Market Matters Blog

OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was steady to 1 cent higher at $142 per ton for the week ended March 7 versus the prior week. Prices have been flat recently, on average, and for the month of February. The DTN average price was steady at $141 per ton.

Spot truck values collected by DTN are slightly higher on average, with another increase noted in California prices. Weekly Class 1 railroad service updates sent to the Surface Transportation Board show that most rail carriers who serve California have a backlog of cars to deliver because of the continued rain causing ongoing flooding there in the past few weeks, hampering rail movement.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended March 7 was at 111.69%. The value of DDG relative to soybean meal was at 47.02%. The cost per unit of protein for DDG was $5.26, compared to the cost per unit of protein for soybean meal at $6.36.

In its weekly DDGS update, the U.S. Grains Council noted that FOB vessel U.S. Gulf for April delivery is at $227 per metric ton (down slightly from the prior week). "The industry expects another month of challenging logistics on the Mississippi river system as a result of weather. U.S. rail rates were unchanged for nearby delivery. Internationally, 40-foot containers to Southeast Asia (March delivery) were down $2 per metric ton (mt) for April delivery, on average."

The U.S. Census Bureau reported on March 6 that U.S. exports of DDGS totaled 890,491 mt in December, down from 1,016,544 mt in November and down 9% from a year ago. U.S. DDGS continue to find broad interest with Mexico, Vietnam, Indonesia, Thailand and South Korea listed as the top five destinations. 2018 ended with exports of U.S. DDGS up 8% from a year ago.

**

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

Follow her on Twitter @MaryCKenn

(AG)

© Copyright 2019 DTN/The Progressive Farmer. All rights reserved.