Market Matters Blog

DTN Weekly DDG Price Slightly 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 July 6 was down $1 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 July 6 was $202 per ton, down $1 on average from one week ago. With plant production still on the rise, there is plenty of DDG/DDGS around in a tight-demand domestic and export market.

The Energy Information Administration (EIA) at midweek showed overall ethanol production in the United States averaged 1.06 million barrels per day (bpd) as of June 30, up 8,000 bpd week-on-week and 16,000 bpd, or 1.5% higher, than the same week last year. Four-week average output at 1.045 million bpd was 8,000 bpd below the same four weeks in 2022.Midwest ethanol production averaged 999,000 bpd, up 8,000 bpd week-on-week and 13,000 bpd, or 1.3% higher than in the same week last year. Four-week average output at 985,000 bpd was 8,000 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 July 6 was 1%. The value of DDG relative to soybean meal was 48.6 and the cost per unit of protein for DDG was $7.48 compared to the cost per unit of protein for soybean meal at $8.75. (FYI: Table below and values still based on July futures.)

In its weekly DDGS export update, the U.S. Grains Council said: "Barge CIF NOLA DDGS offers are $14 metric ton (mt) lower this week as barge freight weakens and offers for product destined for the river system continue to ease lower. FOB NOLA offers are $6 to $9 mt lower while U.S. rail rates are steady to $2 lower. Offers for 40-foot containers to Southeast Asia are down $5 mt at $310 for July shipment and are down just $2 to $3 mt for August-October positions."

USDA reported this week that U.S. exports of DDGS totaled 958,385 mt in May, up from 777,617 mt in April, but down 1% from a year ago. Mexico was the top destination in May, taking 17% of U.S. exports and was followed by Turkey and South Korea. In the first five months of 2023, exports of DDGS were down 11% 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 7/6/2023 6/29/2023
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $210 $215 -$5
Wet $125 $125 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $210 $225 -$15
Wet $100 $110 -$10
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $195 $195 $0
Indiana Dry $195 $195 $0
Iowa Dry $195 $200 -$5
Michigan Dry $190 $190 $0
Minnesota Dry $195 $195 $0
New York Dry $215 $215 $0
South Dakota Dry $200 $200 $0
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $198 $200 -$2
Wet $70 $72 -$2
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $235 $235 $0
Iowa Dry $220 $220 $0
Michigan Dry $230 $230 $0
Minnesota Dry $210 $210 $0
Missouri Dry $240 $240 $0
Ohio Dry $230 $230 $0
South Dakota Dry $220 $220 $0
Nebraska Dry $230 $230 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $245 $245 $0
Wet* $100 $100 $0
Ill SOLD OUT JULY Dry $0 $0 $0
Nebraska Dry $245 $245 $0
Wet* $100 $100 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $200 $200 $0
Indiana Dry $190 $190 $0
Iowa Dry $195 $195 $0
Michigan Dry $205 $205 $0
Minnesota Dry $190 $195 -$5
Nebraska Dry $195 $200 -$5
New York Dry $240 $240 $0
North Dakota Dry $180 $180 $0
Ohio Dry $205 $205 $0
South Dakota Dry $188 $182 $6
Wisconsin Dry $195 $195 $0
Fox River Valley Ethanol, Oshkosh WI 715-709-0269
Dry $190 $190 $0
Western Kansas Dry $235 $235 $0
Wet $87 $87 $0
**Weekly Average: $202 $203 -$1
(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 7/6/2023 $5.6675 $202.4107
Soybean Meal 7/6/2023 $415.60
DDG Weekly Average Spot Price 7/6/2023 $202.00
DDG Value Relative to: 7/6 6/29
Corn 1.00% 0.98%
Soybean Meal 48.60% 50.37%
Cost Per Unit of Protein:
DDG $7.48 $7.52
Soybean Meal $8.75 $8.48
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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