Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Dec. 7 was steady at $202 per ton on average versus one week ago. DDG prices were steady on average as strength in cash soybean meal prices was supportive to the market.

USGC reported, the "DDGS/cash corn ratio is firmer this week at 1.36 and above the three-year average of 1.03. The DDGS/KC soymeal ratio rose to 0.45 this week and remains below the three-year average of 0.51."

The Energy Information Administration on Wednesday said overall ethanol production in the United States for the week ended Dec. 1 averaged 1.076 million barrels per day (bpd) in the week ended Dec. 1, up 65,000 bpd, week-on-week, while 1,000 bpd lower than in the same week last year. Four-week average output at 1.04 million bpd was 3,000 bpd above the same four weeks in 2022. Midwest ethanol production averaged 1.02 million bpd, up 70,000 bpd week-on-week and 6,000 bpd, or 0.6%, higher than in the same week last year. Four-week average output at 980,000 bpd was 2,000 bpd above the same four weeks in 2022.

In their weekly DDGS export update, the U.S. Grains Council said, "Barge CIF NOLA offers are up $3 metric ton (mt) for December and steady to up $2 for January and February this week despite declines in barge freight. FOB NOLA offers steady to $1 higher for December through February shipment and average $285 mt for spot shipment. Prices for containerized DDGS shipped to Southeast Asia are lower this week amid the recent pullback in ocean freight rates. Late December offers are down $6 mt at $323 C&F Southeast Asia with January and February offers down $5 at $322 mt."

USGC noted, "USDA's monthly Grain Crushings report featured 11.722 million metric tons (mmt) of corn used for fuel ethanol production in October, a figure up 7.3% from the prior month and up 2.9%, year-over-year. DDGS production rose 5.6% from September and hit 1.63 mmt, also up 2.9% from the prior year. Corn gluten feed production fell 1% from October 2022 to 240,000 MT while corn gluten meal output rose 0.6% to 110,000 mt."

Note: All prices subject to change/confirmation.

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

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