Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Oct. 5 was mixed but slightly lower at $194 per ton, down $1 on average from one week ago. Demand has been steady and the cash corn price has improved. The DTN National Corn Index is up 11 cents versus one week ago.

The Energy Information Administration (EIA) at midweek reported for the week ended Sept. 29 overall ethanol production in the United States averaged 1.009 million barrels per day (bpd), unchanged from the prior week and 120,000 bpd, or 11.9%, higher than in the same week last year. Four-week average output at 1.009 million bpd was 107,000 bpd above the same four weeks in 2022. Midwest ethanol production averaged 958,000 bpd, up 7,000 bpd week-on-week and 118,000 bpd, or 12.3%, higher than in the same week last year. Four-week average output at 954,000 bpd was 106,000 bpd above 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 Oct 05 was 1.09%. The value of DDG relative to soybean meal was 51.93 and the cost per unit of protein for DDG was $7.19 compared to the cost per unit of protein for soybean meal at $7.87.

In their weekly DDGS export update, the U.S. Grains Council said, "Rates for DDGS delivered by rail to key U.S. locations are down $3 to $5 metric ton (mt) this week and extended last week's weakness. Barge CIF NOLA DDGS offers are $2 to $3 mt higher this week at $258 mt and FOB Gulf offers for October are up $3 mt this week, while November and December positions are up $1 to $2 mt. Offers for 40-foot containers to Southeast Asia are $3 to $5 mt lower this week at $297 mt for spot positions."

USDA used recently released monthly U.S. Census Bureau data to provide more details for DDGS exports. USDA noted U.S. exports of DDGS totaled 947,326 mt in August, down from 993,018 mt in July and down 2% from a year ago. Mexico was the top destination in August, taking 25% of U.S. exports, followed by Vietnam and Indonesia. In the first eight months of 2023, exports of DDGS were down 8% from a year ago.

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 X, formerly known as Twitter, @MaryCKenn

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