Market Matters Blog
DTN Weekly Average DDG Price Continues Higher
OMAHA (DTN) -- The average price for domestic distillers dried grains (DDG) from the 40 locations DTN contacted with spot offers for the week ended Sept. 17 was $151 per ton, up $7 on average from the prior week. DDG prices pushed higher for the week as cash corn prices strengthened; supplies are tight in some spots as demand remains firm, according to merchandisers. The DTN National Corn Index on Sept. 17 was 11 cents higher versus one week ago.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Sept. 17 was 112.67%, above the 5-year average of 109%. The value of DDG relative to soybean meal was 45.70% and is near the 3-year average. The cost per unit of protein for DDG was $5.59, compared to the cost per unit of protein for soybean meal at $6.96.
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In their weekly export DDGS report, the U.S. Grains Council said, "Exporters report strong Q4 demand from international buyers. Barge CIF NOLA offers are $4 to $5 per metric tons (mt) higher this week while FOB Gulf offers are up $6 to $8/mt at $225 for October shipment. U.S. rail rates are steady/higher, averaging a $2/mt gain from the prior week. Offers for 40-foot containers to Southeast Asia are up $7 to $8/mt as demand from that region enters a period of seasonal strength. Containers are offered at $252/mt for October shipment."
The Energy Information Administration reported ethanol inventory during the week ended Sept. 11 in the Midwest PADD 2 declined, falling 5.9% to bring total domestic supplies down as demand recovered and production moved off a 6-week high. Blending activity, a measure of demand, rebounded from an 8-week low, up 15,000 barrels per day (bpd), which was about 7% below the same week in 2019. Ethanol plant production continued to seesaw, falling 15,000 bpd in the week ended Sept. 11, 8% lower than the corresponding week in 2019. Four-week average output is down 89,000 bpd against year ago at 930,000 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 | 9/17/2020 | 9/10/2020 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $160 | $158 | $2 | |
| Wet | $80 | $79 | $1 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri Subject | Dry | $160 | $155 | $5 | |
| Wet | $85 | $78 | $7 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $160 | $155 | $5 | |
| Indiana | Dry | $150 | $145 | $5 | |
| Iowa | Dry | $145 | $140 | $5 | |
| Michigan | Dry | $150 | $145 | $5 | |
| Minnesota | Dry | $140 | $130 | $10 | |
| North Dakota | Dry | $130 | $125 | $5 | |
| New York | Dry | $155 | $150 | $5 | |
| South Dakota | Dry | $135 | $125 | $10 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $155 | $150 | $5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $160 | $150 | $10 | |
| Iowa | Dry | $145 | $139 | $6 | |
| Michigan | Dry | $150 | $145 | $5 | |
| Minnesota | Dry | $140 | $136 | $4 | |
| Missouri | Dry | $160 | $160 | $0 | |
| Ohio | Dry | $160 | $155 | $5 | |
| South Dakota | Dry | $140 | $135 | $5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $145 | $145 | $0 | |
| Wet | $50 | $50 | $0 | ||
| Illinois | Dry | $166 | $158 | $8 | |
| Nebraska | Dry | $145 | $145 | $0 | |
| Wet | $50 | $50 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $160 | $145 | $15 | |
| Indiana | Dry | $160 | $148 | $12 | |
| Iowa | Dry | $150 | $145 | $5 | |
| Michigan | Dry | $155 | $145 | $10 | |
| Minnesota | Dry | $145 | $137 | $8 | |
| Nebraska | Dry | $155 | $145 | $10 | |
| New York | Dry | $170 | $155 | $15 | |
| North Dakota | Dry | $140 | $125 | $15 | |
| Ohio | Dry | $160 | $150 | $10 | |
| South Dakota | Dry | $140 | $130 | $10 | |
| Wisconsin | Dry | $150 | $140 | $10 | |
| Valero Energy Corp, San Antonio Texas | |||||
| Indiana | Dry | $160 | $160 | $0 | |
| Iowa | Dry | $0 | $0 | $0 | |
| Minnesota | Dry | $0 | $0 | $0 | |
| Nebraska | Dry | $0 | $0 | $0 | |
| Ohio | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $0 | $0 | $0 | |
| California | Dry | $0 | $0 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $213 | $212 | $1 | |
| *Prices listed per ton. | |||||
| Weekly Average | $151 | $144 | $7 | ||
| 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 | 9/17/2020 | $3.7525 | $134.02 |
| Soybean Meal | 9/17/2020 | $330.40 | |
| DDG Weekly Average Spot Price | $151.00 | ||
| DDG Value Relative to: | 9/17 | 9/10 | |
| Corn | 112.67% | 112.87% | |
| Soybean Meal | 45.70% | 46.29% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.59 | $5.33 | |
| Soybean Meal | $6.96 | $6.55 | |
| 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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