# Lower Corn Prices Encouraging Ethanol Production | Energy.AgWired.com

> University of Illinois economist Gary Schnitkey said farm finances are deteriorating while corn stays below four dollars a bushel. Lower corn prices and higher petroleum prices have improved ethanol margins, and much of the added output is expected to be exported.

- Date: 2017-02-06 · published 2017-02-06T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/72481-lower-corn-prices-encouraging-ethanol-production-energy-agwired-com
- 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

Cheap corn encourages ethanol output and DDGS supply, which can cap feed co-product prices, while weak farm incomes may pressure acreage and inputs.

## Read by commodity

- WTI: bullish ▲
- CORN: bearish ▼
- DDGS: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2020-11-17 | [Ethanol Plants Could Soon Start Producing for DDGs, Not Ethanol - AgWeb](https://feedsoft.ai/events/50135-ethanol-plants-could-soon-start-producing-for-ddgs-not-ethanol-agweb.md) | +1.1% | +0.3% |
| CORN | 2020-08-08 | [Slowdown in ethanol production affects livestock industry – Wyoming Livestock Roundup](https://feedsoft.ai/events/51711-slowdown-in-ethanol-production-affects-livestock-industry-wyoming-livestock.md) | +4.0% | +9.0% |
| CORN | 2020-09-23 | [Corn ends lower on strong dollar](https://feedsoft.ai/events/11767-corn-ends-lower-on-strong-dollar.md) | -0.0% | +6.4% |
| CORN | 2021-01-25 | [European ethanol producers to scale back production in Q2 as margins crash  : The Daily Digest](https://feedsoft.ai/events/49156-european-ethanol-producers-to-scale-back-production-in-q2-as-margins-crash-the.md) | +8.0% | +4.2% |
| 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% |
| WTI | 2021-09-24 | [Worldwide energy shortage shows up in surging coal, gas and oil prices: Kemp](https://feedsoft.ai/events/7927-worldwide-energy-shortage-shows-up-in-surging-coal-gas-and-oil-prices-kemp.md) | +2.4% | +12.5% |
| WTI | 2026-04-30 | [Ringgit closes lower on volatile oil prices \| The Star](https://feedsoft.ai/events/19961-ringgit-closes-lower-on-volatile-oil-prices-the-star.md) | -10.8% | -16.4% |
| WTI | 2017-05-11 | [USD/CAD: a lift in oil prices coming?  - Nomura — Octa](https://feedsoft.ai/events/71240-usd-cad-a-lift-in-oil-prices-coming-nomura-octa.md) | +3.7% | -3.4% |

## Sources

- energy.agwired.com: https://energy.agwired.com/2017/02/06/lower-corn-prices-encouraging-ethanol-production/

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