenty-of-swagger.md) | +1.4% | +3.0% |
| WTI | 2018-05-16 | [Corn Hands the Baton to Wheat](https://feedsoft.ai/events/10238-corn-hands-the-baton-to-wheat.md) | +1.1% | -6.6% |
| WTI | 2022-07-07 | [The recent commodity sell-off](https://feedsoft.ai/events/5055-the-recent-commodity-sell-off.md) | -2.0% | -7.4% |
| WTI | 2020-04-09 | [Return to corn-soy diets](https://feedsoft.ai/events/53958-return-to-corn-soy-diets.md) | -20.7% | -1.1% |

## Sources

- dtnpf.com: https://www.dtnpf.com/agriculture/web/Ag/blogs/market-matters-blog/blog-post/2020/03/30/rapid-demise-corn-basis

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