Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 35 locations reporting for the week ended March 23 was $257 per ton, down $4 from one week ago. Prices were mixed and mostly lower, with the average lower as well. The falling soybean meal prices pressured DDG this week as the cash corn price was mostly unchanged since last week.

The Energy Information Administration (EIA) at midweek showed EIA reports overall ethanol production in the United States dropped 17,000 barrels per day (bpd) to 997,000 bpd, the lowest level since the first week of January and only the second time this year below 1 million bpd. Versus a year ago, output was down 4.3% while data show four-week average output at 1.006 million bpd was 17,000 bpd lower than the same four weeks in 2022. Midwest PADD 2 ethanol production fell 12,000 bpd in the week to 954,000 bpd, 3.4% 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 23 was 1.14%. The value of DDG relative to soybean meal was 58.64%, and the cost per unit of protein for DDG was $9.52 compared to the cost per unit of protein for soybean meal at $9.23.

In its weekly DDGS export update, the U.S. Grains Council said: "Barge CIF NOLA offers are steady for spot positions and $2 metric ton (mt) lower for May and June as strong barge freight offset the impacts of lower truck and rail offers. FOB NOLA offers are $7 to $10 mt lower for Q2 positions and average $339 mt for April. This week's offers for 40-foot containers to Southeast Asia are $2 to $3 mt higher and average $397 for Q2 shipment."

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 2023 DTN, LLC. All rights reserved.