# How COVID-19 impacted grain, energy markets this week

> AgMarket.Net's Matt Bennett reports that Covid-19 fears drove volatile, mostly deflationary grain and energy trading in the week to March 20. Crude fell about $27 a barrel over ten sessions, pushing ethanol prices down 22 cents. Corn was in a sell-off, with some in the industry expecting a 50 to 60 cent drop on ethanol weakness alone.

- Date: 2020-03-20 · published 2020-03-20T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/7427-how-covid-19-impacted-grain-energy-markets-this-week
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

Lower ethanol prices cut the margin support for corn, and cheaper diesel and fertilizer costs ease farm input pressure, leaving the net bias bearish for corn.

## Read by commodity

- WTI: bearish ▼
- CORN: bearish ▼
- DIESEL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| CORN | 2020-03-23 | 1 | -2.1% | -3.1 | Crude's sharp drop pushed ethanol prices down and prompted a corn sell-off, with analysts expecting further downside from ethanol weakness alone, an energy-linked demand channel. |
| WTI | 2020-03-20 | 1 | -15.5% | -3.6 | Describes crude falling about $27 a barrel over ten sessions on COVID-19 fears, the same demand shock behind the 20 March drop. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2020-04-26 | [Oil price crash, COVID-19 weaken grains and oilseed markets](https://feedsoft.ai/events/53733-oil-price-crash-covid-19-weaken-grains-and-oilseed-markets.md) | -0.7% | -0.3% |
| CORN | 2020-04-10 | [Markets starting to reveal new demand paradigms — this week in the grain markets - RealAgriculture](https://feedsoft.ai/events/53693-markets-starting-to-reveal-new-demand-paradigms-this-week-in-the-grain-markets.md) | -5.4% | -6.1% |
| CORN | 2016-08-29 | [Fed impact on markets still in play](https://feedsoft.ai/events/10616-fed-impact-on-markets-still-in-play.md) | -0.6% | +1.8% |
| CORN | 2020-01-01 | [Cattle market shaken by COVID-19](https://feedsoft.ai/events/55236-cattle-market-shaken-by-covid-19.md) | -0.6% | -0.2% |
| CORN | 2020-03-30 | [Ethanol Market Is Disturbing to American Farmers. And Now There's Covid-19.](https://feedsoft.ai/events/54231-ethanol-market-is-disturbing-to-american-farmers-and-now-there-s-covid-19.md) | +3.6% | -5.7% |
| WTI | 2020-04-26 | [Oil price crash, COVID-19 weaken grains and oilseed markets](https://feedsoft.ai/events/53733-oil-price-crash-covid-19-weaken-grains-and-oilseed-markets.md) | +21.1% | +105.0% |
| WTI | 2020-04-10 | [Markets starting to reveal new demand paradigms — this week in the grain markets - RealAgriculture](https://feedsoft.ai/events/53693-markets-starting-to-reveal-new-demand-paradigms-this-week-in-the-grain-markets.md) | -19.9% | +5.3% |
| WTI | 2020-10-26 | [Stock markets slide as Covid-19 cases rise](https://feedsoft.ai/events/8190-stock-markets-slide-as-covid-19-cases-rise.md) | -10.3% | +5.7% |

## Sources

- farmprogress.com: https://www.farmprogress.com/corn/how-covid-19-impacted-grain-energy-markets-this-week

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