Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended June 22 was $208 per ton, up $2 on average from one week ago. DDG prices were mixed this week but turned higher on average thanks to support from the strength in the corn and soybean markets recently. Given corn futures are in a weather market mode right now, DDG and other corn feed prices could become volatile during the rest of the growing season.

The Energy Information Administration (EIA) at midweek showed overall ethanol production in the United States averaged 1.052 million barrels per day (bpd), up 34,000 bpd week-on-week and 3,000 bpd, or 0.3% lower than in the same week last year. Four-week average output at 1.027 million bpd was 29,000 bpd below the same four weeks in 2022. Midwest ethanol production averaged 990,000 bpd, up 29,000 bpd week-on-week and 6,000 bpd, or 0.6% lower than in the same week last year. Four-week average output at 970,000 bpd was 27,000 bpd below the same four weeks in 2022.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended June 22 was 0.88%. The value of DDG relative to soybean meal was 48.98% and the cost per unit of protein for DDG was $7.70 compared to the cost per unit of protein for soybean meal at $8.94.

In its weekly DDGS export update, the U.S. Grains Council said: "Barge CIF NOLA DDGS offers are $22 metric ton (mt) higher this week amid firming barge freight and rising offers for product destined for the river system. FOB NOLA offers are higher as well but lag the gains of the CIF market with July offers up $16 mt at $281 and August/September up $17 at $279 to $280 mt. U.S. rail rates are up $10 mt for the spot market and $12 for August/September while offers for 40-foot containers to Southeast Asia are up $6 mt at $330 for July shipment."

The Lower and Upper Mississippi River is experiencing low water right now and drafts and tow sizes have been cut. American Commercial Barge Line noted, "Due to the falling river, ACBL implemented a 20% draft reduction for loadings in the Gulf to Cairo and a 15% draft reduction from Cairo to the Gulf. ACBL implemented a 10' draft restriction for loadings in the Gulf to the Ohio River. Additionally, we are implementing a 10' draft reduction from Cincinnati to Owensboro; 10'6" Owensboro off the Ohio." The current level at St. Louis is 1.2 feet and is expected to fall below zero gauge by early July without rain. The level at Memphis is at -4.5 feet below zero gauge and is expected to fall to -7 feet by early July.

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

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

Follow her on Twitter @MaryCKenn

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