October feed and meal prices, at $159 and $568 per ton, respectively, were close to September levels and still much weaker than year-ago values. Meal and feed were quite high last year, and while current prices seem to be tracking more closely with 2021/22, they are still higher than historical levels.
Formula-based crude corn oil pricing (derived from a 93.2 percent correlation to soybean oil futures) averaged near 52.3 cents per pound in October, down 12 percent from September. Corn oil accounted for 31.5 percent of the coproduct credit, a four-month low.
The coproduct credit was around $2.57 per bushel, down about 7 cents from September, due to lower corn oil pricing. With the decline in the credit and slightly higher cash corn pricing (up 4 cents month over month), net corn cost increased 14 cents per bushel from a month ago. Even with the weaker credit, however, net corn cost has been down by an average of 33 percent year over year since July.
The full version of this commentary appeared on our IQ platform Oct. 27, 2023. Further information, statistics, and pricing for the corn market are available to IQ subscribers.Learn more about becoming a subscriber.
Posted by: Information Services Our Information Services team assists our clients with understanding commodity and ingredient market dynamics. Using our extensive database of intelligence, we also produce regular commodity and commercial market publications covering supply and demand fundamentals, news alerts on events that shape the markets, and resource guides to give you a complete picture of the industries we monitor.