Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended Nov. 3 was $242 per ton, down $2 on average versus one week ago. DDG supplies continue to grow as plant production increased again last week, but feed demand is picking up which is good to keep supplies from becoming too burdensome.

The Energy Information Administration (EIA) Wednesday showed a fifth straight weekly increase in domestic ethanol production. Domestic ethanol production rose 7,000 barrels per day (bpd) to 1.04 million bpd as of Oct. 28, the highest since the final week of July but 6.1% below the same week in 2021. The four-week average production at 1.005 million bpd was 80,000 bpd lower than the corresponding four weeks last year. Midwest ethanol production also increased a fifth straight week, up 7,000 bpd to 981,000 bpd, the highest output rate for the producer region since the week ended July 29.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Oct. 4 was 1.00%. The value of DDG relative to soybean meal was 57.56%, and the cost per unit of protein for DDG was $8.96 compared to the cost per unit of protein for soybean meal at $8.85.

In its weekly DDGS export update, the U.S. Grains Council said: "On the export market, Barge CIF NOLA prices are $11 higher for November shipment, erasing all of last week's declines as barge rates rally again. Offers for DDGS on barges for December and January are up $7 and $4 metric ton (mt), respectively. FOB NOLA offers are up $9 for November at $345/mt for 35% pro-fat and near $335-330/mt for 34 percent pro-fat. Offers for 40-foot containers to Asia are up $10-15 at $407/mt this week."

The USDA reported this week that U.S. exports of DDGS totaled 877,745 mt in September, down from 981,020 mt in August, but up 3% from a year ago. Mexico was the top destination in September, taking 21% of U.S. exports and was followed by Vietnam and South Korea. In the first nine months of 2022, U.S. exports of DDGS were up slightly 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

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