DDGS Prices Head Higher in August   

Ethanol production peaked in early July at 1.067 million barrels per day and continued to drift lower every week since then.  August ethanol production averaged 949 thousand barrels per day with the final week’s output at 905 thousand barrels.  Reduced ethanol output leads to lower DDGS supply.  DDGS output fell from 101,480 metric tons per day in July to 86,073 by the end of August. 

Iowa DDGS price hit a low of $155 per ton in July but quickly bounced back towards $200 by the end of August as supply continued to slow. The average price for the month pushed to $182.59, which is in line with the historical trend of prices rising 80 percent of the time during August.

The average Iowa DDGS price in August was $62 per ton above values from a year ago and $65 per ton over the three-year average.  DDGS prices typically rise 40 percent of the time…