Market Matters Blog

DTN Weekly DDG Price Lower 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 June 1 was down $4 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 June 1 was $217 per ton, down $4 on average from one week ago. Demand has slowed and is pressuring spot prices, and weakness in soybean meal is also adding pressure. An uptick in plant production is keeping the supply chain full as well.

The Energy Information Administration (EIA) at midweek showed domestic plant production topped 1 million barrels per day (bpd) for the first time in six weeks while blending demand slipped, delayed Energy Information Administration data released Thursday shows. U.S. ethanol output increased 21,000 bpd or 2.1% to 1.004 million bpd in the lead-up to the Memorial Day weekend after five weeks of production holding below 1 million bpd amid seasonal plant maintenance. Plant production was a sizable 67,000 bpd or 6.3% below the comparable week a year ago, EIA data shows.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended June 1 was 1.03%. The value of DDG relative to soybean meal was 54.06 and the cost per unit of protein for DDG was $8.04 compared to the cost per unit of protein for soybean meal at $8.45.

In its weekly DDGS export update, the U.S. Grains Council said: "Barge CIF NOLA values dropped again this week with offers for June falling $10 per metric ton (mt) to $261 while FOB NOLA offers are down $5 for June at $271/mt. U.S. rail rates are down $4/mt this week with offers for product delivered to the PNW, California, and Laredo, Texas, steady/firmer while KC railyard and Elwood, Illinois, railyard offers are down $8-$12/mt. Offers for 40-foot containers to southeast Asia are down $11/mt this week at $349 amid steady/lower freight rates and increasingly competitive DDGS values."

NOTE: All prices listed below can change at any time and are subject to confirmation from sellers.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 6/1/2023 5/25/2023
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $245 $245 $0
Wet $150 $150 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $225 $245 -$20
Wet $115 $125 -$10
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $208 $210 -$2
Indiana Dry $200 $210 -$10
Iowa Dry $210 $218 -$8
Michigan Dry $200 $205 -$5
Minnesota Dry $205 $210 -$5
New York Dry $225 $235 -$10
South Dakota Dry $215 $220 -$5
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $220 $228 -$8
Wet $75 $80 -$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $235 $245 -$10
Iowa Dry $235 $240 -$5
Michigan Dry $230 $250 -$20
Minnesota Dry $230 $240 -$10
Missouri Dry $245 $245 $0
Ohio Dry $230 $240 -$10
South Dakota Dry $240 $245 -$5
Nebraska Dry $250 $255 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $265 $275 -$10
Wet* $115 $115 $0
Ill SOLD OUT JUNE Dry $0 $0 $0
Nebraska Dry $265 $275 -$10
Wet* $115 $115 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $215 $215 $0
Indiana Dry $210 $210 $0
Iowa Dry $200 $200 $0
Michigan Dry $215 $215 $0
Minnesota Dry $200 $200 $0
Nebraska Dry $235 $235 $0
New York Dry $260 $260 $0
North Dakota Dry $210 $210 $0
Ohio Dry $225 $225 $0
South Dakota Dry $210 $210 $0
Wisconsin Dry $200 $200 $0
Fox River Valley Ethanol, Oshkosh WI 715-709-0269
Dry $200 $205 -$5
Western Kansas Dry $255 $260 -$5
Wet $90 $100 -$10
**Weekly Average: $217 $221 -$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 6/1/2023 $5.9250 $211.6072
Soybean Meal 6/1/2023 $401.40
DDG Weekly Average Spot Price 6/1/2023 $217.00
DDG Value Relative to: 6/1 5/25
Corn 1.03% 1.05%
Soybean Meal 54.06% 55.64%
Cost Per Unit of Protein:
DDG $8.04 $8.19
Soybean Meal $8.45 $8.36
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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