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Ethanol production dropped 28 percent in the latest week to a multi-month low of 658,000 barrels per day, driven by subzero temperatures and surging natural gas prices. Freezing temperatures may also have damaged crops in the US, Ukraine and other Black Sea countries.
South American soybean harvesting has been slowed by recent rains.
Lower ethanol output cuts DDGS supply and supports feed prices, while crop damage risk adds upward pressure on grain values. Buyers should expect firmer feed input costs in the near term.
farmprogress.comBen PotterFeb 25, 2021Not enough comparable past events yet for a historical read.
After 221 past bullish weather events, Natural Gas moved a median +3.3% over 5 sessions (61% higher; middle half -5.2% to +14.0%), and -0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
