05.17.2024
Uncertainty with 45z tax credit may affect Q1 2025 biofuel contracts
The expiring BTC provides a one dollar per gallon blenders credit up front with an additional 30 to 40 cents of credit to producers on the backend. Crimson...
DDGS – Iowa
DDGS prices have been trading well above average for this time of year. The average price paid during November in Iowa was $174.55 per ton. This is $40 to $60 per ton higher than prices have ranged over the past three years and $55 per ton over the five-year average.
Reduced gasoline demand throughout the pandemic has led to much lower production of ethanol relative to prior years. Reduced ethanol output translates into lower DDGS supply, given DDGS is a co-product of ethanol output. This, in turn, has allowed prices to churn higher on reduced supply. Historically, there has been a 60% chance of DDGS prices rising during December. With prices in Iowa and much of the Midwest pushing up towards, and over, $200 per ton in…