Market Matters Blog

DTN Weekly DDG Price Slides 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 May 5 was $10 lower on average versus one week ago. (DTN file photo)

OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended May 5 was $296 per ton, down $4 on average versus one week ago. An uptick again in ethanol plant production, along with lower soybean meal prices, is putting pressure on DDG prices. (There will be no DDG price update the week of May 9.)

The Energy Information Administration reported Wednesday that domestic ethanol plants increased production a second week, up 0.6% to 969,000 barrels per day (bpd) through April 29, 1.8% above the same week in 2021. Plant output averaged 969,000 bpd during the four weeks ended April 29 -- 24,000 bpd higher than during the comparable four weeks a year ago.

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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended May 5 was 99.63%. The value of DDG relative to soybean meal was 66.99%, and the cost per unit of protein for DDG was $10.59, compared to the cost per unit of protein for soybean meal at $8.99.

In its weekly DDGS export update, the U.S. Grains Council said: "On the export market, brokers and exporters report that Barge CIF NOLA values are down $19 to $22 metric ton (mt) for May through August shipment while FOB Gulf offers are down $20-25/mt. FOB Gulf offers for June averaged $343/mt this week, down $27 from the prior week. Container offers are down as well, though have seen greater support than the FOB market. Offers for 40-foot containers into Southeast Asia are down $16/mt from last week at $443/mt."

U.S. Census Bureau said Wednesday that U.S. exports of DDGS totaled 927,134 mt in March, up from 870,844 mt in February and up 5% from a year ago. Mexico was the top destination in March, taking 20% of U.S. exports, and was followed by South Korea and Vietnam. In the first three months of 2022, U.S. exports of DDGS were up 12%.

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 5/5/2022 4/28/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $295 $300 -$5
Wet $160 $165 -$5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $280 $298 -$18
Wet $150 $155 -$5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $260 $280 -$20
Indiana Dry $260 $280 -$20
Iowa Dry $270 $285 -$15
Michigan Dry $265 $280 -$15
Minnesota Dry $265 $280 -$15
New York Dry $285 $285 $0
South Dakota Dry $285 $305 -$20
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $290 $295 -$5
Wet $102 $105 -$3
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $285 $305 -$20
Iowa Dry $295 $300 -$5
Michigan Dry $280 $285 -$5
Minnesota Dry $290 $295 -$5
Missouri Dry $315 $315 $0
Ohio Dry $285 $300 -$15
South Dakota Dry $310 $320 -$10
Nebraska Dry $300 $310 -$10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $330 $330 $0
Wet $110 $110 $0
Illinois Dry $295 $295 $0
Nebraska Dry $330 $330 $0
Wet $110 $110 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $280 $290 -$10
Indiana Dry $290 $300 -$10
Iowa Dry $265 $275 -$10
Michigan Dry $275 $285 -$10
Minnesota Dry $270 $280 -$10
Nebraska Dry $290 $300 -$10
New York Dry $305 $315 -$10
North Dakota Dry $295 $305 -$10
Ohio Dry $280 $290 -$10
South Dakota Dry $295 $305 -$10
Wisconsin Dry $267 $275 -$8
Western Kansas Dry $365 $365 $0
Wet $125 $125 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $400 $405 -$5
**Weekly Average: $286 $296 -$10
(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 5/5/2022 $8.0375 $287.05
Soybean Meal 5/5/2022 $426.90
DDG Weekly Average Spot Price $286.00
DDG Value Relative to: 5/5 4/28
Corn 99.63% 101.57%
Soybean Meal 66.99% 67.24%
Cost Per Unit of Protein:
DDG $10.59 $10.96
Soybean Meal $8.99 $9.27
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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