NASHVILLE, Tenn. (RFD-TV) — Distillers dried grains (DDG) remain a key livestock feed ingredient, and their value continues to move closely with corn and soybean meal, according to Dr. Michael Langemeier of Purdue’s Center for Commercial Agriculture.
DDGs, produced at roughly 18 pounds per bushel of corn, offer higher protein content than corn alone and often replace part of both corn and soybean meal in rations. Historical price data from 2007–2024 show DDG values typically rise and fall alongside these feed inputs, though short-term disconnects emerge during unusual demand patterns or supply disruptions.
Langemeier’s analysis shows that even small changes in feedgrain markets translate into meaningful DDG price movement. A 10-cent increase in corn price typically adds more than $2 per ton to DDGs, while a $10 increase in soybean meal lifts DDGs by a similar amount. Combined, corn and meal trends explain most of the variation in DDG pricing, though factors such as ethanol plant operations, export flows, and local ration adjustments can temporarily push DDG prices above or below expected levels.
Using projected corn at $4.00 and soybean meal at $325, expected DDG prices for late 2025 and early 2026 are estimated to range from $145 to $155 per ton. A 10 percent swing in feedgrain prices pushes that range to as low as $125–$135 per ton or $160–$170 per ton, underscoring how sensitive DDG markets remain to broader feed conditions.
Farm-Level Takeaway: DDG values follow corn and soybean meal trends, with ethanol grind and feed demand shaping costs into early 2026.
Tony St. James, RFD-TV Markets Specialist
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