For the Quarter Ending September 2025
North America
• In the United States, the Distillers Corn Oil (DCO) Price Index remained stable quarter-over-quarter in Q3 2025.
• DCO production costs declined in Q3 2025, driven by robust corn production forecasts and lower corn feedstock costs.
• Animal feed demand for DCO strengthened in Q3 2025, supported by increased broiler production and strong retail sales (5.42% YoY, September 2025).
• Conversely, DCO demand from the biodiesel and renewable diesel sectors softened and weakened during Q3 2025.
• Ethanol production remained stable in Q3 2025, with slight capacity increase, influencing DCO co-product supply.
• Rising Consumer Price Index (3% YoY, September 2025) and Producer Price Index (2.6% YoY, August 2025) indicated increased operational costs for DCO producers.
• A low unemployment rate (4.3%, September 2025) supported consumer spending, while declining consumer confidence (94.2 index, September 2025) posed headwinds.
• Industrial production showed marginal growth (0.1% YoY, September 2025), indicating limited demand pull for DCO in industrial applications.
Why did the price of Distillers Corn Oil (DCO) change in September 2025 in North America?
• DCO production costs decreased due to robust corn production and declining corn feedstock costs in Q3 2025.
• Animal feed demand strengthened, supported by increased broiler production and strong retail sales (5.42% YoY, September 2025).
• Softened biodiesel and weakened renewable diesel demand partially offset positive animal feed market trends.
APAC
• In China, the Distillers Corn Oil (DCO) Price Index fell quarter-over-quarter in Q3 2025, influenced by producer deflation of -2.3% in September.
• DCO production costs were stable-to-soft in Q3 2025, despite Dalian Commodity Exchange corn futures trending higher August-September.
• Animal feed demand for DCO strengthened in Q3 2025, driven by ongoing swine restocking and expanding livestock industry.
• China's Manufacturing Index contracted in September 2025, indicating reduced industrial activity and lower raw material demand.
• Industrial production expanded 6.5% year-on-year in September 2025, supporting DCO demand for industrial applications.
• Consumer Price Index (CPI) decreased -0.3% in September 2025, reflecting weak consumer demand and bearish consumer confidence.
• Biodiesel exports from China plummeted in 2025 due to EU anti-dumping duties, significantly reducing DCO demand.
Why did the price of Distillers Corn Oil (DCO) change in September 2025 in APAC?
• Persistent producer deflation, with Producer Price Index declining -2.3% in September 2025, exerted downward pressure on DCO prices.
• Contracting Manufacturing Index in September 2025 reduced industrial demand for DCO and related oleochemicals.
• Plummeting biodiesel exports from China in 2025, due to EU duties, significantly curtailed DCO demand.
Europe
• In Germany, the Distillers Corn Oil (DCO) Price Index remained stable in Q3 2025, balancing subdued feedstock costs and mixed demand.
• DCO production costs rose from strengthening German electricity and elevated European natural gas prices in Q3 2025.
• Lower producer prices, down 1.7% year-over-year in September 2025, partially mitigated DCO cost increases.
• Animal feed demand strengthened in Q3 2025, supported by 0.2% retail sales growth and stable 6.3% unemployment.
• Manufacturing Index contracted in Q3 2025; industrial production declined 1.0% in September 2025, impacting DCO demand.
• European corn feedstock prices remained subdued in September 2025, with maize inventories increasing in major markets.
• Uncertainty regarding German biofuel legislation created cautious DCO demand in Q3 2025, affecting its price forecast.
• Overall inflation, with Consumer Price Index up 2.4% year-over-year in September 2025, increased DCO costs and reduced consumer purchasing.
Why did the price of Distillers Corn Oil (DCO) change in September 2025 in Europe?
• Subdued European corn feedstock prices in September 2025 eased DCO production costs.
• Strengthening German electricity and elevated European natural gas prices in Q3 2025 increased ethanol output costs.
• Increased animal feed demand in Q3 2025, supported by stable unemployment, provided DCO price support.