Ethanol Blog

Rising Corn, Soybean Meal Prices Push DDG Prices Higher

Cheryl Anderson
By  Cheryl Anderson , DTN Staff Reporter

Prices of dried distillers grains spiked approximately $7 per ton since last week, propelled higher by rising corn and soybean meal prices.

The DTN weekly spot price average rose a sizeable $7 per ton in the past week, from $104 per ton last week to $111 per ton this week. This is the highest the average has reached since mid-September, and is the fourth consecutive week prices have increased, rising $13 per ton during that time, from $98 per ton the third week of October to this week's $111 per ton.

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Of the 36 Midwestern locations DTN collects spot prices from, 31 locations reported their prices had increased between $3 and $20 per ton since last week, although most increases were in the $5- to $10-per-ton range. Prices at five locations remained unchanged since last week and no price decreases were reported.

Merchandisers told DTN that the rise in corn and soybean meal prices was likely related to high freight costs. That, in turn, pushed DDG prices upward, since DDG often mirrors movement in prices of its two largest competitors for protein sources in livestock rations.

The value of DDG relative to corn this week rose slightly, from about 78% last week to about 80% this week. The value of DDG relative to soybean meal also climbed from about 27% last week to about 28% this week.

The cost per unit of protein for DDG was at about $4.44 this week, compared to the cost per unit of protein for soybean meal at about $8.28.

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

(AG)

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