DDG Prices Surge Amid Tight Supplies and Higher Corn, Soybean Prices

DTN's weekly spot price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Aug. 27 was $174 per short ton on average, up $11 versus one week ago.

The surge in DDG prices is attributed to a jump in corn and soybean prices last week. One merchandiser told DTN that some states are reporting tight supplies amid increasing demand.

According to the DTN National Average Corn Index, the cash corn price was higher versus one week ago, up 33 cents per bushel (basis SEP). Soybean meal prices also increased, up $17.10 per short ton (basis DEC) versus one week ago.

The value of DDG relative to corn for the week ended Aug. 27 was 0.913%, while the value of DDG relative to soybean meal was 51.04%. The cost per unit of protein for DDG was $6.44 compared to the cost per unit of protein for soybean meal at $7.18.

U.S. Grains and Bioproducts Council's weekly distillers dried grains with solubles (DDGS) export market prices report showed that CIF NOLA barge price was up $9 at $246 metric ton, FOB vessel Gulf price was up $14 at $248 mt, rail delivered PNW was up $14 at $286, and rail delivered to California was up 14 at $281 mt.