Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Dec. 21 was mixed but steady on average at $202 per ton versus one week ago. While DDG prices on average were mixed, the market has a weaker tone overall. Feeders have not been buying large quantities due in part to the warmer weather we are seeing across the country.

The Energy Information Administration on Wednesday said overall ethanol production in the United States averaged 1.071 million barrels per day (bpd) in the week ended Dec. 15, the Energy Information Administration reports, down 3,000 bpd week-on-week and 42,000 bpd, or 3.9%, higher than in the same week last year. Four-week average output at 1.058 million bpd was 12,000 bpd above the same four weeks in 2022. Midwest ethanol production averaged 1.009 million bpd, down 5,000 bpd week-on-week and 34,000 bpd, or 3.4%, higher than in the same week last year. Four-week average output at 998,000 bpd was 10,000 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 Dec. 21 was 1.20%. The value of DDG relative to soybean meal was 51.09 and the cost per unit of protein for DDG was $7.48 compared to the cost per unit of protein for soybean meal at $8.32.

In their weekly DDGS export report, U.S. Grains Council said, "Barge CIF NOLA offers are down $3 metric ton (mt) for January and down $4 to $5 for February and March this week amid continued declines in barge freight. Brokers note that sellers are trying to move barges, which is largely responsible for the weakness. FOB NOLA offers are down $5 at $275 mt for January shipment and down $7 to $8 mt for February and March. Prices for containerized DDGS shipped to Southeast Asia are $5 mt lower this week due to lower values in the U.S. domestic market and steady/lower ocean freight markets. January offers average $318 mt C&F Southeast Asia with a -$3 mt carry into February and a flat carry across March, April and May."

Note: All prices subject to change/confirmation.

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

Follow her on X, formerly known as Twitter, @MaryCKenn

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