For the Quarter Ending September 2025
North America
• In United States, the Distillers Dried Grain Soluble (DDGS) Price Index rose quarter-over-quarter in Q3 2025, driven by robust domestic livestock feed demand.
• DDGS demand outlook was bullish, supported by a 5.42% year-over-year retail sales increase in September 2025.
• Production cost trends for DDGS weakened in Q3 2025 due to lower corn feedstock costs and dipping natural gas prices.
• The 0.1% year-over-year industrial production increase in September 2025 suggested constrained DDGS supply.
• U.S. DDGS export volumes expanded significantly in July 2025, with notable surges to key international markets.
• The 4.3% unemployment rate in September 2025 supported consumer purchasing power, bolstering animal product demand.
• General inflation, indicated by a 3.0% CPI and 2.6% PPI increase in Q3 2025, influenced overall production costs.
• Consumer Confidence Index declined to 94.2 in September 2025, suggesting increased caution, potentially dampening premium animal product demand.
Why did the price of Distillers Dried Grain Soluble (DDGS) change in September 2025 in North America?
• Domestic livestock feed demand strengthened in Q3 2025, with cattle prices reaching record highs.
• U.S. DDGS export volumes expanded significantly in July 2025, increasing overall demand.
• Ethanol inventories tightened in July 2025, suggesting constrained co-produced DDGS supply.
APAC
• In China, the Distillers Dried Grain Soluble (DDGS) Price Index rose in Q3 2025, influenced by higher corn feedstock costs.
• DDGS production costs increased as corn feedstock trended higher in September 2025.
• DDGS demand outlook strengthened in Q3 2025, supported by recovering swine and strengthening poultry production.
• Reduced ethanol plant operations in Q3 2025 constrained DDGS supply, impacting market availability.
• China's CPI fell 0.3% and PPI declined 2.3% in September 2025, indicating deflationary pressures.
• The Manufacturing Index was contracting in September 2025, signaling a slowdown in economic activity.
• Industrial production grew 6.5% and retail sales increased 3.0% in September 2025, offering demand support.
• China's corn imports plummeted in July 2025, contributing to domestic feedstock cost pressures.
• Consumer confidence at 89.6 and unemployment at 5.2% in September 2025 suggested reduced purchasing power.
Why did the price of Distillers Dried Grain Soluble (DDGS) change in September 2025 in APAC?
• Higher corn feedstock costs in September 2025 directly increased DDGS production expenses.
• Reduced ethanol plant operations in Q3 2025 constrained DDGS supply.
• Strengthened animal feed demand in Q3 2025, from swine and poultry, supported price increases.
Europe
• In Germany, the Distillers Dried Grain Soluble (DDGS) Price Index fell quarter-over-quarter in Q3 2025, influenced by contracting industrial activity.
• DDGS production costs faced upward pressure from firming European maize prices in Q3 2025 and higher ethanol feedstock costs.
• However, producer prices for industrial products declined by 1.7% in September 2025, primarily due to lower energy costs.
• Demand for DDGS was supported by expected modest increases in German cattle feed production in 2025.
• Poultry feed demand in the EU is poised for growth in 2025, further strengthening DDGS adoption for sustainable sources.
• Overall industrial production in Germany decreased by 1.0% in September 2025, indicating a broader economic slowdown.
• Consumer price inflation rose 2.4% in September 2025, potentially impacting consumer purchasing power for animal products.
• The German unemployment rate remained stable at 6.3% in September 2025, supporting consistent consumer spending on food.
• European biofuel production, and consequently DDGS output, is increasing in 2025, contributing to overall supply.
• Europe continues as a substantial import market for DDGS in 2025, despite increasing domestic biofuel production.
Why did the price of Distillers Dried Grain Soluble (DDGS) change in September 2025 in Europe?
• DDGS production costs were mixed; maize firmed, but producer prices declined 1.7% in September.
• Contracting industrial activity and 2.4% CPI increase in September 2025 created demand headwinds.
• Stable 6.3% unemployment in September 2025 and growing poultry feed demand provided some support.