Market Matters Blog

OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended July 7 was $220 per ton, down $4 on average versus one week ago. Prices continue to move, still under pressure from the lower corn price and weak spot demand. The DTN National Corn Index is down 26 cents versus one week ago.

EIA said Wednesday that production at domestic ethanol plants continued lower a third week, down 7,000 barrels per day (bpd) in the week ended July 1 to 1.044 million bpd. Production last week was 2.2% lower than the same week in 2021. Plant output averaged 1.053 million bpd during the four weeks ended July 1, 4,000 bpd above the same four weeks a year earlier.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended July 7 was 82.46%. The value of DDG relative to soybean meal was 46.81 %, and the cost per unit of protein for DDG was $8.15, compared to the cost per unit of protein for soybean meal at $9.89.

In its weekly DDGS export update, the U.S. Grains Council said: "Barge CIF NOLA offers $15 metric ton (mt) lower, on average, this week while FOB Gulf offers are down $10 to $14/mt, depending on the shipment period. Offers for containerized DDGS to southeast Asia remain spotty but are generally down $4 to $7/mt this week, averaging $408/mt."

USDA reported on Thursday that U.S. exports of DDGS totaled 966,108 mt in May, up from 813,749 mt in April, but down 7% from a year ago. Mexico was the top destination in May, taking 24% of U.S. exports and was followed by South Korea and Vietnam. In the first five months of 2022, U.S. exports of DDGS were up 4%.

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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