Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Jan. 25 was mixed but is unchanged on average at $195 per ton versus one week ago. DDG prices were steady on average, and some merchandisers noted that supplies are tight given the slowdown in plant production the past few weeks.

The Energy Information Administration on Wednesday reported overall ethanol production in the United States averaged 818,000 barrels per day (bpd) in the week ended Jan. 19, down 236,000 bpd week-on-week and 194,000 bpd, or 23.7%, lower than in the same week last year. The four-week average output at 996,000 bpd was 44,000 bpd above the same four weeks in 2022. Midwest ethanol production averaged 766,000 bpd, down 235,000 bpd week-on-week and 197,000 bpd, or 25.7%, lower than in the same week last year. The four-week average output at 942,000 bpd was 39,000 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 Jan. 25 was 1.21%. The value of DDG relative to soybean meal was 54.44% and the cost per unit of protein for DDG was $7.22 compared to the cost per unit of protein for soybean meal at $7.54.

In its weekly DDGS report, U.S. Grains Council noted: "DDGS export prices were stable compared to last week. Small price movements below $3 per metric ton occurred for Barge CIF New Orleans and FOB Vessel Gulf quotes, but otherwise, prices were consistent week over week."

While river levels in the Lower Mississippi are on the rise thanks to recent precipitation, the buildup of ice on the Illinois River needs to work its way downriver into the LMR and is causing some problems. American Commercial Barge Line noted: "There have been extended delays due to shutout fog throughout the Lower Miss and Gulf region. Additionally, fleets continue to remain down when the fog lifts due to heavy rainfall the past few days and across the Lower Miss region. A flood watch is in effect throughout the region and localized flooding is expected."

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Note: All prices subject to change/confirmation.

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

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

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