Despite upward movement on the corn board and some continuing tightness in supply, prices of dried distillers grains increased only slightly this week.
The DTN weekly DDG spot price average rose to $267 per ton, only $1 per ton higher than last week's $266 per ton average. This marks the seventh week that the average has hovered between $266 and $271 per ton
Of the 29 Midwestern locations DTN collects prices from, 16 locations reported their prices had increased between $2 and $10 per ton in the past week, although most increases were in the $3 to $5 per ton range. Prices at eight locations remained the same as the week prior, while only five locations reported price decreases between $3 and $10 per ton.
Merchandisers told DTN this week that DDG was most unchanged, but followed the corn board higher in some spots. This week also saw some continued tightness in supply, although at least one ethanol plant started production back up recently in Nebraska, adding more product to supplies in some Nebraska and Kansas areas. Some increase in export demand was also seen this week.
The value of DDG relative to corn finally took a tumble this week from the 107% mark where it has hovered for two weeks, falling to 103.91% this week. The value of DDG relative to soybean meal was at 61.41%.
The cost per unit of protein for DDG was $10.68 last week, compared to the cost per unit of protein for soybeans at $9.15.
Cheryl Anderson can be reached at Cheryl.firstname.lastname@example.org.
© Copyright 2013 DTN/The Progressive Farmer. All rights reserved.