Market Matters Blog

Weekly DTN Average DDG Price Surges Versus Two Weeks Ago

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's weekly spot price for domestic distillers dried grains for the week ended March 10 was up $34 on average versus two weeks ago. (DTN file photo)

OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended March 10 was $282 per ton, up $34 per ton versus the Feb. 24 price update.

DDG prices continue their rise in 2022 as cash corn prices have surged due to the ongoing war in Ukraine. Soybean meal prices have also climbed, giving support to the DDG prices as feeders scramble to buy feed, as some states reported tight supplies. While availability of trucks has been tight for some time, the higher diesel prices on top of that have added to the DDG price strength.

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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, March 10, was 104.20%. The value of DDG relative to soybean meal was 55.64%, and the cost per unit of protein for DDG was $10.44, compared to the cost per unit of protein for soybean meal at $10.67.

The Energy Information Administration reported midmorning Thursday that domestic ethanol production rebounded in the first week of March, moving back above the 1 million-barrel-per-day (bpd) level with stocks also recouping a good portion of the week prior's drop with a build of more than 325,000 barrels (bbl) through March 4. EIA data showed overall ethanol production rose 31,000 bpd to a five-week high 1.028 million bpd, about 10% more than the comparable week of March 2021. Four-week average output totaled 1.015 million bpd compared with 839,000 bpd reported in the same four-week period of 2021.

In its weekly DDGS update, the U.S. Grains Council said, "Energy costs are supporting interior truck values and railroad fuel surcharges and rail-delivered DDGS are up $20-$34 per metric ton (mt) from last week. Barge CIF NOLA DDGS prices are up $60-$65/mt this week and FOB Gulf offers are equally higher, averaging $411/mt for April. As was the case last week, there are a wide range of indications in the market and Thursday's indications hold a premium to early week offers. Containerized DDGS to Southeast Asia are still trading slowly amid large increases in DDGS prices and ocean freight values. Offers up $3/$4mt this week, with the average Q2 price for 40-foot containers to Southeast Asia reaching $451/mt."

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 3/10/2022 2/24/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $300 $265 $35
Wet $160 $145 $15
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $300 $280 $20
Wet $170 $160 $10
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $290 $240 $50
Indiana Dry $280 $240 $40
Iowa Dry $270 $245 $25
Michigan Dry $260 $235 $25
Minnesota Dry $275 $250 $25
New York Dry $305 $270 $35
South Dakota Dry $290 $260 $30
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $290 $255 $35
Wet $95 $86 $9
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $285 $240 $45
Iowa Dry $290 $280 $10
Michigan Dry $270 $245 $25
Minnesota Dry $285 $270 $15
Missouri Dry $300 $285 $15
Ohio Dry $285 $240 $45
South Dakota Dry $300 $290 $10
Nebraska Dry $310 $260 $50
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $285 $260 $25
Wet $105 $95 $10
Illinois Dry $280 $235 $45
Nebraska Dry $285 $260 $25
Wet $105 $95 $10
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $275 $220 $55
Indiana Dry $265 $215 $50
Iowa Dry $265 $230 $35
Michigan Dry $260 $220 $40
Minnesota Dry $270 $235 $35
Nebraska Dry $305 $250 $55
New York Dry $305 $240 $65
North Dakota Dry $285 $250 $35
Ohio Dry $275 $220 $55
South Dakota Dry $280 $245 $35
Wisconsin Dry $260 $215 $45
Western Kansas Dry $310 $290 $20
Wet $118 $112 $6
Central Kansas Dry $0
Wet $0
Western Milling, Goshen, California (559-302-1074)
California Dry $358 $325 $33
**Weekly Average: $282 $248 $34
(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 3/10/2022 $7.5775 $270.63
Soybean Meal 3/10/2022 $506.80
DDG Weekly Average Spot Price $282.00
DDG Value Relative to: 3/10 2/24
Corn 104.20% 99.91%
Soybean Meal 55.64% 53.34%
Cost Per Unit of Protein:
DDG $10.44 $9.19
Soybean Meal $10.67 $9.79
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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