Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 35 locations reporting for the week ended Jan. 5 was $271 per ton, up $2 on average from one week ago. Prices were mixed, but overall, ended up slightly higher on average.

DDG prices continue higher as plant production was lower again last week, but once plants pick up the pace, that will likely affect prices. There is still good demand from feeders, but the recent winter storms have been rough on truck and rail logistics. Strength in the soybean meal cash price also is giving support to DDG prices.

The Energy Information Administration (EIA) reported domestic ethanol production in the final week of December sank to the lowest level since just after Winter Storm Uri in February 2021. EIA reported domestic ethanol production tumbled 119,000 barrels per day (bpd) to average 844,000 million bpd last week, the lowest level since the week ended Feb. 19, 2021, while 19.5% lower than a year ago. Over the four weeks ended Dec. 30, production averaged 974,000 bpd, down 87,000 bpd from the same four weeks in 2021.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 5 was 1.16%. The value of DDG relative to soybean meal was 55.45%, and the cost per unit of protein for DDG was $10.04 compared to the cost per unit of protein for soybean meal at $10.29.

In its weekly DDGS export update, the U.S. Grains Council said: "On the export market, Barge CIF NOLA prices are higher for a fourth week with spot offers up $1 to $2 metric ton (mt). FOB NOLA offers are $3 to $4/mt also higher and are showing a slightly inverted market. U.S. rail rates are $4 to $6/mt lower this week as logistics are still untangling from the past few weeks. Finally, offers for 40-foot containers destined for Southeast Asia are steady this week at $423 for February shipment."

The USDA reported this week that U.S. exports of DDGS totaled 728,409 mt in November, down from 798,100 mt in October and down 28% from a year ago. Mexico was the top destination in November, taking 28% of U.S. exports and was followed by South Korea and Vietnam. In the first 11 months of 2022, U.S. exports of DDGS were down 5% 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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