Market Matters Blog

OMAHA (DTN) -- The average distillers dried grains (DDG) spot price from the 40 locations DTN contacted was lower this week at an average of $122 per ton for the week ended July 12, down $4 versus two weeks ago.

Merchandisers noted that DDG prices have come under pressure again from the move lower in soymeal values. Also, there is plenty of product to go around, and recent extreme hot temperatures added a little pressure as well to prices as animals don't eat as much when it is so hot. The cheaper corn price is the biggest culprit, because values have been shrinking thanks to the tension surrounding the trade war of the U.S versus China and other EU countries.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended July 12 was at 101.51%, and the value of DDG relative to soybean meal was at 36.59%. The cost per unit of protein for DDG was $4.52, compared to the cost per unit of protein for soybean meal at $7.02.

In its weekly DDGS price update, the U.S. Grains Council (USGC) noted, "DDGS prices for CIF NOLA (New Orleans, Louisiana), FOB Gulf, rail delivered PNW (Pacific Northwest), and rail delivered California steadied and showed slight increases this week. Internationally, container routes to Southeast Asia fell on average $5 per metric ton and merchandisers expect renewed buying interest soon."

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Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

(AG)

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