Healthy demand from both export and domestic markets, as well as an early-week corn board rally, acted to firm up prices of dried distillers grains in the past week.
The DTN weekly DDG spot price average increased for the second week in a row, rising $3 per ton in the past two weeks after a nine-week downward trend. The average this week rose just $2 per ton, from $227 per ton to $229. But even with the slight increases, the average remains lower than it has been since mid-June 2012.
Of the 29 Midwestern locations DTN collects prices from, 16 reported that their prices had increased in the past week between $2 and $10 per ton, though most increases were in the $2 to $5 range. Prices at 12 locations remained unchanged from last week, while only one location had a slight price decrease.
Merchandisers told DTN this week that export demand has picked up considerably recently and that container markets are acting to strengthen DDG prices. Prices of DDG also increased slightly earlier in the week, mirroring a spike in the corn board. Domestic demand is steady as well, as at least one company reported being sold out mostly for June and July.
The value of DDG relative to corn remained fairly steady this week, rising only slightly from 96.01% to 96.42%. The value of DDG relative to soybean meal was relatively unchanged as well, falling from 51.95% to 51.54%.
The cost per unit of protein for DDG this week was $9.16, compared to the cost per unit of soybean meal at $9.35.
Cheryl Anderson can be reached at Cheryl.firstname.lastname@example.org.
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