Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 35 locations reporting for the week ended March 9 was $262 per ton, down $2 from one week ago. Prices were steady to mixed but lower on average. The cheaper cash corn price has put pressure on DDG prices and other competing feedstuffs. The DTN National Corn Index is down 19 cents versus one week ago.

The Energy Information Administration (EIA) at midweek showed domestic ethanol production gained 7,000 barrels per day (bpd) to 1.010 million bpd last week, 1.6% below the same week in 2022. In the Midwest PADD 2, ethanol production rose 6,000 bpd or 0.6% to 964,000 bpd, 1.3% below a year ago.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended March 9 was 1.19%. The value of DDG relative to soybean meal was 52.52%, and the cost per unit of protein for DDG was $9.70 compared to the cost per unit of protein for soybean meal at $10.50.

In its weekly DDGS export update, the U.S. Grains Council said: "Barge CIF NOLA offers are steady for spot positions but $3 to $4 metric ton (mt) lower for April and May despite increases in barge freight. FOB NOLA offers are also steady for March/first-half April shipment but $1 to $2 lower for last-half April and May. This week's offers for 40-foot containers to Southeast Asia are steady/$1 lower and average $392 for March/April shipment."

From information gathered in the monthly U.S. Census Bureau goods and services report at midweek, USDA said U.S. exports of DDGS totaled 770,344 mt in January, down from 887,433 mt in December and down 29% from a year ago. Mexico was the top destination in January, taking 20% of U.S. exports and was followed by South Korea and Indonesia.

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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