Ethanol Blog

Prices of dried distillers grain remained relatively unchanged in the past week, falling a mere $1 per ton amid a volatile week on the corn board.

The DTN weekly DDG spot price average fell just $1 per ton in the past week, from $226 per ton to $225 per ton this week. The average has now fallen for the fourth week in a row, though only $5 per ton in that time period, from $230 during the last week of July to the current $225 per ton. However, this is the lowest level the average has reached since early May. Prices have hovered between $225 per ton and $235 since mid-April.

Of the 30 Midwestern locations DTN collects prices from, 10 locations reported their prices had decreased between $2 and $5 in the past week. Prices at only five locations increased between $2 and $5 since last week, and 15 locations said their prices remained unchanged since last week.

Merchandisers told DTN that prices remained relative unchanged, with only slight adjustments up or down in certain markets. This follows a week of volatility in corn prices, increasing about 16 cents on Thursday following slight decreases earlier in the week. As harvest approaches, buyers seem to be getting nervous about weather and crops, and want to buy discounted product.

The value of DDG relative to corn this week was at about 130.84%; however, that is a distorted number. The abrupt shift in the DDG to corn ratio after July 12 is due to the transition from July corn futures to the lower-priced September corn contract. The value of DDG relative to soybean meal was at 54.90%.

The cost per unit of protein for DDG was at about $9 this week, compared to the cost per unit of protein for soybeans at $8.63.

Cheryl Anderson can be reached at Cheryl.anderson@telventdtn.com.

(ES)

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