US DDG Prices Rise Amid Tight Supplies and Higher Corn and Soybean Prices
The average price of distillers dried grains (DDG) in the US has increased by $11 per short ton to $174, according to DTN's weekly spot price for the week ended August 27. This sharp rise is largely attributed to a boost in corn and soybean prices. A merchandiser told DTN that some states are experiencing tight supplies amid rising demand.
DTN's National Average Corn Index was up by 33 cents per bushel (basis SEP), while soybean meal prices also rose, increasing by $17.10 per short ton (basis DEC) versus the previous week. The value of DDG relative to corn for the week ended August 27 was 0.913%, and its value relative to soybean meal was 51.04%. Additionally, the cost per unit of protein for DDG was $6.44 compared to $7.18 for soybean meal.
The US Grains and Bioproducts Council reported that export market prices for DDGS were higher in various regions, with CIF NOLA barge price up by $9 at $246 metric ton (mt), FOB vessel Gulf price up by $14 at $248 mt, rail delivered PNW up by $14 at $286, and rail delivered to California up by 14 at $281 mt.