Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Nov. 2 was mixed but higher, up $1 at $198 per ton on average versus one week ago. DDG prices this week are finding support from the rail market demand and despite a lower cash corn price from last week. The DTN National Corn Index is down 8 cents versus one week ago.

The Energy Information Administration (EIA) at midweek reported for the week ended Oct. 27 overall ethanol production in the United States averaged 1.052 million barrels per day (bpd), the Energy Information Administration reports, up 12,000 bpd week-on-week and 12,000 bpd, or 1.1%, higher than in the same week last year. Four-week average output at 1.033 million bpd was 28,000 bpd above the same four weeks in 2022. Midwest ethanol production averaged 993,000 bpd, up 6,000 bpd week-on-week and 12,000 bpd, or 1.2%, higher than in the same week last year. Four-week average output at 979,000 bpd was 30,000 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 Nov. 02 was 1.18%. The value of DDG relative to soybean meal was 46.45 and the cost per unit of protein for DDG was $7.33 compared to the cost per unit of protein for soybean meal at $8.97.

In the monthly Grain Crushings and Co-Products Production report, USDA said "Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.70 million tons during September 2023, down 5% from August 2023 but up 5% from September 2022. Distillers wet grains (DWG) 65% or more moisture was 1.31 million tons in September 2023, up 1% from August 2023 and up 5% from September 2022."

In their weekly DDGS export update, the U.S. Grains Council said, "Demand for the rail market is, by extension, supporting prices along the river system and in the export market. Barge CIF NOLA offers are up $14 metric ton (mt) for November this week and are up $12 to $13 for December through January. FOB NOLA offers are $14 mt higher for spot positions and are up $9 to $10 for December and early 2024 positions. Prices for containerized DDGS to Southeast Asia have not escaped the rally and are up $16 mt for November this week at $315 mt with December and January shipments up $13 and $14, respectively."

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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