Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Nov. 30 was steady at $213 per ton on average versus one week ago. DDG prices came under pressure from the weaker cash corn price and losses in soybean meal. The U.S. Grains Council also noted "western rail demand has cooled a bit with end users having booked near-term needs."

The Energy Information Administration on Wednesday said overall ethanol production in the United States averaged 1.011 million barrels per day (bpd) in the week ended Nov. 24, down 12,000 bpd week-on-week and 7,000 bpd, or 0.7%, lower than in the same week last year. Four-week average output at 1.031 million bpd was 1,000 bpd above the same four weeks in 2022. Midwest ethanol production averaged 950,000 bpd, down 13,000 bpd week-on-week and 12,000 bpd, or 1.3%, lower than in the same week last year. Four-week average output at 972,000 bpd was 0,000 bpd below the same four weeks in 2022.

USGC comments on price ratios: "The DDGS/cash corn ratio is firmer at 1.35 and above the three-year average of 1.03. The DDGS/KC soymeal ratio rose to 0.42 this week and remains below the three-year average of 0.51."

In their weekly DDGS export update, the U.S. Grains Council said, "Barge CIF NOLA offers are down $4 metric ton (mt) for December and down $6 for January and February this week as barge freight rates follow their seasonal declines. FOB NOLA offers are $9-10 mt lower for December and January shipment with a wide range of offers received for this week's survey. Prices for containerized DDGS to Southeast Asia are down $2 mt this week at $329 for December/January shipment as higher ocean freight rates offset lower product values on the river system."

Note: All prices subject to change/confirmation.

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

Follow her on X, formerly known as Twitter, @MaryCKenn

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