Entering the fourth quarter this year, increased usage of new-crop corn has boosted DDGS production. Variations in raw grain quality across major producing regions have further led to significant divergence in DDGS spot quality. In the Northeast region, some DDGS shipments feature superior quality and command higher prices, with spot transaction prices edging down slightly. In the Central China region, DDGS with appearance grades of 3-4 have seen new order prices decline consecutively.

As new-crop corn prices rise, cost pressures intensify. Some corn ethanol producers in Northeast China have reduced output, strengthening their resolve to maintain DDGS prices. Meanwhile, Central China enterprises have increased low-priced new orders while limiting acceptance of future contracts. Livestock feeders show subdued essential demand, with downstream buyers primarily engaging in flexible procurement based on DDGS quality.

In the near term, quality disparities in DDGS are expected to persist, potentially pushing the average spot price downward within a narrow range.

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