Market Matters Blog
DTN Weekly Average DDG Price Weakens
OMAHA (DTN) -- The average price for domestic distillers dried grains (DDG) from the 39 locations DTN contacted with spot offers for the week ended Feb. 4 was $234 per ton, down $1 on average from one week ago. DDG prices remain high and merchandisers noted DDG is not losing demand as other feed products also have risen in price.
The Energy Information Administration reported at midweek ethanol plant production increased 3,000 barrels per day (bpd) in the past week to 936,000 bpd, 13.4% lower than the corresponding week in 2020. Four-week average output dropped 125,000 bpd against year ago to 938,000 bpd.
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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Feb. 4 was 119.12% versus the five-year average of 109%. The value of DDG relative to soybean meal was 54.02% versus the three-year average of 42%. The cost per unit of protein for DDG was $8.67, compared to the cost per unit of protein for soybean meal at $9.12.
In their weekly export DDGS update, the U.S. Grains Council noted industry sources said the export DDGS market is mixed in quiet trade. "Merchandisers and exporters report a wide bid-ask spread is creating volatility in traded prices. Barge CIF NOLA values are slightly lower this week while FOB NOLA offers are steady to $1 to $2 metric ton (mt) higher. Prices for 40-foot containers to Southeast Asia are higher this week, with product destined for Malaysia leading the way. On average, containers to Southeast Asia are offered at $355 to $356 for February-April shipment, with spot offers up $8 mt while deferred positions are up $6 mt," said USGC.
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 | 2/4/2021 | 1/28/2021 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $248 | $250 | -$2 | |
| Wet | $124 | $125 | -$1 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri | Dry | $240 | $240 | $0 | |
| Wet | $120 | $120 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $235 | $235 | $0 | |
| Indiana | Dry | $228 | $230 | -$2 | |
| Iowa | Dry | $228 | $230 | -$2 | |
| Michigan | Dry | $230 | $230 | $0 | |
| Minnesota | Dry | $225 | $225 | $0 | |
| North Dakota | Dry | $225 | $230 | -$5 | |
| New York | Dry | $290 | $290 | $0 | |
| South Dakota | Dry | $220 | $225 | -$5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $240 | $240 | $0 | |
| Iowa | Dry | $225 | $225 | $0 | |
| Michigan | Dry | $240 | $240 | $0 | |
| Minnesota | Dry | $220 | $220 | $0 | |
| Missouri | Dry | $260 | $260 | $0 | |
| Ohio | Dry | $235 | $235 | $0 | |
| South Dakota | Dry | $235 | $235 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $243 | $243 | $0 | |
| Wet | $75 | $75 | $0 | ||
| Illinois | Dry | $243 | $243 | $0 | |
| Nebraska | Dry | $243 | $243 | $0 | |
| Wet | $75 | $75 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $240 | $235 | $5 | |
| Indiana | Dry | $240 | $235 | $5 | |
| Iowa | Dry | $225 | $225 | $0 | |
| Michigan | Dry | $230 | $230 | $0 | |
| Minnesota | Dry | $220 | $220 | $0 | |
| Nebraska | Dry | $235 | $235 | $0 | |
| New York | Dry | $285 | $285 | $0 | |
| North Dakota | Dry | $235 | $235 | $0 | |
| Ohio | Dry | $235 | $235 | $0 | |
| South Dakota | Dry | $230 | $230 | $0 | |
| Wisconsin | Dry | $230 | $230 | $0 | |
| Valero Energy Corp, San Antonio, Texas | |||||
| Indiana | Dry | $240 | $240 | $0 | |
| Iowa | Dry | $0 | $0 | $0 | |
| Minnesota | Dry | $0 | $0 | $0 | |
| Nebraska | Dry | $0 | $0 | $0 | |
| Ohio | Dry | $245 | $245 | $0 | |
| South Dakota | Dry | $0 | $0 | $0 | |
| California | Dry | $0 | $0 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $301 | $302 | -$1 | |
| *Prices listed per ton. | |||||
| Weekly Average | $234 | $235 | -$1 | ||
| 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 | 2/4/2021 | $5.5000 | $196.43 |
| Soybean Meal | 2/4/2021 | $433.10 | |
| DDG Weekly Average Spot Price | $234.00 | ||
| DDG Value Relative to: | 2/4 | 1/28 | |
| Corn | 119.12% | 123.10% | |
| Soybean Meal | 54.02% | 55.02% | |
| Cost Per Unit of Protein: | |||
| DDG | $8.67 | $8.70 | |
| Soybean Meal | $9.12 | $8.99 | |
| 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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