Ethanol Blog

Merchandisers described the past week as quiet, as the dried distillers grains market maintained a status quo while harvest progresses.

The DTN weekly spot price average remained unchanged from last week at $207 per ton. This comes after five weeks of a steady downward trend, as prices fell from $227 per ton the first week of September to last week's $207 average.

Of the 30 Midwestern locations DTN collects prices from, 21 locations reported that their prices remained unchanged since last week. Prices at seven locations decreased from last week between $3 and $10, while only two prices were reported at $5 and $10.

Merchandisers told DTN that everyone seems to be waiting for the harvest to finish and new crop corn to come in. Meanwhile, buyers seem to be buying hand-to-mouth until harvest is further along and exports continued to lead the way, as demand remains strong, despite national holidays that closed markets in Europe and Japan in the past week.

The value of DDG relative to corn this week was at about 130.84%, however, that number is somewhat distorted. 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 about 50.12%.

The cost per unit of protein for DDG was $8.28 this week, compared to the cost per unit of protein for soybeans at $8.69.

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

(ES)

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