The first ever-so-slight hints that rail car availability may be improving, coupled with some recovery from tight supplies, dropped prices of dried distillers grains in the past week.
The DTN weekly DDG spot price average fell $3 per ton since last week, from $239 $236. This dip follows 12 weeks of steady increases, as the average has increased every week since the second week of January.
Of the 30 Midwestern locations DTN collects spot prices from, 19 locations reported their prices had decreased between $5 and $15 per ton in the past week. Prices at nine locations remained unchanged since last week and only one location increased $5 per ton. One location still reported no offers this week.
Merchandisers told DTN that logistics and rail car availability were just slightly improved in the last week, with rail prices good if cars are available. Supplies are still tight, but improving as well, with more plants with offers and product to sell. Some described the past week as fairly quiet with time for a bit of a pullback in prices after prices rose quickly and for so long.
The value of DDG relative to corn fell slightly this week, from about 134% last week to about 131%. The value of DDG relative to soybean meal stayed relatively unchanged at about 49% this week.
The cost per unit of protein for DDG was about $9.44 this week, compared to the cost per unit of protein for soybean meal at $10.09.
Cheryl Anderson can be reached at Cheryl.firstname.lastname@example.org.
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