Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended May 18 was $228 per ton, down $14 from one week ago. Prices have been on a steady decline as the cash price of corn has been dropping. The DTN National Corn Index is down 40 cents versus one week ago. An uptick in ethanol plant production also weighed on prices as supplies have increased.

The Energy Information Administration (EIA) at midweek showed overall ethanol production in the U.S. averaged 987,000 barrels per day (bpd), up 22,000 bpd through May 12 -- 4,000 bpd or 0.4% lower than in the same week last year. The four-week average output at 974,000 bpd was 4,000 bpd below the same four weeks in 2022. Midwest ethanol production averaged 932,000 bpd, up 20,000 bpd week on week and 1,000 bpd or 0.1% higher than in the same week last year. Four-week average output at 921,000 bpd was 1,000 bpd below 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 18 was 1.15%. The value of DDG relative to soybean meal was 55.06 and the cost per unit of protein for DDG was $8.44 compared to the cost per unit of protein for soybean meal at $8.72.

In its weekly DDGS export update, the U.S. Grains Council said: "Barge CIF NOLA values dropped this week with offers for June falling $12 metric ton (mt) to $275 while FOB NOLA offers are down $10 for June at $284 mt. Offers for 40-foot containers to southeast Asia are down $6 mt at $366 with weaker freight prices and DDGS values keeping product competitive on international markets."

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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