Market Matters Blog

DTN Weekly DDG Price Slightly Lower on Average

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's weekly spot price for domestic distillers dried grains during the week ended Sept. 16 was $1 lower on average versus one week ago. (DTN file photo)

OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Sept. 16 was $196 per ton, down $1 on average from one week ago. Prices were slightly lower this week as buyers have moved to the sidelines for now. In addition, DDG supplies are starting to creep higher with another increase in ethanol plant production last week.

The export market is still volatile as Gulf export terminals continue to come back online post Hurricane Ida, which made landfall on Aug. 29. Besides Cargill Westwego, Dreyfus, Bunge and ADM midstream, we were hearing Thursday that Zen-Oh Grain in Convent may have started up again as well. A freight broker reported there were 15 grain vessels loading for export at reopened Gulf terminals and midstream rigs this week, versus the three loaded at the end of last week and that it's still a slow process.

Wednesday's Energy Information Administration (EIA) report showed domestic inventory of ethanol was again drawn down, falling to a 14-week low through Sept. 10, though demand dropped to an over four-month low and production held higher. EIA reported overall production continued higher a second week, up 14,000 barrels per day (bpd) or 1.5% to a four-week high 937,000 bpd.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Sept. 9 was 103.65%. The value of DDG relative to soybean meal was 57.61% and the cost per unit of protein for DDG was $7.26, compared to the cost per unit of protein for soybean meal at $7.16.

In its weekly DDGS export price update, the U.S. Grains Council said: "On the export market, DDGS values are quoted steady or $4 to $5 metric ton (mt) higher this week, depending on the source. Some brokers report offers moved higher earlier this week, but it remains unclear if stronger trade interest drove the rally or supply-side dynamics. Regardless, FOB Gulf offers are steady this week at $265/mt while November and December positions are up $5/mt. Prices for 40-foot containers to Southeast Asia are mostly steady to slightly higher this week, with rates to Vietnam, Malaysia, and Myanmar leading the way."

NOTE: All prices listed below can change at any time and are subject to confirmation from seller.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 9/16/2021 9/9/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $210 $210 $0
Wet $105 $105 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $205 $205 $0
Wet $102 $102 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $185 $195 -$10
Indiana Dry $185 $190 -$5
Iowa Dry $190 $190 $0
Michigan Dry $190 $190 $0
Minnesota Dry $190 $190 $0
North Dakota Dry $190 $190 $0
New York Dry $220 $220 $0
South Dakota Dry $190 $190 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $195 $195 $0
Iowa Dry $205 $205 $0
Michigan Dry $200 $205 -$5
Minnesota Dry $205 $205 $0
Missouri Dry $215 $215 $0
Ohio Dry $190 $190 $0
South Dakota Dry $210 $216 -$6
Nebraska Dry $205 $205 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $195 $195 $0
Wet $80 $80 $0
Illinois Dry $195 $195 $0
Nebraska Dry $195 $195 $0
Wet $80 $80 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $195 $195 $0
Indiana Dry $195 $195 $0
Iowa Dry $192 $192 $0
Michigan Dry $195 $195 $0
Minnesota Dry $190 $190 $0
Nebraska Dry $195 $195 $0
New York Dry $210 $210 $0
North Dakota Dry $203 $203 $0
Ohio Dry $190 $190 $0
South Dakota Dry $200 $200 $0
Wisconsin Dry $175 $175 $0
Western Milling, Goshen, California (559-302-1074)
California subject Dry $263 $263 $0
*Prices listed per ton. $196 $197 -$1
Weekly Average
The weekly average prices above reflect only those companies DTN
collects spot prices from. States include: Missouri, Iowa, Nebraska,
Kansas, Illinois, Minnesota, North Dakota, South Dakota, Michigan,
Wisconsin and Indiana. Prices for Pennsylvania, New York and
California are not included in the averages.

**

VALUE OF DDG VS. CORN & SOYBEAN MEAL
Settlement Price: Quote Date Bushel Short Ton
Corn 9/16/2021 $5.2950 $189.11
Soybean Meal 9/16/2021 $340.20
DDG Weekly Average Spot Price $196.00
DDG Value Relative to: 9/16 9/9
Corn 103.65% 111.21%
Soybean Meal 57.61% 58.58%
Cost Per Unit of Protein:
DDG $7.26 $7.30
Soybean Meal $7.16 $7.08
Notes:
Corn and soybean prices take from DTN Market Quotes. DDG price
represents the average spot price from Midwest companies
collected on Thursday afternoons. Soybean meal cost per unit
of protein is cost per ton divided by 47.5. DDG cost per unit
of protein is cost per ton divided by 27.

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

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