The DTN weekly DDG spot price average fell just $1 per ton in the past two weeks, from $130 per ton two weeks ago, to $129 this week. This is the first movement in the average in six weeks, after remaining steady at $130 per ton since late January. The average has hovered between $126 and $130 since the last week of December 2015.
Of the 36 Midwestern locations DTN collects spot prices from, 27 locations reported their DDG spot prices remained unchanged in the past two weeks. Prices at nine locations decreased between $1 and $5 per ton since two weeks ago. No prices increases were reported.
Merchandisers told DTN this week that although prices were slightly weaker, the market has been quiet with little price movement.
One reason for the steady lower values may be that currently there is a surplus of grain around the world. There are ample supplies of corn, soybeans and other kinds of agricultural feed that all compete with DDG for places in livestock rations. Some Southern American countries, especially Brazil, are now looking at their second crop of corn and soybeans that appear to be looking very good.
Export prices had a slight bump a couple weeks ago, but have been steady and flat since then. Some buyers, especially those in China, may wait for the outcome of China's DDG anti-dumping/countervailing duties investigation against the U.S., fearing additional duties could be instituted.
Rail markets are also steady with little movement.
The value of DDG relative to corn this week rose slightly, from about 100% two weeks ago to about 102% this week. The value of DDG relative to soybean meal remained steady in the past two weeks at about 49%.
The cost per unit of protein for DDG was at about $5.16 this week, down slightly from %5.20 two weeks ago. The cost per unit of protein for soybean meal also dropped during that same time period, from about $5.57 two weeks ago to $5.52 this week.
Cheryl Anderson can be reached at Cheryl.firstname.lastname@example.org.
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