Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Aug. 8 was down $1 on average at $142 per ton versus one week ago. DDG prices overall were mixed and merchandisers noted that demand has been slow. DDG also came under pressure from the weaker cash soybean meal prices this past week. The DTN National Average Corn Index was down 3 cents versus one week ago.

The U.S. Energy Information Administration reported overall ethanol production in the United States averaged 1.067 million barrels per day (bpd) in the week ended Aug. 2, down 42,000 bpd week-on-week and 44,000 bpd, or 4.1%, higher than in the same week last year. Four-week average output at 1.094 million bpd was 30,000 bpd above the same four weeks last year. Midwest ethanol production averaged 1.008 million bpd, down 37,000 bpd week-on-week and 43,000 bpd, or 4.3%, higher than in the same week last year. Four-week average output at 1.033 million bpd was 34,000 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 Aug. 8 was 1.05%. The value of DDG relative to soybean meal was 42.35 and the cost per unit of protein for DDG was $5.26 compared to the cost per unit of protein for soybean meal at $7.06.

U.S. Grains Council in its weekly DDGS export market prices report showed as of August 7, CIF NOLA barge price was at $177 per metric ton, unchanged versus one week ago and FOB vessel Gulf price was at $185, up $4; rail delivered PNW was unchanged at $218, and rail delivered to California was unchanged at $223 per metric ton.

Note: All prices subject to change/confirmation.

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

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