Ethanol Blog

DDG Prices Rise Slightly Amid Quiet Week

Cheryl Anderson
By  Cheryl Anderson , DTN Staff Reporter

A quiet week in trade resulted in a slight rise in prices of dried distillers grains, despite warmer weather and improved logistics and reports that some trade from China is resuming.

The DTN weekly spot price average rose $5 per ton from $171 per ton last week to $176 per ton this week. This is the 12th consecutive week that the average has continued on an upward trend, rising $79 per ton since mid-October. This also marks the highest point the average has reached since mid-June.

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Of the 36 Midwestern locations DTN collects spot prices from, 17 locations reported their prices had increased between $2 and $20 per ton in the past week, though most increases were in the range of $5-to-$10 per ton. Prices at nine locations remained unchanged since last week, and only two price decreases were reported at $5 per ton each. Prices from eight locations were not available, so no change could be calculated.

Merchandisers told DTN this week that trade was steady, held up by CIF market demand. Some plants that have been running at full speed have been trying to get product moved now that warmer weather has been more favorable for logistics. Trade with China still seems to be somewhat undefined, as one merchandiser reported that a lot of product has been flowing downriver destined for China. However, another seller reported seeing little interest yet from China.

The value of DDG relative to corn bounced up to nearly 130% this week from 121% last week. This is the highest that value has been since mid-May 2014. The value of DDG relative to soybean meal also rose from about 47% last week to nearly 54% this week.

The cost per unit of protein for DDG this week was about $7.04, rising slightly from about $6.84 last week. The cost per unit of protein for soybean meal actually fell somewhat in the past week, from about $7.61 last week to about $6.88 this week.

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

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