# Trade War Shifting Feed Demand Amid Ethanol Production Cuts | Hoosier Ag Today

> Trade war effects are reducing U.S. ethanol production, which is raising the cost of distillers dried grains used in animal feed. Reuters reports that cuts are tightening DDGS supply and pushing livestock buyers toward soybean meal, whose price fell after China halted U.S. soybean imports. The shift is concentrated in the hog sector, and China has stopped buying U.S. DDGS.

- Date: 2019-01-22 · published 2019-01-22T12:00:00.000Z
- Category: trade · region US · magnitude medium
- Page: https://feedsoft.ai/events/61094-trade-war-shifting-feed-demand-amid-ethanol-production-cuts-hoosier-ag-today
- Commodities: [DDGS](https://feedsoft.ai/c/DDGS.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

Tighter DDGS supply lifts feed costs for hog producers and moves demand into soymeal, pressuring soymeal prices.

## Read by commodity

- SBM: bearish ▼
- DDGS: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBM | 2019-01-17 | [Trade war shifts feed for U.S. hogs away from ethanol byproduct By Reuters](https://feedsoft.ai/events/61092-trade-war-shifts-feed-for-u-s-hogs-away-from-ethanol-byproduct-by-reuters.md) | +0.7% | -1.5% |
| SBM | 2020-12-01 | [Trade War Shifts Feed for U.S. Hogs from DDGs \| Feed & Grain](https://feedsoft.ai/events/49640-trade-war-shifts-feed-for-u-s-hogs-from-ddgs-feed-and-grain.md) | -1.7% | +8.6% |
| SBM | 2018-06-20 | [Pressure on Soy Market Continues with Future Issues Lurking \| Hoosier Ag Today](https://feedsoft.ai/events/64590-pressure-on-soy-market-continues-with-future-issues-lurking-hoosier-ag-today.md) | -0.2% | -1.9% |
| SBM | 2021-07-13 | [Global Soybean Trade Slows on Weaker China Demand \| Feed & Grain](https://feedsoft.ai/events/46110-global-soybean-trade-slows-on-weaker-china-demand-feed-and-grain.md) | +1.2% | +1.2% |
| SBM | 2024-10-24 | [North American Grain and Oilseed Review: Production uncertainty encourages canola demand - AgCanada](https://feedsoft.ai/events/27964-north-american-grain-and-oilseed-review-production-uncertainty-encourages.md) | -3.9% | -8.0% |

## Sources

- hoosieragtoday.com: https://www.hoosieragtoday.com/2019/01/22/trade-war-shifting-feed-demand-amid-ethanol-production-cuts/

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