Export demand for U.S. distillers dried grains picked up in recent weeks, accounting for a slight upturn in spot prices in some markets.
The DTN weekly spot price average increased just slightly in the past week, from $125 per ton last week to $126 this week. This is the second week the average has marginally risen, having hovered between $123 and $126 per ton during that time. This week's average is the highest since mid-March.
Of the 36 Midwestern locations DTN collects spot prices from, 17 locations reported their spot prices increased between $2 and $8 per ton in the past week, though most price increases were in the $3 to $5 range. Prices at 14 locations remained unchanged, while only five locations had spot prices decrease between $3 and $5.
Merchandisers told DTN this week that export markets are slowly improving, with some unconfirmed rumors circulating that some trading with China has occurred. Also rumored is that Chinese markets may be even better for June trading.
The slight upturn in prices was also due to the market reacting to movement on the corn and soybean meal boards; however, that movement has been up and down in recent days.
Current spot prices are higher right now than deferred, making for a somewhat slow week in trade.
The value of DDG relative to corn this week was at about 95%, up from last week's 89%. The value of DDG relative to soybean meal remained fairly steady at about 38%.
The cost per unit of protein for DDG was at about $5.04 this week, compared to the cost per unit of protein for soybean meal at $7.45.
Cheryl Anderson can be reached at Cheryl.firstname.lastname@example.org.
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