Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended April 18 was down $2 on average versus one week ago at $176 per ton. DDG prices were mixed again but lower on average, as spot demand remains flat according to sellers. The DTN National Average Corn Index was unchanged versus one week ago. We have seen a surge in basis at many ethanol plants for quick shipment as farmers with old crop have been slow to sell.

The Energy Information Administration on Wednesday reported overall ethanol production in the United States averaged 983,000 barrels per day (bpd) in the week ended April 12, down 73,000 bpd week-on-week and 41,000 bpd, or 4.2%, lower than in the same week last year. Four-week average output at 1.042 million bpd was 45,000 bpd above the same four weeks last year. Midwest ethanol production averaged 924,000 bpd, down 84,000 bpd week-on-week and 50,000 bpd, or 5.4%, lower than in the same week last year. Four-week average output at 991,000 bpd was 41,000 bpd above the same four weeks last year.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended April 18 was 1.15%. The value of DDG relative to soybean meal was 52.07 and the cost per unit of protein for DDG was $6.52 compared to the cost per unit of protein for soybean meal at $7.12.

According to U.S. Grains Council weekly DDGS export prices, barge CIF NOLA was up $3 versus last week, FOB Vessel Gulf was unchanged, rail delivered PNW was unchanged and 40-foot containers to South Korea were unchanged versus one week ago.

*All prices are subject to confirmation.

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

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