Market Matters Blog

OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended July 21 was $225 per ton, up $2 on average versus one week ago. Prices were mixed but higher on average as demand has picked up some and, while production levels were up last week, some plants have tight DDG supplies.

The Energy Information Administration (EIA) said Wednesday that production at domestic ethanol plants moved off an eight-week low with the first increase in five weeks. EIA showed total output up 29,000 barrels per day (bpd) to 1.034 million bpd, 0.6% higher than the same week in 2021. Ethanol plant output averaged 1.033 million bpd during the four weeks ended July 15, down 15,000 bpd versus 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 21 was 1.09%. The value of DDG relative to soybean meal was 51.80%, and the cost per unit of protein for DDG was $8.33, compared to the cost per unit of protein for soybean meal at $9.15. DTN's estimates moved to utilizing September futures since July has gone off the board.

In its weekly DDGS export update, the U.S. Grains Council said: "On the export market, barge availability is increasing, which pushed barge CIF NOLA offers lower this week with spot positions trading below $300 metric ton (mt). FOB Gulf offers are down $20/mt for August but are finding better strength in September and further deferred positions. U.S. rail rates are steady/$2 higher this week as the domestic market tightens. Offers for 40-foot containers to Southeast Asia are down $1 to $2/mt this week as freight values continue to slip lower."

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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