Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Aug. 1 was down $1 on average at $143 per ton versus one week ago. DDG prices overall were mostly steady but given the ramped-up plant production and the extreme heat over much of the U.S., DDG prices may come under pressure in the coming week. The DTN National Average Corn Index was down 12 cents versus one week ago.

The U.S. Energy Information Administration reported overall ethanol production in the United States averaged 1.109 million barrels per day (bpd) in the week ended July 26, up 14,000 bpd week-on-week and 42,000 bpd, or 3.8%, higher than in the same week last year. Four-week average output at 1.091 million bpd was 25,000 bpd above the same four weeks last year. Midwest ethanol production averaged 1.045 million bpd, up 10,000 bpd week-on-week and 40,000 bpd, or 3.8%, higher than in the same week last year. Four-week average output at 1.032 million bpd was 31,000 bpd above the same four weeks last year. Last week's number exceeded the all-time record of 1.108 million barrels a day set in December 2017.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended August 1 was 1.05%. The value of DDG relative to soybean meal was 40.18 and the cost per unit of protein for DDG was $5.3 compared to the cost per unit of protein for soybean meal at $7.49.

U.S. Grains Council in its weekly DDGS export market prices report showed July 24 August CIF NOLA barge price was at $177 per metric ton, down $5 from one week ago and FOB vessel Gulf price was at $181, down $5; rail delivered PNW was up $2 at $218, and rail delivered to California was up $6 at $223 per metric ton.

Note: All prices subject to change/confirmation.

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

Follow her on the social platform X @MaryCKenn

(c) Copyright 2024 DTN, LLC. All rights reserved.