Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 35 locations reporting for the week ended Nov. 17 was $234 per ton, down $2 on average versus one week ago. The drop in cash corn prices again added to the pressure on DDG prices over the week, along with the availability of more product to sell after production increased the six weeks prior to last week's drop.

The Energy Information Administration (EIA) Wednesday showed plant production dropped for the first time in seven weeks and demand ticked higher. EIA reported ethanol production in the U.S. tumbled 40,000 barrels per day (bpd) or 3.8% to a five-week low 1.011 million bpd last week, 4.6% below the same week a year ago. Four-week average production at 1.034 million bpd was 44,000 bpd lower than the corresponding four weeks in 2021. Midwest ethanol production was also lower for the first time in seven weeks, falling 38,000 bpd or 3.8% to 954,000 bpd, a five-week low.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 17 was 0.98%. The value of DDG relative to soybean meal was 57.68%, and the cost per unit of protein for DDG was $8.67 compared to the cost per unit of protein for soybean meal at $8.54.

In its weekly DDGS export update, the U.S. Grains Council said: "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."

There will be no price update the week of Thanksgiving.

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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