OMAHA (DTN) The average price for domestic distillers dried grains (DDG) from the 39 locations DTN contacted with spot offers for the week ended Jan. 21 was $231 per ton, up $1 on average from one week ago.

Domestic DDG prices settled back from recent highs, ending this week mixed. With some plants slowing production, supplies have become tight in those spots, but as corn and soybean meal cash prices have come down this week, DDG prices came under pressure this past week. However, so far in the 2020-21 marketing year, FOB Gulf soymeal prices are up 40% while FOB Gulf DDGS values have risen 47%.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 21 was 123.37% versus the five-year average of 109%. The value of DDG relative to soybean meal was 52.72% versus the three-year average of 42%. The cost per unit of protein for DDG was $8.56, compared to the cost per unit of protein for soybean meal at $9.23.

In their weekly export DDGS update, the U.S. Grains Council noted that industry sources say the volatility in corn and soybean markets and concerns with container freight rates are complicating forward sales.

"Reportedly, container lines are hesitant to lock in rates more than four weeks forward, which is making DDGS sales from March forward more difficult. Southeast Asian buyers still need to purchase a large portion of their first quarter to early second quarter needs but are being cautious amid rising commodity prices.

"Barge CIF NOLA values are up $3 to $4 per metric ton (mt) this week while FOB NOLA offers have declined $4 to $6/mt for February and March shipment, decreasing netbacks to merchandisers looking to move product on the river. U.S. rail rates are down $2 to $3/mt this week while offers for 40-foot containers to Southeast Asia are mostly steady at $349-$350/mt," said USGC.

NOTE: All prices listed below can change at any time and are subject to confirmation from seller.

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Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

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