Market Matters Blog

OMAHA (DTN) -- Of the 40 locations DTN contacted that showed offers for domestic distillers dried grains (DDG) for the week ended June 25, posted offers were mostly lower, averaging $130 per ton, down $4 versus the prior week.

DDG prices have fallen since the beginning of the month as demand continues to be flat both domestically and in the export sector. The cash corn price has been falling, also adding pressure to DDG and other corn feed byproducts. The DTN National Corn Index is down 12 cents versus one week ago.

Wednesday's Energy Information Administration ethanol report noted that ethanol inventory in the United States was drawn down for the ninth consecutive week to a 6 1/2-month low during the week ended June 19. The draw came with ongoing improvement in blending activity with EIA reporting a 5.3% increase in net refiner and blender ethanol inputs to a 12-week high. Ethanol plant production ramped up more than blending activity, up 6.2% while down 16.7% against a year ago. Four-week average output is down 22.3% against a year ago and 7.5% above blending demand through last week. Wednesday's production number is now approximately 85% of where we were in February, a good sign that ethanol plants continue to recover.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended June 25 was 114.73%. The value of DDG relative to soybean meal was 45.53%. The cost per unit of protein for DDG was $4.81, compared to the cost per unit of protein for soybean meal at $6.01.

NOTE: All prices listed below can change at any time and are subject to confirmation from seller.

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

Follow her on Twitter @MaryCKenn

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