Ethanol Blog
DDG Prices Rise Slightly in Slow Week of Trade
Prices of dried distillers grains remained once again on a fairly steady tread, rising an average of only $1 per ton in the past week in what was described as a slow week in trade.
The DTN weekly DDG spot price average rose from $181 last week to $182 per ton this week. The average has remained relative steady for the past three months, hovering between $178 and $182 per ton since mid-January. Still, this is the highest the average has reached since mid-June 2014.
Of the 36 Midwestern locations DTN collects spot prices from, 23 locations reported their spot prices remained unchanged since last week. Spot prices at nine locations increased between $5 and $10 per ton in the past week, while only three locations had spot prices decreases of $4 to $10 per ton. One location had no offers this week.
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Merchandisers told DTN they had somewhat slow trade and DDG prices saw very little movement this week. The slight increase in prices could be caused by ethanol plants beginning their scheduled spring maintenance shut-down, which also likely caused tighter supplies.
Some merchandisers felt that as shut-downs progress, the decreased production may lead to increased prices as April continues.
This week also saw more barge movement in the upper Mississippi as spring thaw is underway, with more freight moving out of central Iowa.
The value of DDG relative to corn this week was at about 132%, rising from about 130% last week. The value of DDG relative to soybean meal remained steady at about 56%.
The cost per unit of protein for DDG was at about $7.28 this week, compared to the cost per unit of protein for soybean meal at about $6.89.
Cheryl Anderson can be reached at Cheryl.anderson@dtn.com
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