# Ethanol Market Is Disturbing to American Farmers. And Now There's Covid-19.

> Successful Farming reports that ethanol producers face a combined shock from COVID-19 and collapsing energy prices, with roughly 40% of the U.S. corn crop going to ethanol. Industry leaders describe the situation as a perfect storm for ethanol.

- Date: 2020-03-30 · published 2020-03-30T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/54231-ethanol-market-is-disturbing-to-american-farmers-and-now-there-s-covid-19
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [DDGS](https://feedsoft.ai/c/DDGS.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Weak ethanol margins threaten corn demand from the largest domestic use, which pressures corn and co-product prices for feed buyers.

## Read by commodity

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

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2020-11-04 | [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 | 2020-03-25 | [Ethanol Plants Pushed Toward Unprofitability \| Farm Bureau Intel Markets \| American Farm Bureau Federation](https://feedsoft.ai/events/54130-ethanol-plants-pushed-toward-unprofitability-farm-bureau-intel-markets-american.md) | +5.3% | -3.8% |
| CORN | 2020-03-20 | [How COVID-19 impacted grain, energy markets this week](https://feedsoft.ai/events/7427-how-covid-19-impacted-grain-energy-markets-this-week.md) | -0.6% | -3.1% |
| CORN | 2020-03-19 | [Cash is king as emergency stimulus fails to stop market panic](https://feedsoft.ai/events/6272-cash-is-king-as-emergency-stimulus-fails-to-stop-market-panic.md) | +1.1% | -1.8% |
| CORN | 2020-04-07 | [Coronavirus Sends Crop and Livestock Prices into a Tailspin \| Farm Bureau Intel Markets \| American Farm Bureau Federation](https://feedsoft.ai/events/5743-coronavirus-sends-crop-and-livestock-prices-into-a-tailspin-farm-bureau-intel.md) | -4.0% | -6.5% |
| WTI | 2020-03-25 | [Ethanol Plants Pushed Toward Unprofitability \| Farm Bureau Intel Markets \| American Farm Bureau Federation](https://feedsoft.ai/events/54130-ethanol-plants-pushed-toward-unprofitability-farm-bureau-intel-markets-american.md) | -6.7% | -29.4% |
| WTI | 2020-03-20 | [How COVID-19 impacted grain, energy markets this week](https://feedsoft.ai/events/7427-how-covid-19-impacted-grain-energy-markets-this-week.md) | -26.8% | -27.2% |
| WTI | 2020-03-19 | [Cash is king as emergency stimulus fails to stop market panic](https://feedsoft.ai/events/6272-cash-is-king-as-emergency-stimulus-fails-to-stop-market-panic.md) | +7.3% | -3.0% |

## Sources

- agriculture.com: https://www.agriculture.com/news/business/ethanol-market-is-disturbing-as-hell-to-american-farmers-and-now-there-s-covid-19

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