Market Matters Blog

DTN Weekly Average DDG Price Tumbles

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 May 18 was down $14 on average from one week ago. (DTN file photo)

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended May 18 was $228 per ton, down $14 from one week ago. Prices have been on a steady decline as the cash price of corn has been dropping. The DTN National Corn Index is down 40 cents versus one week ago. An uptick in ethanol plant production also weighed on prices as supplies have increased.

The Energy Information Administration (EIA) at midweek showed overall ethanol production in the U.S. averaged 987,000 barrels per day (bpd), up 22,000 bpd through May 12 -- 4,000 bpd or 0.4% lower than in the same week last year. The four-week average output at 974,000 bpd was 4,000 bpd below the same four weeks in 2022. Midwest ethanol production averaged 932,000 bpd, up 20,000 bpd week on week and 1,000 bpd or 0.1% higher than in the same week last year. Four-week average output at 921,000 bpd was 1,000 bpd below the same four weeks in 2022.

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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended May 18 was 1.15%. The value of DDG relative to soybean meal was 55.06 and the cost per unit of protein for DDG was $8.44 compared to the cost per unit of protein for soybean meal at $8.72.

In its weekly DDGS export update, the U.S. Grains Council said: "Barge CIF NOLA values dropped this week with offers for June falling $12 metric ton (mt) to $275 while FOB NOLA offers are down $10 for June at $284 mt. Offers for 40-foot containers to southeast Asia are down $6 mt at $366 with weaker freight prices and DDGS values keeping product competitive on international markets."

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 5/18/2023 5/11/2023
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $243 $245 -$2
Wet $148 $150 -$2
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $245 $245 $0
Wet $135 $135 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $215 $220 -$5
Indiana Dry $220 $230 -$10
Iowa Dry $220 $230 -$10
Michigan Dry $230 $240 -$10
Minnesota Dry $215 $220 -$5
New York Dry $255 $270 -$15
South Dakota Dry $215 $235 -$20
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $232 $238 -$6
Wet $80 $90 -$10
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $255 $255 $0
Iowa Dry $250 $255 -$5
Michigan Dry $260 $260 $0
Minnesota Dry $245 $250 -$5
Missouri Dry $255 $265 -$10
Ohio Dry $250 $250 $0
South Dakota Dry $250 $250 $0
Nebraska Dry $260 $265 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $275 $275 $0
Wet* $115 $115 $0
Ill SOLD OUT JUNE Dry $0 $0 $0
Nebraska Dry $275 $275 $0
Wet* $115 $115 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $225 $235 -$10
Indiana Dry $220 $230 -$10
Iowa Dry $210 $225 -$15
Michigan Dry $225 $235 -$10
Minnesota Dry $215 $230 -$15
Nebraska Dry $245 $250 -$5
New York Dry $270 $270 $0
North Dakota Dry $220 $230 -$10
Ohio Dry $230 $240 -$10
South Dakota Dry $225 $230 -$5
Wisconsin Dry $205 $210 -$5
Fox River Valley Ethanol, Oshkosh WI 715-709-0269
Dry $215 $230 -$15
Western Kansas Dry $260 $265 -$5
Wet $100 $100 $0
**Weekly Average: $228 $242 -$14
(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 5/18/2023 $5.5525 $198.3036
Soybean Meal 5/18/2023 $414.10
DDG Weekly Average Spot Price 5/18/2023 $228.00
DDG Value Relative to: 5/18 5/11
Corn 1.15% 1.07%
Soybean Meal 55.06% 56.73%
Cost Per Unit of Protein:
DDG $8.44 $8.96
Soybean Meal $8.72 $8.98
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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