Market Matters Blog

DTN Weekly Average DDG Price Higher

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains weekly average spot price was up $1 at $131 per ton for the week ended Aug. 22. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly average spot price from the 40 locations DTN contacted was up $1 at $131 per ton, for the week ended Aug. 22. The market is firming as prices are turning higher on reduced ethanol plant runtimes causing tight supplies in some regions.

The Energy Information Administration reported at midweek that ethanol plant production dropped to the lowest level in 18 weeks for the week ended Aug. 15. Ethanol stocks decreased 516,000 barrels, 0.4% above than the same week in 2018.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Aug. 22 was at 100.97% versus the three-year average of 106%. The value of DDG relative to soybean meal was at 44.60%. The cost per unit of protein for DDG was $4.85, compared to the cost per unit of protein for soybean meal at $6.18.

In its weekly export DDGS update, the U.S. Grains Council stated, "International inquiries are active, especially from Vietnam, but exporters report slow sales. Barge CIF NOLA values are steady this week while FOB Gulf offers have fallen $6/metric ton (mt) for September shipment. Rail rates are $2-3/mt higher while prices for 40-foot containers are steady this week."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 8/22/2019 8/15/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $145 $150 -$5
Wet $73 $75 -$2
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $135 $135 $0
Wet $70 $70 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $135 $135 $0
Indiana Dry $135 $130 $5
Iowa Dry $120 $115 $5
Michigan Dry $140 $140 $0
Minnesota Dry $120 $115 $5
North Dakota Dry $120 $120 $0
New York Dry $135 $135 $0
South Dakota Dry $115 $115 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $130 $130 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $135 $135 $0
Iowa Dry $130 $130 $0
Michigan Dry $120 $120 $0
Minnesota Dry $130 $125 $5
Missouri Dry $145 $140 $5
Ohio Dry $135 $135 $0
South Dakota Dry $125 $135 -$10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $135 $135 $0
Wet $40 $40 $0
Illinois Dry $140 $135 $5
Nebraska Dry $135 $135 $0
Wet $40 $40 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $135 $130 $5
Indiana Dry $135 $135 $0
Iowa Dry $125 $125 $0
Michigan Dry $130 $130 $0
Minnesota Dry $120 $120 $0
Nebraska Dry $130 $122 $8
New York Dry $150 $150 $0
North Dakota Dry $135 $130 $5
Ohio Dry $150 $150 $0
South Dakota Dry $125 $125 $0
Wisconsin Dry $130 $130 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $130 $130 $0
Iowa Dry $125 $125 $0
Minnesota Dry $120 $120 $0
Nebraska Dry $135 $135 $0
Ohio Dry $135 $135 $0
South Dakota Dry $128 $128 $0
California Dry $183 $178 $5
Western Milling, Goshen, California (559-302-1074)
SUBJECT California Dry $188 $188 $0
*Prices listed per ton.
Weekly Average $131 $130 $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 8/22/2019 $3.6325 $129.73
Soybean Meal 8/22/2019 $293.70
DDG Weekly Average Spot Price $131.00
DDG Value Relative to: 8/22 8/15
Corn 100.97% 100.90%
Soybean Meal 44.60% 44.51%
Cost Per Unit of Protein:
DDG $4.85 $4.81
Soybean Meal $6.18 $6.14
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

(CZ)

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