With lackluster demand from all sectors, prices of dried distillers grains reached the lowest point since December 2014 this week.
The DTN weekly DDG spot price average fell another $3 per ton in the past week, from $131 per ton last week to $128 per ton this week. This is the seventh consecutive week the average has dropped, from $148 per ton in mid-July to this week's average of $128 per ton. This also marks the lowest point the average has reached since the first week of December 2014.
Of the 36 Midwestern locations DTN collects spot prices from, 26 locations reported their spot prices fell between $2 and $10 per ton since last week, though most decreases were $5 per ton. Spot prices at 10 locations remained unchanged since last week, and no locations had price increases in the past week.
Merchandisers told DTN that is the same factors playing into the continuing downward trend this week: lack of interest from overseas buyers and local buyers not stepping in and boosting DDG in livestock rations sufficiently to boost prices. That lackluster demand continued to push values lower this week.
The value of DDG relative to corn took a plunge this week from about 105% last week to about 99% this week, as corn prices rose and DDG prices continued downward. This was the first time the value of DDG relative to corn dropped below 100% since mid-July. The value of DDG relative to soybean meal remained steady at about 41%.
The cost per unit of protein for DDG was about $5.12 this week, compared to the cost per unit of protein for soybean meal at $6.56.
Cheryl Anderson can be reached at Cheryl.firstname.lastname@example.org.
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