Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended July 6 was $202 per ton, down $1 on average from one week ago. With plant production still on the rise, there is plenty of DDG/DDGS around in a tight-demand domestic and export market.

The Energy Information Administration (EIA) at midweek showed overall ethanol production in the United States averaged 1.06 million barrels per day (bpd) as of June 30, up 8,000 bpd week-on-week and 16,000 bpd, or 1.5% higher, than the same week last year. Four-week average output at 1.045 million bpd was 8,000 bpd below the same four weeks in 2022.Midwest ethanol production averaged 999,000 bpd, up 8,000 bpd week-on-week and 13,000 bpd, or 1.3% higher than in the same week last year. Four-week average output at 985,000 bpd was 8,000 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 July 6 was 1%. The value of DDG relative to soybean meal was 48.6 and the cost per unit of protein for DDG was $7.48 compared to the cost per unit of protein for soybean meal at $8.75. (FYI: Table below and values still based on July futures.)

In its weekly DDGS export update, the U.S. Grains Council said: "Barge CIF NOLA DDGS offers are $14 metric ton (mt) lower this week as barge freight weakens and offers for product destined for the river system continue to ease lower. FOB NOLA offers are $6 to $9 mt lower while U.S. rail rates are steady to $2 lower. Offers for 40-foot containers to Southeast Asia are down $5 mt at $310 for July shipment and are down just $2 to $3 mt for August-October positions."

USDA reported this week that U.S. exports of DDGS totaled 958,385 mt in May, up from 777,617 mt in April, but down 1% from a year ago. Mexico was the top destination in May, taking 17% of U.S. exports and was followed by Turkey and South Korea. In the first five months of 2023, exports of DDGS were down 11% from a year ago.

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

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

Follow her on Twitter @MaryCKenn

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