Market Matters Blog

DTN Weekly DDG Price Higher 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 Nov. 18 was up $1 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 Nov. 18 was $184 per ton, up $1 per ton on average from one week ago. DDG prices have found support from the surge in soybean meal which has been rallying due to heavy demand because of the shortage of the feed additive L-lysine. Talk is that spot cash prices (no prior contract) for soybean meal have at least doubled recently and possibly even higher.

Wednesday's Energy Information Administration (EIA) report showed overall ethanol production rose 21,000 barrels per day (bpd) to 1.060 million bpd as of Nov. 12, 10.2% above the same week in 2020. Midwest PADD 2 plant production also increased last week, up 26,000 bpd or 2.6% to 1.008 million bpd, 10% higher than output during the corresponding week last year.

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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 18 was 89.91%. The value of DDG relative to soybean meal was 49.68% and the cost per unit of protein for DDG was $6.81, compared to the cost per unit of protein for soybean meal at $7.80.

In its weekly DDGS export price update, the U.S. Grains Council said: "Brokers and exporters report DDGS demand is picking up on the export market. Lower freight rates have helped boost international interest, but buyers also have to contend with this week's foreign exchange rate swings. Barge CIF NOLA offers are up $7 to $9 metric ton (mt) for December-February shipment while FOB Gulf offers are $2 to $3/mt higher for December and January and $7/mt higher for February. Trade to Southeast Asia is still slow and characterized by a wide bid/ask spread but offers are up $5 to $10/mt for Q1 2022 shipment, averaging $357/mt for 40-foot containers."

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 11/18/2021 11/11/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $208 $208 $0
Wet $104 $104 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $205 $205 $0
Wet $105 $105 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $195 $190 $5
Indiana Dry $155 $155 $0
Iowa Dry $170 $170 $0
Michigan Dry $150 $170 -$20
Minnesota Dry $175 $170 $5
North Dakota Dry $180 $175 $5
New York Dry $185 $205 -$20
South Dakota Dry $180 $180 $0
MGP Ingredients, Atchison, KS (800-255-0302)
Dry
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $185 $175 $10
Iowa Dry $175 $175 $0
Michigan Dry $185 $185 $0
Minnesota Dry $180 $180 $0
Missouri Dry $205 $205 $0
Ohio Dry $185 $175 $10
South Dakota Dry $186 $186 $0
Nebraska Dry $190 $190 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $220 $220 $0
Wet $80 $80 $0
Illinois Dry $205 $192 $13
Nebraska Dry $220 $220 $0
Wet $80 $80 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $175 $175 $0
Indiana Dry $170 $170 $0
Iowa Dry $170 $175 -$5
Michigan Dry $180 $180 $0
Minnesota Dry $165 $165 $0
Nebraska Dry $190 $190 $0
New York Dry $200 $200 $0
North Dakota Dry $198 $195 $3
Ohio Dry $165 $165 $0
South Dakota Dry $185 $185 $0
Wisconsin Dry $170 $170 $0
Western Kansas Dry $267 $255 $12
Wet $100 $95 5
Central Kansas Dry $240 $240 0
Wet $85 $85 0
Western Milling, Goshen, California (559-302-1074)
California Dry $292 $288 $4
*Prices listed per ton. $184 $183 $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 11/18/2021 $5.7300 $204.64
Soybean Meal 11/18/2021 $370.40
DDG Weekly Average Spot Price $184.00
DDG Value Relative to: 11/18 11/11
Corn 89.91% 89.97%
Soybean Meal 49.68% 53.12%
Cost Per Unit of Protein:
DDG $6.81 $6.78
Soybean Meal $7.80 $7.25
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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