Dried distillers grains prices were steady in a week characterized by slow buying and some supply tightness.
The DTN weekly DDG spot price average was unchanged compared to last week at $130 per ton. After hovering between $125 and $127 since mid-December, this is the highest point the average has reached since the first week of September 2015.
Of the 36 Midwestern locations DTN collects spot prices from, 28 locations reported unchanged spot prices. Six locations reported prices $1 and $6 per ton lower and only two locations reported increases of $5 each.
Merchandisers told DTN the DDG market has been quiet, describing action as "very stale."
Some supply tightness was noted this week, as some plants have slowed production in light of poor profit margins. Some locations sold out, at least in the nearby through February. Inventory tightness seems to be localized.
Some merchandisers said prices will remain static until something in the market changes, i.e. plants ramp up production or more demand surfaces.
Merchandisers reported exports were a little slow, but product was still moving out.
The value of DDG relative to corn fell slightly this week, from 100% to 99%, while the value of DDG relative to soybean meal remained steady at 49%.
The cost per unit of protein for DDG was $5.20, compared to the cost per unit of protein for soybean meal at $5.63.
Cheryl Anderson can be reached at Cheryl.firstname.lastname@example.org.
© Copyright 2016 DTN/The Progressive Farmer. All rights reserved.
More Recommended for You
Growers are old hands at spotting soybean aphids and...
Signs indicate that the farm equipment industry finally has...