Ethanol Blog

A slow week of trade last week ended in only a slight rise in prices of dried distillers grains.

The DTN weekly spot price average rose $2 per ton last week from the week prior, from $176 per ton to $178 last Friday. This marks about 12 consecutive weeks that the average has risen and is the highest the average has been since early June 2014.

Of the 36 Midwestern locations DTN collects spot prices from, 21 reported their prices remained unchanged last week from the week prior. Prices at 13 locations increased between $5 and $15 per ton, while only two locations had price decreases last week of $5 from the week prior.

Merchandisers described trade as "flat" and "quiet" last week, with not a lot of product moving. With the CIF market down, the general feeling was that prices of DDG were higher than corn and soybean meal in both futures and cash markets, and exports would support prices. Some companies reported being short on product last week.

The value of DDG relative to corn fell only slightly to about 129% last week from about 130% the week prior. The value of DDG relative to soybean meal remained relatively unchanged at about 54%.

The cost per unit of protein for DDG and soybean meal both remained unchanged at about $7.12 and $6.98 respectively.

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

(ES)

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