Ethanol Blog
Cheryl Anderson DTN Staff Reporter

Friday 12/06/13

Tightness in DDG Supplies, Railcars Pushes DDG Prices Upward

Recent tightness in supplies of dried distillers grains, coupled with a shortage of railcars, pushed DDG prices on a continuing upward trend in the past two weeks.

The DTN weekly DDG spot price average rose $6 per ton in the past two weeks, from $212 the third week of November to this week's $218 per ton. This marks the fourth consecutive week the average has increased, rising a total of $13 per ton since early November, when the average was at $205 per ton.

Of the 30 Midwestern locations DTN collects prices from, 21 locations reported that in the past two weeks, their spot prices had increased between $4 and $30 per ton, though most increases were in the $5 to $10 range. Prices at seven locations remained unchanged in the past two weeks. Only one location reported a decrease of $3 per ton and one location had no offers.

Merchandisers told DTN that continuing tightness in DDG supplies caused the continuing rise in prices. Equally to blame for price spikes is a shortage of railcars. Merchandisers said shipments of DDG are backed up, so no new sales can be made until current contracts are completed. Also factoring in the equation is a surge in the price of proteins, forcing DDG to follow the trend.

The value of DDG relative to corn this week rose to a new record at more than 144%. The value of DDG relative to soybean meal this week was at 48.87%.

The cost per unit of protein for DDG was at $8.72 this week, compared to the cost per unit of protein for soybean meal at $9.39.

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

(ES/)

Posted at 7:27AM CST 12/06/13 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
December  2014
S M T W T F S
   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 31         
Subscribe to Ethanol Blog RSS
Recent Blog Posts