# Midweek Markets: Why ethanol production fizzled

> 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.

- Date: 2021-02-25 · published 2021-02-25T12:00:00.000Z
- Category: weather · region US · magnitude medium
- Page: https://feedsoft.ai/events/48752-midweek-markets-why-ethanol-production-fizzled
- Commodities: [DDGS](https://feedsoft.ai/c/DDGS.md), [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

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.

## Read by commodity

- DDGS: bullish ▲
- NATGAS: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| NATGAS | 2021-02-16 | [Some U.S. ethanol producers reduce production to sell natural gas for a profit](https://feedsoft.ai/events/48631-some-u-s-ethanol-producers-reduce-production-to-sell-natural-gas-for-a-profit.md) | -27.6% | -40.0% |
| NATGAS | 2026-08-31 | [US natgas prices rise to five-week high on LNG export hopes - Markets - Business Recorder](https://feedsoft.ai/events/18058-us-natgas-prices-rise-to-five-week-high-on-lng-export-hopes-markets-business.md) | +3.3% | +7.4% |
| NATGAS | 2021-02-25 | [Natural Gas Production in Texas Dropped 45% Amid Historic Freeze](https://feedsoft.ai/events/48846-natural-gas-production-in-texas-dropped-45-amid-historic-freeze.md) | +0.4% | -10.2% |
| NATGAS | 2023-05-10 | [Alberta wildfires shut in gas production, hiking prices, slashing exports](https://feedsoft.ai/events/36126-alberta-wildfires-shut-in-gas-production-hiking-prices-slashing-exports.md) | +3.8% | -0.7% |
| NATGAS | 2026-09-04 | [US natgas prices rise to 8-week high on LNG flows, warm weather - Markets - Business Recorder](https://feedsoft.ai/events/17652-us-natgas-prices-rise-to-8-week-high-on-lng-flows-warm-weather-markets-business.md) | -5.5% | +1.2% |

## Sources

- farmprogress.com: https://www.farmprogress.com/marketing/midweek-markets-why-ethanol-production-fizzled

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