The market for dried distillers grains were slow in the past week, in what merchandisers described as a pre-holiday lull.
The weekly DTN DDG spot price average remained unchanged since last week at $219 per ton. This follows five weeks that the average increased, rising from $205 per ton in early November. However, the average has remained relatedly unchanged for the past three weeks, only rising $1 per ton since the first week of December.
Of the 30 Midwestern locations DTN collects prices from, 19 locations reported their spot prices remained unchanged since last week. Prices at six locations decreased between $4 and $10 per ton, and four locations reported price increases of $3 to $5 per ton. One location reported no offers.
Merchandisers told DTN this week that although demand was fairly steady, markets were quiet in the past week. This was partly to blame on the impending holidays, and partly from the market waiting to see whether China is going to begin refusing shipments of U.S. DDG that contain a GMO variety the country has not yet approved.
Some plants seemed more concerned to get product out before the holidays than with trying to get more sales on. Some merchandisers said they expect more trade and some buying opportunities in January.
The value of DDG finally fell slightly, but still landed at 142.44% of the price of corn. The value of DDG relative to soybean meal was at almost 50%.
The cost per unit of protein for DDG this week was $8.76, compared to the cost per unit of protein for soybean meal at $9.31.
Cheryl Anderson can be reached at Cheryl.email@example.com.
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