Market Matters Blog

The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended Nov. 10 was $237 per ton, down $5 on average versus one week ago. The drop in cash corn prices added to some of the pressure on DDG prices over the week. The DTN National Corn Index was down 23 cents versus one week ago.

The Energy Information Administration (EIA) Wednesday showed plant production held higher for a sixth consecutive week and blender inputs, a measure of demand, continued lower through the week ending Nov. 4. EIA reported ethanol production in the U.S. increased 11,000 bpd or 1.1% to 1.051 million bpd last week, the highest level since the last week of June and 1.2% higher than the same week a year ago. Four-week average production at 1.035 million bpd was 52,000 bpd lower than the corresponding four weeks last year. Midwest ethanol production also increased a sixth straight week, up 11,000 bpd or 1.1% to 992,000 bpd, the highest since the week ended June 17.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 10 was 1.02%. The value of DDG relative to soybean meal was 58.65%, and the cost per unit of protein for DDG was $8.78 compared to the cost per unit of protein for soybean meal at $8.51.

In its weekly DDGS export update, the U.S. Grains Council said: "Lower transportation costs are a factor in cheaper prices the past week. Some increase in Mississippi water flows helped lower barge CIF NOLA rates. Plus, there is the benefit of slightly lower U.S. rail rates. Quotes for DDGS delivered Japan were also slightly lower but there were increases in the offers made going into Southeast Asia."

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

(c) Copyright 2022 DTN, LLC. All rights reserved.