Export demand for dried distillers grains strengthened this week, bringing an end to a five-week downward trend in DDG prices.
The DTN weekly DDG price average rose $4 per ton in the past two weeks, from $252 per ton to $256, after falling every week since mid-October. The DTN weekly DDG spot price average rose $4 per ton in the past two weeks, climbing from $252 to $256 per ton.
Merchandisers told DTN that in addition to the renewed export demand, price increases were due to plants finally selling off some excess supplies that had built up in recent weeks. Many plants are selling off product onto barges in order to move out product.
Talk that officials could close down portions of the Mississippi River because of low water levels is still just rumors at this time, but could push DDG prices lower again if merchandisers are unable to put product onto barges and have to find another outlet.
Of the 30 Midwestern locations DTN collects prices from, 19 locations reported their prices had increased between $3 and $15 per ton, though most price increases were in the $5 to $10 range. Prices at seven locations remained the same, and only two had price decreases. One location had no offers, and one reported having product once again after weeks of no offers.
The value of DDG relative to corn was at about 95.38% this week, while the value of DDG relative to soybean meal was at 57.83%.
The cost per unit of protein for DDG was $10.24 this week, compared to the cost per unit of protein for soybean meal at $9.32.
Cheryl Anderson can be reached at Cheryl.email@example.com.
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