Ethanol Blog

Prices of dried distillers grain rose another $9 per ton during the holidays, continuing on an upward trend that began in mid-October. Recent increases are due largely to China's recent approval of the MIR 162 biotech trait, according to industry sources.

The DTN weekly spot price average increased another $9 in the past two weeks, rising from $164 the week before Christmas to today's average of $173. This marks the 10th week in a row that the average has increased, rising a whopping $76 a ton since it reached a low of $97 in mid-October. In fact, the average rose a total of $49 since the first week of December.

Of the 36 Midwestern locations DTN collects spot prices from, 20 reported that their prices had increased between $3 and $20 per ton in the past two weeks. Prices remained unchanged at 14 locations, and prices at two locations were unavailable. No price decreases were reported.

Merchandisers told DTN this week that China's resurgence as a major importer was the driving force behind the continuing DDG price increases. Prices of competing protein sources were also holding DDG prices higher, especially with soybean meal basis remaining fairly high. Several sellers reported some tightness in supplies in certain locations in the Midwest, especially for January.

The value of DDG relative to corn this week was at about 115%, rising from about 110% two weeks ago. The value of DDG relative to soybean meal was at about 45%, also rising from about 43% two weeks ago.

The cost per unit of protein for DDG was at about $6.52 this week, compared to the cost per unit of protein for soybean meal at $7.68.

Cheryl Anderson can be reached at Cheryl.anderson@dtn.com.

ES)

© Copyright 2015 DTN/The Progressive Farmer. All rights reserved.