Low oil prices limit demand for ethanol

A combination of the Saudi-Russian oil war and social distancing from Coronavirus has caused oil demand to drop. Low oil prices have caused demand for ethanol fuel, derived from corn, to fall as well and this is significantly affecting ethanol producers across Canada and the United States. Many producers are seeing thin or non-existent margins causing plants to close or consider stopping operations. Lower production of ethanol will also decrease the availability of DDGS, a by-product of ethanol production.