Market Matters Blog
DTN Weekly Average DDG Price Steady
OMAHA (DTN) -- Of the 40 locations DTN contacted with spot offers for domestic distillers dried grains (DDG) for the week ended August 6, prices were at $128 per ton, unchanged on average versus the prior week.
The DTN National Corn Index was 4 cents lower versus one week ago, and the national average basis was unchanged, but DDG prices remained steady, on average, this week.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Aug. 6 was 115.15%, and the value of DDG relative to soybean meal was 45.60%. The cost per unit of protein for DDG was $4.74, compared to the cost per unit of protein for soybean meal at $5.91. Cash soybean meal prices have dropped $8 to $9 per ton versus one week ago.
In its weekly export DDGS update, the U.S. Grains Council said: "Offers for DDGS on the export market are mostly steady this week with barge CIF NOLA values down $3 per metric ton (mt) for September shipment and up $5/mt for October. FOB Gulf values are down $1/mt for spot shipment and up $3/mt for October as demand for fall positions is increasing. U.S. rail rates are slightly lower this week while asking prices for 40-foot containers to Southeast Asia are up $4-$7/mt. The average asking price for spot containers to Southeast Asia is $240/mt this week."
The Energy Information Administration said ethanol inventory in the U.S. edged higher in the final week of July as demand fell after two straight weekly gains, down 1.1%, while production backed off an 18-week high. Ethanol plant production fell 27,000 barrels per day (bpd) in the week profiled, a little more than half the increase the week prior. At 931,000 bpd, ethanol plant production was 10.5% lower than the corresponding week in 2019. Four-week average output is down 112,000 bpd against year ago at 932,000 bpd.
The U.S. Census Bureau said Wednesday that U.S. exports of DDGS totaled 883,193 mt in June, down from 601,029 mt in May and down 8% from a year ago. Thailand was the top destination in June, taking 24% of U.S. exports and were followed by Mexico and Vietnam. For the first six months of 2020, U.S. exports of DDGS were down 7% from a year ago.
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 | 8/6/2020 | 7/30/2020 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | (816 714 3413) | ||||
| Missouri | Dry | $140 | $138 | $2 | |
| Wet | $70 | $70 | $0 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri | Dry | $140 | $135 | $5 | |
| Wet | $70 | $70 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $140 | $140 | $0 | |
| Indiana | Dry | $130 | $130 | $0 | |
| Iowa | Dry | $120 | $120 | $0 | |
| Michigan | Dry | $130 | $130 | $0 | |
| Minnesota | Dry | $115 | $115 | $0 | |
| North Dakota | Dry | $115 | $115 | $0 | |
| New York | Dry | $135 | $135 | $0 | |
| South Dakota | Dry | $105 | $105 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $130 | $125 | $5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $140 | $140 | $0 | |
| Iowa | Dry | $120 | $120 | $0 | |
| Michigan | Dry | $130 | $130 | $0 | |
| Minnesota | Dry | $120 | $120 | $0 | |
| Missouri | Dry | $145 | $145 | $0 | |
| Ohio | Dry | $140 | $140 | $0 | |
| South Dakota | Dry | $123 | $125 | -$2 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $130 | $130 | $0 | |
| Wet | $40 | $40 | $0 | ||
| Illinois | Dry | $140 | $140 | $0 | |
| Nebraska | Dry | $130 | $130 | $0 | |
| Wet | $40 | $40 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $135 | $135 | $0 | |
| Indiana | Dry | $135 | $135 | $0 | |
| Iowa | Dry | $120 | $120 | $0 | |
| Michigan | Dry | $130 | $130 | $0 | |
| Minnesota | Dry | $120 | $120 | $0 | |
| Nebraska | Dry | $115 | $115 | $0 | |
| New York | Dry | $150 | $150 | $0 | |
| North Dakota | Dry | $115 | $115 | $0 | |
| Ohio | Dry | $135 | $135 | $0 | |
| South Dakota | Dry | $105 | $105 | $0 | |
| Wisconsin | Dry | $130 | $130 | $0 | |
| Valero Energy Corp, San Antonio Texas | |||||
| Indiana | Dry | $147 | $153 | -$6 | |
| Iowa | Dry | $0 | $0 | $0 | |
| Minnesota | Dry | $0 | $0 | $0 | |
| Nebraska | Dry | $0 | $0 | $0 | |
| Ohio | Dry | $137 | $143 | -$6 | |
| South Dakota | Dry | $0 | $0 | $0 | |
| California | Dry | $0 | $0 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $200 | $201 | -$1 | |
| *Prices listed per ton. | |||||
| Weekly Average | $128 | $128 | $0 | ||
| 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 | 8/6/2020 | $3.1125 | $111.16 |
| Soybean Meal | 8/6/2020 | $280.70 | |
| DDG Weekly Average Spot Price | $128.00 | ||
| DDG Value Relative to: | 8/6 | 7/30 | |
| Corn | 115.15% | 113.51% | |
| Soybean Meal | 45.60% | 44.17% | |
| Cost Per Unit of Protein: | |||
| DDG | $4.74 | $4.74 | |
| Soybean Meal | $5.91 | $6.10 | |
| Notes: | |||
| Corn and soybean prices take 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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