Dried distillers grains with solubles (DDGS) Price Trend and Forecast

DDGS Regional Price Overview

Get the latest insights on price movement and trend analysis of Dried distillers grains with solubles (DDGS) in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Dried Distillers Grains with Solubles (DDGS) Price Trend for the Second Half of 2023

Dried Distillers Grains with Solubles (DDGS) is the principal source of ethanol production, which is thus the main driver of the pricing trajectory of the market. The demand for livestock feed is also quite important since DDGS is an essential component because of its high nutritional content. DDGS production levels are also influenced by corn production and the dynamics of its market.
 

Dried distillers grains with solubles (DDGS) Price Chart

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In the end months of the year 2023, China decided to extend tariffs on distiller's dried grains with solubles (DDGS) from the United States for another five years, maintaining tariffs at levels of up to 66%. The move comes amidst high corn prices and weak domestic ethanol consumption in China due to which the domestic prices of distiller's dried grains with solubles (DDGS) in China as well as in Asian countries declined. The China Alcohol Industry Association supported the move, citing its effectiveness in curbing unfair trade practices and protecting the domestic DDGS industry.

DDGS, a high-protein meal, is widely used in livestock feed. On the other hand, the US traders estimate that the continuation of tariffs has not significantly impacted US exporters, as they redirected their sales to other markets like South Korea and Mexico, stabilizing the pricing patterns of distiller's dried grains with solubles (DDGS). The association warns that terminating anti-subsidy and anti-dumping measures could result in the resurgence of US DDGS exports to China at lower prices, potentially harming the domestic industry once again.

Analyst Insight

According to Procurement Resource, the price trend of Dried Distillers Grains with Solubles (DDGS) is estimated to function on changing dynamics of the trade between the US and China and fluctuating prices of corn and other feedstock materials.
 

Dried Distillers Grains with Solubles (DDGS) Price Trend for the First Half of 2023

Dried distillers grains with solubles (DDGS) are obtained as a side product in the production of ethanol from grains such as corn. It is composed of non-fermentable nutrients such as proteins, fiber, and lipids and thus is widely used as an animal feed for livestock such as cattle, swine, and poultry. It has a high nutrition profile and is valuable for its high protein content energy levels, and also offers it as an environmentally and economical option in the agricultural sector.

In the first quarter, China announced tariffs on dried distillers grains with solubles (DDGS) imports from the US as the domestic producers struggled with high corn prices and weak consumption by the consumers that negatively impacted the price trend of dried distillers grains with solubles (DDGS). Thus, for the revival of domestic industries and to curb with the lower demand, the government induced measures to reduce its dependence on US imports, causing a decline in the prices of dried distillers grains with solubles (DDGS).

Analyst Insight

According to Procurement Resource, the price of Dried distillers grains with solubles (DDGS) is estimated to follow a negative trajectory in the Asian markets in the upcoming months as the demand for dried distillers grains with solubles (DDGS) does not seem to support the rise in its prices.

Procurement Resource provides latest prices of Dried distillers grains with solubles (DDGS). Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.