Market Matters Blog

OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Oct. 7 was $194 per ton, down $1 on average from one week ago. DDG prices were mixed again this week, while the cash corn price hasn't changed much from one week ago. The DTN National Corn Index is 3 cents lower from one week ago, while average basis was unchanged.

Wednesday's Energy Information Administration (EIA) report showed domestic ethanol inventories were drawn down during the week ended Oct. 1 even as production rose for the first time in three weeks, up 7% to an eight-week high, according to the latest Energy Information Administration report released Wednesday. Overall, production increased 64,000 barrels per day (bpd) to 978,000 bpd, the highest level since the first week of August and 6% more than a year earlier. Midwest PADD 2 plant production jumped 71,000 bpd or 8.2% to 937,000 bpd, the highest level since the final week of July.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Oct. 7 was 101.72%. The value of DDG relative to soybean meal was 60.85% and the cost per unit of protein for DDG was $7.19, compared to the cost per unit of protein for soybean meal at $6.71.

In its weekly DDGS export price update, the U.S. Grains Council said: "On the export market, DDGS values are mixed with barge CIF NOLA rates are down $6 per metric ton (mt) for the fourth quarter 2021 shipment and down $2 for first quarter of 2022. FOB NOLA offers are up $1 to $2/mt for November – January shipment while U.S. rail rates are up $9 to $10/mt this week. Brokers continue to report that the international market is seeing fewer offers for containerized DDGS due to high freight costs. Both buyers and sellers are eyeing the huge inverse in the freight market and proceeding somewhat cautiously. Some trade is still getting done, however, and prices for 40-foot containers to Southeast Asia are up $6/mt at $354/mt this week."

The U.S. Census Bureau said Tuesday that U.S. exports of DDGS totaled 1,243,698 mt in August, up from 1,064,550 mt in July and up 21% from a year ago. Mexico was the top destination in August, taking 16% of U.S. exports and was followed by Vietnam and Turkey. In the first eight months of 2021, U.S. exports of DDGS are up 10% from a year ago.

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

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

Follow her on Twitter @MaryCKenn

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