DDGS prices drop below 5-year average as US production rebounds

DDGS prices in the US have finally dipped below the five-year average, a relief for the feed industry after three years of elevated prices around $200 per short ton, notes a report. Production of Distillers Dried Grains with Solubles (DDGS) is now on track to reach pre-COVID five-year averages, as both ethanol and DDGS production recover from the pandemic's impact on output. The increased supply of DDGS is easing pressure in the US feed market, according to the latest Rabobank North American agribusiness review. It highlighted the strain high corn and meal prices have placed on feed cost management. US DDGS exports are also experiencing strong growth, rising by 15% from January to August compared to the same period last year, with Mexico remaining the largest buyer. Exports to Mexico expanded by 18% year-on-year, reinforcing its status as a critical market. The drop in DDGS prices aligns with declines across other agricultural commodities, driven in part by higher ethanol ...