Ethanol Blog
Cheryl Anderson DTN Staff Reporter

Monday 09/30/13

Lower Corn Prices, Basis Pushes DDG Price Plunge

Prices of dried distillers grains took a plunge last week, due largely to decreases in corn prices and corn basis, as new crop corn began to roll in.

The DTN weekly DDG spot price average fell $13 per ton in the past two weeks, from $224 two weeks ago to $211 last week. This is the lowest level the average has reached since mid-April 2012. It also marks the fourth consecutive week that prices have followed a downward trend, falling $16 per ton in that time period, from $227 the first week of September to $211 per ton last week.

All 30 of the Midwestern locations DTN collects spot prices from reported price increase between $5 and $25 per ton in the past week. No price decreases were reported.

Merchandisers told DTN that ethanol plants are now able to get cheaper new crop corn, so prices are dropping, and may continue to even fall further as harvest continues and more new crop corn comes in. Demand for DDG continues to be very good, as one merchandiser reported being sold out of product for October and November.

The value of DDG relative to corn last week was at about 129.35%; however, that is a distorted number. The abrupt shift in the DDG to corn ratio after July 12 is due to the transition from July corn futures to the lower-priced September corn contract. The value of DDG relative to soybean meal was at about 50.67%.

The cost per unit of protein for DDG was $8.44 last week, compared to the cost per unit of protein for soybean meal at $8.77.

Cheryl Anderson can be reached at cheryl.anderson@telventdtn.com

(ES)

Posted at 12:28PM CDT 09/30/13 by Cheryl Anderson
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