Market Matters Blog
DTN Weekly DDG Price Continues Lower on Average
MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended Oct. 27 was $244 per ton, down $5 on average versus one week ago. DDG supplies continue to grow as plant production increased again last week and shipping problems on the Mississippi River due to low water causing barge groundings have put pressure on nearby domestic DDG and export DDGS prices as well.
The latest river update shows two incidents on the lower Mississippi River overnight Oct. 27 causing slowdowns and delays. Dredge Jadwin began working at LMR M590 the afternoon of Oct. 27, closing the channel for 36 hours. At LMR M695, Dredge Hurley will start working at noon on Oct. 28, closing the channel for 24 hours.
The Energy Information Administration (EIA) Wednesday noted ethanol production in the United States rose for a fourth consecutive week through Oct. 21, up nearly 2% to a 12-week high. Domestic ethanol production rose 17,000 barrels per day (bpd) to 1.022 million bpd as of Oct. 21, the highest output rate since the final week of July yet 6.6% below the same time in 2021. The four-week average production at 967,000 bpd was 86,000 bpd lower than the corresponding four weeks last year. Midwest ethanol production also rose for a fourth straight week, up 13,000 bpd or 1.4% to 974,000 bpd, the highest rate of plant output since the last week of July.
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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Oct. 20 was 1.00%. The value of DDG relative to soybean meal was 58.74%, and the cost per unit of protein for DDG was $9.04 compared to the cost per unit of protein for soybean meal at $8.75.
In its weekly DDGS export update, the U.S. Grains Council said: "On the export market, Barge CIF NOLA prices are $11 higher for November shipment, erasing all of last week's declines as barge rates rally again. Offers for DDGS on barges for December and January are up $7 and $4 metric ton (mt), respectively. FOB NOLA offers are up $9 for November at $345/mt for 35% pro-fat and near $335-330/mt for 34% pro-fat. Offers for 40-foot containers to Asia are up $10 to $15 at $407/mt this 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 | 10/27/2022 | 10/20/2022 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $280 | $285 | -$5 | |
| Wet | $155 | $160 | -$5 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Dry | $280 | $280 | $0 | ||
| Wet | $150 | $150 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $230 | $235 | -$5 | |
| Indiana | Dry | $210 | $210 | $0 | |
| Iowa | Dry | $235 | $240 | -$5 | |
| Michigan | Dry | $220 | $220 | $0 | |
| Minnesota | Dry | $220 | $235 | -$15 | |
| New York | Dry | $265 | $255 | $10 | |
| South Dakota | Dry | $255 | $255 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302) | |||||
| Dry | $285 | $285 | $0 | ||
| Wet | $101 | $101 | $0 | ||
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $235 | $240 | -$5 | |
| Iowa SUBJECT | Dry | $250 | $270 | -$20 | |
| Michigan | Dry | $240 | $240 | $0 | |
| Minnesota SUBJECT | Dry | $240 | $270 | -$30 | |
| Missouri SUBJECT | Dry | $250 | $270 | -$20 | |
| Ohio | Dry | $235 | $240 | -$5 | |
| South Dakota SUBJ. | Dry | $255 | $280 | -$25 | |
| Nebraska | Dry | $280 | $280 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $290 | $290 | $0 | |
| Call for Available | Wet* | $0 | $0 | $0 | |
| Illinois | Dry | $235 | $235 | $0 | |
| Nebraska | Dry | $290 | $290 | $0 | |
| Call for Available | Wet* | $0 | $0 | $0 | |
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $220 | $220 | $0 | |
| Indiana | Dry | $210 | $215 | -$5 | |
| Iowa | Dry | $225 | $225 | $0 | |
| Michigan | Dry | $220 | $220 | $0 | |
| Minnesota | Dry | $220 | $225 | -$5 | |
| Nebraska | Dry | $260 | $265 | -$5 | |
| New York | Dry | $250 | $250 | $0 | |
| North Dakota | Dry | $250 | $250 | $0 | |
| Ohio | Dry | $225 | $225 | $0 | |
| South Dakota | Dry | $250 | $250 | $0 | |
| Wisconsin | Dry | $215 | $215 | $0 | |
| Western Kansas | Dry | $250 | $270 | -$20 | |
| Wet | $110 | $110 | $0 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $348 | $340 | -$4 | |
| **Weekly Average: | $244 | $249 | -$5 | ||
| (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 | 10/27/2022 | $6.8225 | $243.6607 |
| Soybean Meal | 10/27/2022 | $415.40 | |
| DDG Weekly Average Spot Price | $244.00 | ||
| DDG Value Relative to: | 10/27/2022 | 10/20/2022 | |
| Corn | 1.00% | 1.02% | |
| Soybean Meal | 58.74% | 60.25% | |
| Cost Per Unit of Protein: | |||
| DDG | $9.04 | $9.22 | |
| Soybean Meal | $8.75 | $8.70 | |
| 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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