Market Matters Blog
DTN Weekly Average DDG Price Stronger
OMAHA (DTN) -- The average price for domestic distillers dried grains (DDG) from the 40 locations DTN contacted with spot offers for the week ended Aug. 19 was $135 per ton, $4 higher than the prior week.
DDG prices climbed higher again this week as sellers note there is tightening of supply in some areas. The power outage in Iowa from the recent derecho left some plants unable to run and some plants are heading into seasonal fall downtime as well. Some sellers told DTN they are either booked in full for August or are getting close to being booked.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Aug. 19 was 116.31% and the value of DDG relative to soybean meal was 45.65%. The cost per unit of protein for DDG was $5.00, compared to the cost per unit of protein for soybean meal at $6.23.
The Energy Information Administration noted that for the week ended Aug. 14, ethanol inventory in the United States moved off a better than 3-1/2 year low, up 3% in the week ended Aug. 14 as demand was little changed and production increased for the first time in three weeks, climbing about 1%. Ethanol plant production rose for the first time in three weeks, up 8,000 barrels per day (bpd) to 926,000 bpd, which is 9.5% lower than the corresponding week in 2019. Four-week average output is down 102,000 bpd against a year ago at 933,000 bpd.
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 | 8/19/2020 | 8/13/2020 | ||
| Bartlett and Company, Kansas City, MO | (816 714 3413) | ||||
| Missouri | Dry | $152 | $145 | $7 | |
| Wet | $76 | $73 | $3 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri Subject | Dry | $150 | $150 | $0 | |
| Wet | $75 | $75 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $145 | $140 | $5 | |
| Indiana | Dry | $140 | $130 | $10 | |
| Iowa | Dry | $130 | $120 | $10 | |
| Michigan | Dry | $135 | $130 | $5 | |
| Minnesota | Dry | $125 | $120 | $5 | |
| North Dakota | Dry | $120 | $115 | $5 | |
| New York | Dry | $145 | $135 | $10 | |
| South Dakota | Dry | $110 | $105 | $5 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $140 | $130 | $10 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $145 | $140 | $5 | |
| Iowa | Dry | $125 | $122 | $3 | |
| Michigan | Dry | $135 | $130 | $5 | |
| Minnesota | Dry | $126 | $120 | $6 | |
| Missouri | Dry | $155 | $145 | $10 | |
| Ohio | Dry | $145 | $140 | $5 | |
| South Dakota | Dry | $126 | $123 | $3 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $130 | $130 | $0 | |
| Wet | $40 | $40 | $0 | ||
| Illinois SEPT | Dry | $150 | $150 | $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 | $125 | $125 | $0 | |
| Michigan | Dry | $130 | $130 | $0 | |
| Minnesota | Dry | $125 | $125 | $0 | |
| Nebraska | Dry | $130 | $130 | $0 | |
| New York | Dry | $150 | $150 | $0 | |
| North Dakota | Dry | $120 | $120 | $0 | |
| Ohio | Dry | $140 | $140 | $0 | |
| South Dakota | Dry | $110 | $110 | $0 | |
| Wisconsin | Dry | $135 | $135 | $0 | |
| Valero Energy Corp, San Antonio Texas | |||||
| Indiana | Dry | $158 | $147 | $11 | |
| Iowa | Dry | $0 | $0 | $0 | |
| Minnesota | Dry | $0 | $0 | $0 | |
| Nebraska | Dry | $0 | $0 | $0 | |
| Ohio | Dry | $147 | $137 | $10 | |
| South Dakota | Dry | $0 | $0 | $0 | |
| California | Dry | $0 | $0 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $208 | $201 | $7 | |
| *Prices listed per ton. | |||||
| Weekly Average | $135 | $131 | $4 | ||
| 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 | 8/19/2020 | $3.2500 | $116.07 |
| Soybean Meal | 8/19/2020 | $295.70 | |
| DDG Weekly Average Spot Price | $135.00 | ||
| DDG Value Relative to: | 8/19 | 8/6 | |
| Corn | 116.31% | 112.77% | |
| Soybean Meal | 45.65% | 45.16% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.00 | $4.85 | |
| Soybean Meal | $6.23 | $6.11 | |
| 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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