Ethanol plants and DDG facilities closing is a hit to the livestock industry. This is as some producers begin to switch feed rations based on price, availability and in an effort to keep weights from getting too high.
Despite a wild fall, National Oceanic and Atmospheric Administration (NOAA) expects a warmer-than-normal winter for the western two-thirds of the U.S. They don’t expect any areas with cooler-than-normal conditions.
Ethanol prices are in a free fall due to fewer people driving and a recent price war. As some ethanol plants shutter production, facilities may start producing for DDGs to meet the possible upcoming Chinese demand.
Gas prices are falling, but few can take advantage of the low prices as “social distancing” and increasingly stringent COVID-19 prevention restrictions keep people off of the roads and ethanol demand could fall.