Market Matters Blog

DTN Weekly Average DDG Price Slightly 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, to $140 per ton, for the week ended Oct. 3. (DTN file photo)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly average spot price from the 40 locations DTN contacted was up $1, to $140 per ton, for the week ended Oct. 3. Prices were mixed from various sellers, but the strength in the cash has kept the market firm overall.

The Energy Information Administration reported on Wednesday that for the week ended Sept. 27, ethanol plant production increased 15,000 barrels per day (bpd) or 1.6% from a more than 3-1/2 year low to 958,000 bpd, which is 57,000 bpd or 5.6% below the year-ago operating rate for the same week. Midwest producers accounted for 10,000 bpd of the weekly increase in output.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Oct. 3 was at 100.11%. The value of DDG relative to soybean meal was at 46.64%. The cost per unit of protein for DDG was $5.15, compared to the cost per unit of protein for soybean meal at $6.27.

In its weekly export DDGS update, the U.S. Grains Council stated, "The DDGS export market is much the same as last week with FOB Gulf values declining slightly and 40-foot containers to Southeast Asia steady at $239 per metric ton. The move higher in soybean meal futures has reportedly prompted some international buyers to take a more cautious approach. Still, with DDGS supplies expected to remain tighter through the fall, exporters are defending asking prices."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 10/3/2019 9/19/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $150 $140 $10
Wet $75 $70 $5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $142 $142 $0
Wet $72 $72 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $140 $145 -$5
Indiana Dry $145 $145 $0
Iowa Dry $130 $130 $0
Michigan Dry $145 $150 -$5
Minnesota Dry $130 $130 $0
North Dakota Dry $130 $130 $0
New York Dry $145 $145 $0
South Dakota Dry $125 $125 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $145 $135 $10
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $150 $155 -$5
Iowa Dry $145 $145 $0
Michigan Dry $135 $135 $0
Minnesota Dry $145 $140 $5
Missouri Dry $145 $150 -$5
Ohio Dry $155 $150 $5
South Dakota Dry $150 $145 $5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $145 $150 -$5
Wet $55 $60 -$5
Illinois Dry $147 $145 $2
Nebraska Dry $145 $145 $0
Wet $50 $50 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $140 $140 $0
Indiana Dry $150 $145 $5
Iowa Dry $135 $135 $0
Michigan Dry $145 $145 $0
Minnesota Dry $130 $130 $0
Nebraska Dry $135 $130 $5
New York Dry $160 $150 $10
North Dakota Dry $135 $135 $0
Ohio Dry $150 $150 $0
South Dakota Dry $130 $130 $0
Wisconsin Dry $130 $130 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $136 $136 $0
Iowa Dry $135 $125 $10
Minnesota Dry $140 $120 $20
Nebraska Dry $135 $135 $0
Ohio Dry $145 $140 $5
South Dakota Dry $135 $128 $7
California Dry $200 $195 $5
Western Milling, Goshen, California (559-302-1074)
California Dry $203 $200 $3
*Prices listed per ton.
Weekly Average $140 $139 $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 10/3/2019 $3.8875 $138.84
Soybean Meal 10/3/2019 $298.00
DDG Weekly Average Spot Price $140.00
DDG Value Relative to: 10/3 9/19
Corn 100.11% 104.41%
Soybean Meal 46.64% 47.57%
Cost Per Unit of Protein:
DDG $5.15 $5.15
Soybean Meal $6.27 $6.15
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

(BAS/CZ)

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