Ethanol Blog

DDG Prices Drop Slightly Amid West Coast Port Delays

Cheryl Anderson
By  Cheryl Anderson , DTN Staff Reporter

Prices of dried distillers grains remained fairly steady once again this week, in spite of continuing slow-downs in shipments in and out of western U.S. ports due to labor strikes.

The DTN weekly spot price average remained fairly steady, only dropping $1 in the past week, from $178 per ton last week to $177 per ton this week. This follows eight weeks the average has remained at about $178 per ton. In fact, the average has hovered between $176 and $178 per ton since mid-January.

Of the 36 Midwestern locations DTN collects spot prices from, 25 locations reported that their spot prices remained unchanged since last week. Prices at eight locations decreased between $5 and $10 per ton, while two locations reported increases of $5 and $15 per ton respectively. One location had no prices available last week, so no change was reported.

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Merchandisers told DTN they are still feeling the effect of the West Coast shipping delays, by ongoing labor strikes as the International Longshore and Warehouse Union is on strike. The strikes have severely restricted the movement of containers in and out of the U.S.

Supplies seem to be a little tight in some locations. Some merchandisers reported a little pressure in pricing; inclusion rates are slowing down, as the value of DDG relative to corn remains at a premium.

The value of DDG relative to corn this week did fall slightly this week, from about 129% last week to about 127% this week. The value of DDG relative to soybean meal also fell, from about 54% last week to about 51% this week.

The cost per unit of protein for DDG remained fairly steady at about $7.08 this week, compared to the cost per unit of protein for soybean meal at about $7.32.

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

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