Market Matters Blog

OMAHA (DTN) -- The domestic distillers dried grains average spot price from the 40 locations DTN contacted was $3 lower at $145 per ton for the week ended Jan. 24 versus the prior week.

Spot truck values collected by DTN are steady to lower this week, as some buyers have not been active in buying for the past few weeks, expecting the prices may move lower than they recently have. The extreme cold and lower ethanol plant production may give DDG demand a boost in the next few weeks.

Informa Economics noted in their weekly DDG update: "Some Iowa hog producers view 105% DDG relative value to cash corn as the line in the sand to start upping levels in rations. Currently, Iowa DDG prices are sitting near 115% on a relative value to cash corn of $3.40 a bushel, which could mean buyers want to see another $10-$15 lower DDG prices to bring back demand."

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 24 was at 107.69%. The value of DDG relative to soybean meal was at 46.43%. The cost per unit of protein for DDG was $5.37, compared to the cost per unit of protein for soybean meal at $6.57.

In their weekly DDGS update, U.S. Grains Council noted that export price indications are mostly up this week in response to a combination of strengthening demand, tightening supply, and, to some extent, logistics at the U.S. Gulf.

"February execution is limited but remains available; FOB vessel U.S. Gulf for March delivery is at $214 per metric ton (mt). Barge CIF New Orleans prices gained strength as well while U.S. rail rates were steady to slightly higher. On average, 40-foot containers to Southeast Asian markets were up $5/mt this week from last week as merchandisers reported multiple sales to Vietnam."

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

Follow her on Twitter @MaryCKenn

(BAS/SK)

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