Market Matters Blog

DTN Weekly DDG Average Price Moves Lower

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 23 was $4 lower on average than one week ago. (DTN file photo)

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 35 locations reporting for the week ended March 23 was $257 per ton, down $4 from one week ago. Prices were mixed and mostly lower, with the average lower as well. The falling soybean meal prices pressured DDG this week as the cash corn price was mostly unchanged since last week.

The Energy Information Administration (EIA) at midweek showed EIA reports overall ethanol production in the United States dropped 17,000 barrels per day (bpd) to 997,000 bpd, the lowest level since the first week of January and only the second time this year below 1 million bpd. Versus a year ago, output was down 4.3% while data show four-week average output at 1.006 million bpd was 17,000 bpd lower than the same four weeks in 2022. Midwest PADD 2 ethanol production fell 12,000 bpd in the week to 954,000 bpd, 3.4% below a year ago.

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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended March 23 was 1.14%. The value of DDG relative to soybean meal was 58.64%, and the cost per unit of protein for DDG was $9.52 compared to the cost per unit of protein for soybean meal at $9.23.

In its weekly DDGS export update, the U.S. Grains Council said: "Barge CIF NOLA offers are steady for spot positions and $2 metric ton (mt) lower for May and June as strong barge freight offset the impacts of lower truck and rail offers. FOB NOLA offers are $7 to $10 mt lower for Q2 positions and average $339 mt for April. This week's offers for 40-foot containers to Southeast Asia are $2 to $3 mt higher and average $397 for Q2 shipment."

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 3/23/2023 3/16/2023
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $285 $275 $10
Wet $165 $165 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $265 $285 -$20
Wet $150 $155 -$5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $245 $250 -$5
Indiana Dry $245 $245 $0
Iowa Dry $250 $250 $0
Michigan Dry $242 $245 -$3
Minnesota Dry $240 $250 -$10
New York Dry $270 $270 $0
South Dakota Dry $250 $255 -$5
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $255 $262 -$7
Wet $95 $92 $3
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $265 $270 -$5
Iowa Dry $265 $270 -$5
Michigan Dry $260 $270 -$10
Minnesota Dry $265 $270 -$5
Missouri Dry $275 $278 -$3
Ohio Dry $260 $265 -$5
South Dakota Dry $270 $275 -$5
Nebraska Dry $275 $280 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $285 $285 $0
Wet* $120 $120 $0
Illinois OUT APRIL Dry $250 $255 -$5
Nebraska Dry $285 $285 $0
Wet* $120 $120 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $250 $250 $0
Indiana Dry $245 $245 $0
Iowa Dry $240 $240 $0
Michigan Dry $250 $250 $0
Minnesota Dry $240 $250 -$10
Nebraska Dry $265 $275 -$10
New York Dry $280 $280 $0
North Dakota Dry $260 $260 $0
Ohio Dry $250 $255 -$5
South Dakota Dry $255 $255 $0
Wisconsin Dry $245 $245 $0
Fox River Valley Ethanol, Oshkosh WI 715-709-0269
Dry $235 $235 $0
Western Kansas Dry $265 $265 $0
Wet $100 $100 $0
**Weekly Average: $257 $261 -$4
(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 3/23/2023 $6.3175 $225.6250
Soybean Meal 3/23/2023 $438.30
DDG Weekly Average Spot Price 3/23/2023 $257.00
DDG Value Relative to: 3/23 3/16
Corn 1.14% 1.15%
Soybean Meal 58.64% 55.06%
Cost Per Unit of Protein:
DDG $9.52 $9.67
Soybean Meal $9.23 $9.98
Notes:
Corn and soybean prices taken 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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