Market Matters Blog
Weekly DTN Average DDG Price Higher for Tenth Week in a Row
OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended Feb. 24 was $248 per ton, up $10 per ton versus one week ago.
DDG prices are on a ten-week winning streak as demand from feeders continues. Also still adding to the strength is higher soybean meal prices. One merchandiser noted some plants are preparing for maintenance, which will keep DDG supplies tight in some areas.
Current DDG prices listed below may react to the extreme volatility in corn, soybean meal and all the grain markets seen on Feb. 24 and Feb. 25, so please treat all the prices quoted this week as subject to change.
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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Thursday, Feb. 24 was 99.91%. The value of DDG relative to soybean meal was 53.34%, and the cost per unit of protein for DDG was $9.19, compared to the cost per unit of protein for soybean meal at $9.79.
The Energy Information Administration (EIA) report this week showed U.S. ethanol production remains strong, while demand moved to an eight-week high through Feb. 18. EIA reported domestic ethanol production rose 15,000 barrels per day (bpd) or 1.5% last week to 1.009 million bpd, above 1 million bpd for 19 of the last 20 weeks. Four-week average output totaled 1.017 million bpd, up from 1.02 million bpd four weeks earlier and above the 860,000 bpd level reported in the same four-week period of 2021.
In their weekly DDGS update, the U.S. Grains Council said, "Barge freight rate is rising again due to cold temperatures and logistics challenges in the Midwest. Barge CIF NOLA DDGS prices are up $5 to $7 metric ton (mt) for spot positions while FOB Gulf offers are steady/$2 higher for March -- May shipment. U.S. rail rates are roughly $20/mt higher this week with offers for product delivered into the PNW up $18/mt for March shipment. Exporters and brokers report the market for containerized DDGS to Southeast Asia remains quiet again this week with spotty bids/offers. Offers average $360/mt this week, down from the prior week."
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 | 2/24/2022 | 2/17/2022 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $265 | $250 | $15 | |
| Wet | $145 | $140 | $5 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Dry | $280 | $255 | $25 | ||
| Wet | $160 | $135 | $25 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $240 | $225 | $15 | |
| Indiana | Dry | $240 | $225 | $15 | |
| Iowa | Dry | $245 | $230 | $15 | |
| Michigan | Dry | $235 | $220 | $15 | |
| Minnesota | Dry | $250 | $235 | $15 | |
| New York | Dry | $270 | $255 | $15 | |
| South Dakota | Dry | $260 | $245 | $15 | |
| MGP Ingredients, Atchison, KS (800-255-0302) | |||||
| Dry | $255 | $245 | $10 | ||
| Wet | $86 | $85 | $1 | ||
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $240 | $220 | $20 | |
| Iowa | Dry | $280 | $255 | $25 | |
| Michigan | Dry | $245 | $225 | $20 | |
| Minnesota | Dry | $270 | $255 | $15 | |
| Missouri | Dry | $285 | $265 | $20 | |
| Ohio | Dry | $240 | $220 | $20 | |
| South Dakota | Dry | $290 | $275 | $15 | |
| Nebraska | Dry | $260 | $255 | $5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $260 | $250 | $10 | |
| Wet | $95 | $95 | $0 | ||
| Illinois | Dry | $235 | $225 | $10 | |
| Nebraska | Dry | $260 | $250 | $10 | |
| Wet | $95 | $95 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $220 | $220 | $0 | |
| Indiana | Dry | $215 | $215 | $0 | |
| Iowa | Dry | $230 | $230 | $0 | |
| Michigan | Dry | $220 | $220 | $0 | |
| Minnesota | Dry | $235 | $235 | $0 | |
| Nebraska | Dry | $250 | $250 | $0 | |
| New York | Dry | $240 | $240 | $0 | |
| North Dakota | Dry | $250 | $250 | $0 | |
| Ohio | Dry | $220 | $220 | $0 | |
| South Dakota | Dry | $245 | $245 | $0 | |
| Wisconsin | Dry | $215 | $215 | $0 | |
| Western Kansas | Dry | $290 | $285 | $5 | |
| Wet | $112 | $105 | $7 | ||
| Central Kansas | Dry | $275 | $255 | $20 | |
| Wet | $95 | $85 | $10 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $325 | $315 | $10 | |
| **Weekly Average: | $248 | $238 | $10 | ||
| (Prices listed per ton) | |||||
| **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 | 2/24/2022 | $6.9500 | $248.21 |
| Soybean Meal | 2/24/2022 | $464.90 | |
| DDG Weekly Average Spot Price | $248.00 | ||
| DDG Value Relative to: | 2/24 | 2/17 | |
| Corn | 99.91% | 102.52% | |
| Soybean Meal | 53.34% | 52.98% | |
| Cost Per Unit of Protein: | |||
| DDG | $9.19 | $8.81 | |
| Soybean Meal | $9.79 | $9.46 | |
| Notes: | |||
| Corn and soybean prices take from DTN Market Quotes. DDG price | |||
Mary Kennedy can be reached at mary.kennedy@dtn.com
Follow her on Twitter @MaryCKenn
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