Ethanol Blog

Ample Product Aids DDG Prices in Continuing Downward Trend

By Cheryl Anderson , DTN Staff Reporter

A combination of excess product and lackluster demand pushed prices of dried distillers grains on a continued downward fall in the past week.

The DTN weekly spot price average fell another $4 per ton in the past week, from $235 per ton to $231. This marks the seventh consecutive week that prices have decreased and the lowest level the average has reached since the last week of June 2012.

Of the 29 Midwestern locations DTN collects prices from, 26 locations reported their prices increased $5 to $10 per ton in the past week. Only three locations said their prices remained the same as last week. No price increases were reported.

Merchandisers told DTN that with such good profit margins, many ethanol plants are operating at full capacity, creating ample supplies of DDG. Scheduled spring maintenance shut-downs will also be finished in the next couple weeks, which will add even more product to the market. Domestic demand has been sluggish lately, while overseas buyers seem hesitant amidst concerns about bird flu.

The value of DDG relative to corn fell from 102.09% last week to 100.24% this week. The value of DDG relative to soybean meal rose only slightly, from 57.18% last week to 55.76% this week.

The cost per unit of protein for DDG was $9.24 this week, compared to the cost per unit of protein for soybean meal at $8.72.

Cheryl Anderson can be reached at



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