Ethanol Blog
Cheryl Anderson DTN Staff Reporter

Monday 01/28/13

Higher DDG Prices Seem Likely

The current upward trend in prices of dried distillers grains is likely to continue, though prices may not reach last August's record levels, according to Steve Knier, merchandiser for U.S. Commodities in Minneapolis.

For the fourth week in a row, the DTN DDG spot price average rose last week to $269 per ton, rising $14 per ton in the past four weeks. The increase also marked the high point DDG prices have reached since mid-November.

The catalyst for the uptrend was the Jan. 11 USDA Crop Production report that showed ending stocks of corn were lower than expected, pushing corn prices and DDG prices higher.

Also adding to the uptrend is buyers short-covering their needs and plants buying in sales to cover what they have on the books, Knier said. However, barges are moving more easily down the Mississippi with higher water levels, which is helping temper DDG prices.

The market may experience tight supplies as high corn prices are forcing some ethanol plants to either shut down temporarily or scale back production, Less ethanol production results in less DDG production, which could push DDG prices up even more.

Knier said he would not rule out prices reaching August 2012's record levels.

"It's not outside the realm of possibility," he said.

Cheryl Anderson can be reached at

Posted at 3:14PM CST 01/28/13 by Cheryl Anderson
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
June  2015
   1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30            
Subscribe to Ethanol Blog RSS
Recent Blog Posts
  • Energy Pressure Follows Weaker Stock Market
  • Argo, NYH Spot Ethanol Edge Lower With Corn, RBOB Futures
  • DDG Price Decline Slows Amid Sluggish Trade
  • Argo, NYH Spot Ethanol Trade Higher on Corn Futures Rally
  • Spot Ethanol Price Gains Backed by Corn Futures Rally
  • Grains Council Educates Japanese Swine Producers on DDGS
  • Uncertainty Seen in Ethanol Market Direction
  • Spot Ethanol Prices Higher on Falling Ethanol Stocks
  • Corn Rally Draws Ethanol Support
  • Spot Ethanol Prices Track Corn Futures Higher
  • Chinese Trade Disruptions Result in DDG Price Plunge
  • Ethanol Futures Close Week Higher
  • Conference: Aquaculture Must Diversify Feed Ingredients
  • Spot Ethanol Prices Soften on Rising Supply
  • Spot Ethanol Prices Mixed on Weekly EIA Supply Data
  • New York Spot Ethanol Biggest Gainer as Market Rebounds
  • China Rumors Worry DDG Market
  • Ethanol Futures Follow Outside Markets Lower
  • Argo, NYH Spot Ethanol Trade Lower on Rising Production
  • Spot Ethanol Values Pressured by Bearish Federal Data