Prices of dried distillers grains rose $4 per ton last week despite merchandisers' reports of a quiet market.
The DTN weekly DDG spot price average rose from $140 to $144 per ton last week. This is the third consecutive week that the average has increased, from $131 per ton the last week of June to last week's average of $144 per ton. This is the highest level the average has reached since mid-June.
Of the 36 Midwestern locations DTN collects spot prices from, 20 locations reported their spot prices had increased between $1 and $10 per ton during the week. Prices at 11 locations remained unchanged since the prior week, while only five locations reported prices decreases, all of $5 per ton.
Merchandisers told DTN that the market had been very quiet, with little new demand. Only a slight down trend was evident last week, though the $4 increase in the DTN spot price average may have been triggered by increases in corn and meal prices.
A lack in export demand, as well as a lack of any new domestic demand, helped keep prices fairly stable.
There were some reports of some "tire kickers," who did not appear ready to buy, but instead seemed to be testing the waters to find out what supplies/prices are like. Some believe that the lack of purchasing may be due to buyers waiting for the August crop report to see what effect the continuing rainy weather will have on the corn crop.
Cheryl Anderson can be reached at Cheryl.email@example.com.
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