Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 35 locations reporting for the week ended May 4 was $248 per ton, down $6 from one week ago. Prices were mixed but lower again on average due to the lower soybean meal and other protein feed products. End users are still buying as the cheaper prices are enticing.

The Energy Information Administration (EIA) at midweek showed overall ethanol production in the United States averaged 922,000 barrels per day (bpd), up 6,000 bpd week-on-week through April 28 and 7,000 bpd or 0.8% higher than in the same week last year. The four-week average output at 931,000 bpd was 5,000 bpd above the same four weeks in 2022. Midwest ethanol production averaged 911,000 bpd, up 12,000 bpd week-on-week and 16,000 bpd, or 1.8% higher, than the same week last year. The four-week average output at 896,000 bpd was 7,000 bpd above the same four weeks in 2022.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended May 4 was 1.07%. The value of DDG relative to soybean meal was 58.04 and the cost per unit of protein for DDG was $9.19 compared to the cost per unit of protein for soybean meal at $9. (Futures used in the table are still based the May).

In its weekly DDGS export update, the U.S. Grains Council said: "Barge rates continue to work their way lower amid the river navigation issues and barge CIF NOLA DDGS prices are down $30 metric ton (mt) for spot shipment and down $28 mt for June/July. FOB Gulf offers are similarly lower at $289 mt, a $25 decline from last week. Offers for 40-foot containers to southeast Asia are down $15 mt compared to last week at $373 for May/June shipment."

Lock and Dam closures update on the Mississippi River as of May 4: Lock 11 open, Lock 12 through 18 closed, Lock 19 open, Lock 20 closed, Lock 21, 22 open. NWS flood forecast map: https://www.weather.gov/…

The U.S. Census Bureau said Thursday that U.S. exports of DDGS totaled 898,086 mt in March, up from 764,344 mt in February, but down 3% from a year ago. Mexico was the top destination in March, taking 23% of U.S. exports and was followed by South Korea and Turkey. In the first three months of 2023, exports of DDGS were down 16% 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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