DDGS Weekly Market Report – February 15, 2024

USDA reported DDGS prices averaged $203 per short ton in the February 9 National Weekly Ethanol Report. This was down $3 per short ton from the previous week.

The DDGS/cash corn ratio was 1.32. This was up slightly from last week as corn had a larger drop than DDGS. The ratio has been hovering around 1.3 since late November 2023, and is significantly higher than it has been the past two years (1.00-1.15). The DDGS/KC soybean meal ratio was 0.55, down slightly from last week. This ratio has been weakening over the past two weeks after a strong run up from October to January.

The EIA reported U.S. ethanol production averaged 1.083 million barrels per day (bpd) the week ending February 9. This was up 60,000 bpd week-over-week and 69,000 bpd (7%) year-over-year. The 4-week average production was 9814.25 bpd, up 7250 bpd from last week. This broke a streak of 6 consecutive weeks where the 4-week average was moving lower.