The dried distillers grain market has remained fairly quiet in the past week amidst some a bit of lackluster purchasing and slightly tighter supplies.
The DTN weekly DDG spot price average remained unchanged in the past week at $225 per ton. The average has hovered between $225 and $225 since mid-April, and since last week has reached the lowest level since early May.
Of the 30 Midwestern locations DTN collects prices from, five locations reported their prices increased between $2 and $10 per ton in the past week and eight locations said their prices increased between $2 and $5 per ton in the past week. Prices at 17 locations remained unchanged in the past week.
Merchandisers told DTN this week that tight supplies and concerns over corn availability until new crop corn comes were running eastern markets. Buyers are hesitant as prices continue their slight decline, with more price decreases possible as the market switches to new crop prices.
The value of DDG relative to corn this week was at about 129.23%, however, that is a distorted number. The abrupt shift in the DDG to corn ratio after July 12 is due to the transition from July corn futures to the lower-priced September corn contract. The value of DDG relative to soybean meal was at about 54.44%.
The cost per unit of protein for DDG was $9.00 this week, compared to the cost per unit of protein for soybean meal at $8.70.
Cheryl Anderson can be reached at Cheryl.firstname.lastname@example.org.
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