Prices of dried distillers grains took a hefty plunge this week, due largely to dismal export demand and ethanol plants trying to clear out extra product. With the continued downward trend, this week is the lowest DDG prices have been since the second week in July.
The DTN weekly DDG spot price average fell a whopping $10 per ton this week, from $261 per ton last week to $251 per ton this week. This marks the fifth week in a row of a continuing downward trend in prices, falling from $273 per ton in mid-October to $251 this week.
Of the 30 Midwestern locations DTN collects prices from, 25 locations reported their prices had dropped this week between $3 and $22 per ton, though the majority of increases were in the $10 to $15 per ton range. Only one location increased its price by $3 per ton this week. Prices at two locations remained the same as last week and two locations reported no offers.
Merchandisers told DTN that part of the reason for the price decline is a continued lack of export demand, combined with plants trying to move product that is beginning to pile up. With the four-day weekend coming up next week and no trucks coming in for four days, plants are dropping prices to make sure supplies are cleaned out before that.
The value of DDG relative to corn fell about one point this week, from 98.59% last week to 97.44% this week. The value of DDG relative to soybean meal increased slightly from 56.38% last week to 58.30% this week.
The cost per unit of protein for DDG was $10.04 this week, compared to the cost per unit of protein for soybeans at $9.06.
Cheryl Anderson can be reached at Cheryl.email@example.com.
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