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 for the week ended July 21 was $2 higher on average versus one week ago. (DTN file photo)

OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended July 21 was $225 per ton, up $2 on average versus one week ago. Prices were mixed but higher on average as demand has picked up some and, while production levels were up last week, some plants have tight DDG supplies.

The Energy Information Administration (EIA) said Wednesday that production at domestic ethanol plants moved off an eight-week low with the first increase in five weeks. EIA showed total output up 29,000 barrels per day (bpd) to 1.034 million bpd, 0.6% higher than the same week in 2021. Ethanol plant output averaged 1.033 million bpd during the four weeks ended July 15, down 15,000 bpd versus the same four weeks a year earlier.

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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended July 21 was 1.09%. The value of DDG relative to soybean meal was 51.80%, and the cost per unit of protein for DDG was $8.33, compared to the cost per unit of protein for soybean meal at $9.15. DTN's estimates moved to utilizing September futures since July has gone off the board.

In its weekly DDGS export update, the U.S. Grains Council said: "On the export market, barge availability is increasing, which pushed barge CIF NOLA offers lower this week with spot positions trading below $300 metric ton (mt). FOB Gulf offers are down $20/mt for August but are finding better strength in September and further deferred positions. U.S. rail rates are steady/$2 higher this week as the domestic market tightens. Offers for 40-foot containers to Southeast Asia are down $1 to $2/mt this week as freight values continue to slip lower."

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 7/21/2022 7/14/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $245 $240 $5
Wet $145 $140 $5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $240 $250 -$10
Wet $115 $125 -$10
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $220 $220 $0
Indiana Dry $215 $220 -$5
Iowa Dry $215 $218 -$3
Michigan Dry $220 $240 -$20
Minnesota Dry $195 $185 $10
New York Dry $190 $200 -$10
South Dakota Dry $210 $210 $0
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $230 $225 $5
Wet $70 $65 $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $240 $246 -$6
Iowa Dry $235 $225 $10
Michigan Dry $235 $235 $0
Minnesota Dry $235 $225 $10
Missouri Dry $275 $265 $10
Ohio Dry $240 $245 -$5
South Dakota Dry $245 $230 $15
Nebraska Dry $245 $230 $15
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $230 $230 $0
Wet $90 $90 $0
Illinois Dry $220 $230 -$10
Nebraska Dry $220 $220 $0
Wet $90 $90 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $219 $215 $4
Indiana Dry $220 $215 $5
Iowa Dry $195 $190 $5
Michigan Dry $225 $220 $5
Minnesota Dry $200 $190 $10
Nebraska Dry $230 $220 $10
New York Dry $235 $230 $5
North Dakota Dry $215 $210 $5
Ohio Dry $220 $215 $5
South Dakota Dry $215 $210 $5
Wisconsin Dry $215 $210 $5
Western Kansas Dry $255 $265 -$10
Wet $105 $110 -$5
Western Milling, Goshen, California (559-302-1074)
California Dry $330 $330 $0
**Weekly Average: $225 $223 $2
(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 7/21/2022 $5.7575 $205.63
Soybean Meal 7/21/2022 $434.40
DDG Weekly Average Spot Price $225.00
DDG Value Relative to: 7/21 7/14
Corn 1.09% 1.03%
Soybean Meal 51.80% 50.81%
Cost Per Unit of Protein:
DDG $8.33 $8.26
Soybean Meal $9.15 $9.24
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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