Market Matters Blog

OMAHA (DTN) -- Of the 40 locations DTN contacted that showed offers for domestic distillers dried grains (DDG) prices for the week ended May 7, prices posted versus last week were lower. DDG prices have moved lower in spite of lack of availability, because feeders moved on to other feed substitutes in their rations after DDG prices shot up in March as plants started to slow or stop production when oil and gasoline prices dove lower. On top of that, cash corn has been under pressure from meat plants closing and farmers slowing their feeding. While some, if not all, of those plants are coming back online, production will not yet return to its normal capability as plants follow CDC guidelines to keep workers safe.

Wednesday's Energy Information Administration ethanol report showed ethanol stocks in the U.S were drawn down a second week while blending activity inched higher and plant production increased during the week ended May 1.Greater blending activity coincides with an 804,000 barrels per day (bpd) jump in gasoline supplied to the U.S. market at 6.664 million bpd, a six-week high. U.S. ethanol plant production increased 61,000 bpd to 598,000 bpd, 3,000 bpd above blending demand after falling below the blend rate during the previous week for the first time in more than a decade. U.S. plant production is down 42.3% against year ago.

The U.S. Census Bureau said Tuesday that U.S. exports of DDGS totaled 899,730 mt in March, up from 852,904 metric tons in February, but down 6% from a year ago. Mexico was the top destination in March, taking 21% of U.S. exports and followed by Vietnam, South Korea and Indonesia. For the first three months of 2020, U.S. exports of DDGS were up 11% from a year ago.

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

© (c) Copyright 2020 DTN, LLC. All rights reserved.