By Cheryl Anderson
DTN Staff Reporter
Lackluster interest in purchasing dried distillers grains caused prices to remain fairly steady in the past week.
The DTN weekly DDG spot price average remained unchanged this week at $185 per ton. This is the first week the average has not followed its slow upward trend since late February. Still, prices have remained between $178 and $185 per ton for the past 13 weeks.
Of the 36 Midwestern locations DTN collects spot prices from, 14 locations reported their spot prices remained unchanged since last week. Spot prices at 12 locations increased between $3 and $10 per ton since last week, while nine locations reported their spot prices increased between $3 and $10 per ton in the past week. One location had no offers this week.
Merchandisers told DTN there is currently not a lot of local interest in purchasing DDG this week. Interest in deferred months declined, bringing interest in the nearby along for the downhill ride. One merchandiser described the situation as "a disinterested market."
Some shortness in product was reported this week, due partly to ethanol plants taking their scheduled spring maintenance shut-downs, which will likely continue through April and May. This is leaving merchandisers with having to work out logistics from week to week, with not a lot of bullish indicators for the future.
Due to the tight supplies, many merchandisers reported plants being sold out, with not a lot to sell. One commented that when he does have something to sell, buyers snatch it right up.
It was also reported this week that prices may be adjusted a bit higher, since rail demand is a bit lower. In any case, prices were firmer in some markets and lower in others, with no clear trend in either direction.
The value of DDG relative to corn this week remained fairly steady, rising only about 1%, from about 137% last week to about 138% this week. The value of DDG relative to soybean meal remained steady at about 59%.
The cost per unit of protein for DDG was about $7.40 this week, compared to the cost per unit of soybean meal at about $6.58.
Cheryl Anderson can be reached at email@example.com
© Copyright 2015 DTN/The Progressive Farmer. All rights reserved.