Market Matters Blog

DTN Weekly DDG Price Lower Again 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 8 was down $10 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 8 was $207 per ton, down $10 on average from one week ago. The rise in ethanol production again last week is keeping plants well supplied with DDG, adding pressure to spot prices.

The Energy Information Administration (EIA) at midweek showed overall ethanol production in the United States averaged 1.036 million barrels per day (bpd) as of June 2, up 32,000 bpd week-on-week and 3,000 bpd, or 0.3%, lower than in the same week last year. Four-week average output at 1.002 million bpd was 27,000 bpd below the same four weeks in 2022. Midwest ethanol production averaged 981,000 bpd, up 32,000 bpd week-on-week and 4,000 bpd, or 0.4%, lower than in the same week last year. Four-week average output at 948,000 bpd was 24,000 bpd below the same four weeks in 2022.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended June 8 was 0.95%. The value of DDG relative to soybean meal was 51.24 and the cost per unit of protein for DDG was $7.67 compared to the cost per unit of protein for soybean meal at $8.51.

In its weekly DDGS export update, the U.S. Grains Council said: "Barge CIF NOLA values dropped again this week with offers for July falling $8 metric ton (mt) while FOB NOLA offers are down $6 for July. U.S. rail rates are down significantly this week for product delivered to the PNW and California where a port strike is occurring. Offers for 40-foot containers to Southeast Asia are down an average of $21. The smallest reductions have been for the KC railyard and Elwood railyards."

U.S. exports of DDGS totaled 777,617 mt in April, down from 898,086 mt in March and down 4% from a year ago, according to USDA. Mexico was the top destination in April, taking 20% of U.S. exports and was followed by South Korea and Indonesia. In the first four months of 2023, exports of DDGS were down 13% from a year ago.

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 6/8/2023 6/1/2023
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $235 $245 -$10
Wet $140 $150 -$10
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $215 $225 -$10
Wet $115 $115 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $200 $208 -$8
Indiana Dry $200 $200 $0
Iowa Dry $200 $210 -$10
Michigan Dry $185 $200 -$15
Minnesota Dry $195 $205 -$10
New York Dry $225 $225 $0
South Dakota Dry $205 $215 -$10
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $216 $220 -$4
Wet $60 $75 -$15
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $235 $235 $0
Iowa Dry $230 $235 -$5
Michigan Dry $230 $230 $0
Minnesota Dry $225 $230 -$5
Missouri Dry $245 $245 $0
Ohio Dry $230 $230 $0
South Dakota Dry $240 $240 $0
Nebraska Dry $250 $250 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $255 $265 -$10
Wet* $105 $115 -$10
Ill SOLD OUT JUNE Dry $0 $0 $0
Nebraska Dry $255 $265 -$10
Wet* $105 $115 -$10
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $190 $215 -$25
Indiana Dry $195 $210 -$15
Iowa Dry $185 $200 -$15
Michigan Dry $200 $215 -$15
Minnesota Dry $195 $200 -$5
Nebraska Dry $202 $235 -$33
New York Dry $240 $260 -$20
North Dakota Dry $195 $210 -$15
Ohio Dry $202 $225 -$23
South Dakota Dry $195 $210 -$15
Wisconsin Dry $190 $200 -$10
Fox River Valley Ethanol, Oshkosh WI 715-709-0269
Dry $195 $200 -$5
Western Kansas Dry $245 $255 -$10
Wet $90 $90 $0
**Weekly Average: $207 $217 -$10
(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 6/8/2023 $6.1025 $217.9465
Soybean Meal 6/8/2023 $404.00
DDG Weekly Average Spot Price 6/8/2023 $207.00
DDG Value Relative to: 6/8 6/1
Corn 0.95% 1.03%
Soybean Meal 51.24% 54.06%
Cost Per Unit of Protein:
DDG $7.67 $8.04
Soybean Meal $8.51 $8.45
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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