Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended Oct. 6 was $256 per ton, down $6 on average versus one week ago. As production levels increased at plants last week, DDG supplies were more readily available, adding to the lower prices. USGC noted that traders reported due to the historically low water levels in the Mississippi River system stopping barge movements, ethanol plants near the river have been procuring corn at a discount.

The Energy Information Administration (EIA) Wednesday noted the first increase in domestic ethanol production in four weeks, up 4% in the last week of September while blender inputs declined after a surge the prior week. Ethanol production in the United States moved off a better than 19-month low, rising 34,000 barrels per day (bpd) to 889,000 bpd as of Sept. 30, down 9.1% from this time last year. Midwest ethanol production also posted the first gain in four weeks, up 41,000 bpd or 5.1% to 840,000 bpd.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Oct. 6 was 1.06%. The value of DDG relative to soybean meal was 64.42%, and the cost per unit of protein for DDG was $9.48 compared to the cost per unit of protein for soybean meal at $8.37.

In its weekly DDGS export update, the U.S. Grains Council said: "On the export market, Barge CIF NOLA prices are sharply higher for October and November positions, with the average offer rising $17 metric ton (mt) to $353. FOB Gulf offers are similarly higher, rising $13/mt for spot positions, while deferred offers are up just $1 to $5/mt. U.S. rail rates are $15/mt lower as the threat of a railroad worker strike seems to be mitigated for now. Finally, containerized DDGS markets are mixed this week with spot offers up $2/mt while deferred positions are steady/$2 lower. Offers for 40-foot containers to Southeast Asia are averaging $404/mt this week."

USDA reported Oct. 5 that U.S. exports of DDGS totaled 981,020 mt in August, down from 1,059,300 mt in July and down 21% from a year ago. Mexico was the top destination in August, taking 20% of U.S. exports, followed by Vietnam and South Korea. In the first eight months of 2022, U.S. exports of DDGS were up slightly 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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