Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 35 locations reporting for the week ended Feb. 2 was $271 per ton, down $2 on average from one week ago. Prices were mixed again this week but lower on average. Overall, the market feels better than it did last week and much of that comes from the support due to the continued rise in soymeal prices. DDG remains a good value for feeders in comparison to soymeal and other feed products.

The Energy Information Administration (EIA) at midweek showed a fourth consecutive increase in domestic ethanol production, up 16,000 barrels per day (bpd) or 1.6% to 1.028 million bpd, 1.2% below a year ago. Output in the Midwest PADD 2 rose 19,000 bpd or 2% to 982,000 bpd, a seven-week high while 0.1% more than the same week in 2022.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Feb. 2 was 1.12%. The value of DDG relative to soybean meal was 55.10%, and the cost per unit of protein for DDG was $10.04 compared to the cost per unit of protein for soybean meal at $10.35.

In its weekly DDGS export update, the U.S. Grains Council said: "Brokers have also cited a "thin pipeline" as responsible for increases in DDGS values on the export market. Barge CIF NOLA offers are up $7-10/MT this week while FOB NOLA offers are up $9 for spot positions and up $1-7/MT for March/April. Offers for 40-foot containers to Southeast Asia are up $20/MT for February/March positions at $414 this week."

USGC added, "The USDA's monthly Grain Crushings report helped explain some of the recent pricing strength in DDGS markets, as production fell sharply in December 2022. The industry produced 1.523 MMT (1.68 million short tons) in December, which was down 5.6 percent from November and down 19 percent year-over-year. Part of the production decline is explained by bitterly cold temperatures and icy conditions that hampered operations towards the end of the month. The weather also contributed to an 11.4-percent year-over-year decline in corn gluten feed production as well as a 6.9 percent decrease in corn gluten meal output."

NOTE: All prices listed below can change at any time and are subject to confirmation from the seller.

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Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

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