Market Matters Blog

OMAHA (DTN) -- Many of the plants DTN contacted for DDG prices for the week ended April 16 showed no offers, but prices posted versus two weeks ago were steady to slightly weaker. Supplies remain limited, causing some feeders to turn to wheat midds, feed corn, soymeal, corn gluten feed or other substitutes. However, those markets have seen a rise in prices too.

Wednesday's Energy Information Administration ethanol report showed for the week ended April 10 that plant operators cut run rates another 15.2% to a record low 570,000 barrels per day (bpd) and have tumbled 509,000 bpd or 52.8% over the past six weeks. Even still, ethanol stocks continued to build, with domestic ethanol supply up 378,000 barrels (bbl) in the week profiled to 27.469 million bbl, 21.1% above year ago.

In its weekly update, the U.S. Grains Council noted DDG is priced at 185% of cash corn values, up from last week and well above the three-year average of 106%. "This is the third consecutive week in which the DDG/cash corn ratio reached a new record high. The DDGS/soymeal price ratio is 0.64, down fractionally from the prior week and above the three-year average of 0.42."

In the export market, USGC noted, "DDGS prices are lower this week as soymeal futures recent fall has pressured prices for that commodity and distillers grains. Barge CIF NOLA prices are down $7 per metric ton (mt) for May shipments and are $13/mt lower for June. Merchandisers report that the barge market is active but DDGS prices are moving lower to remain competitive in feed rations. FOB NOLA offers are down $12/mt for May shipment reaching $243/mt. After multiple weeks of large price gains, offers for 40-foot containers to Southeast Asia are down $24/mt this week for May shipment. The average rate for containers to Southeast Asia reached $285/mt this week, up $41/mt from this time last year."

NOTE: All prices listed below can change at any time and are subject to confirmation from seller.

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

Follow her on Twitter @MaryCKenn

(BAS/CZ)

© Copyright 2020 DTN/The Progressive Farmer. All rights reserved.