Market Matters Blog

DTN Weekly DDG Price Higher on Average

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains weekly average spot price was up $2, to $142 per ton, for the week ended Oct. 10. (DTN file photo)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly average spot price from the 40 locations DTN contacted was up $2, to $142 per ton for the week ended Oct. 10. Prices were mixed from various sellers, but the strength in the cash basis kept the market firm in spite of the sharply lower close in corn futures Thursday.

The Energy Information Administration reported on Wednesday that ethanol inventory in the U.S. was drawn down 2 million barrels (bbl) to a 21.2 million bbl two-year low during the week ended Oct. 4. The steep draw came despite a small decline in blending activity and as domestic plant production edged higher.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Oct. 10 was at 104.56%. The value of DDG relative to soybean meal was at 46.69%. The cost per unit of protein for DDG was $5.26, compared to the cost per unit of protein for soybean meal at $6.40.

In its weekly export DDGS update, the U.S. Grains Council stated, "Barge CIF NOLA prices are slightly lower this week while FOB Gulf offers are steady to $1 per metric ton (mt) lower. Rates for DDGS delivered via rail to the PNW are $2 to $3/MT higher this week with the winter storm across the northwestern Plains complicating logistics. Prices for 40-foot containers to Southeast Asia are $5/MT lower this week for October shipment but are $1 to $2/MT higher for November/December shipment."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 10/11/2019 10/3/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Subject Missouri Dry $150 $150 $0
Subject Wet $75 $75 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $147 $142 $5
Wet $75 $72 $3
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $140 $140 $0
Indiana Dry $140 $145 -$5
Iowa Dry $135 $130 $5
Michigan Dry $150 $145 $5
Minnesota Dry $135 $130 $5
North Dakota Dry $130 $130 $0
New York Dry $150 $145 $5
South Dakota Dry $125 $125 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $145 $145 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $150 $150 $0
Iowa Dry $145 $145 $0
Michigan Dry $135 $135 $0
Minnesota Dry $140 $145 -$5
Missouri Dry $145 $145 $0
Ohio Dry $155 $155 $0
South Dakota Dry $150 $150 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $140 $145 -$5
Wet $45 $55 -$10
Illinois Dry $147 $147 $0
Nebraska Dry $145 $145 $0
Wet $45 $50 -$5
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $145 $140 $5
Indiana Dry $155 $150 $5
Iowa Dry $140 $135 $5
Michigan Dry $150 $145 $5
Minnesota Dry $135 $130 $5
Nebraska Dry $140 $135 $5
New York Dry $165 $160 $5
North Dakota Dry $140 $135 $5
Ohio Dry $155 $150 $5
South Dakota Dry $135 $130 $5
Wisconsin Dry $135 $130 $5
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Subject Indiana Dry $136 $136 $0
Subject Iowa Dry $135 $135 $0
Subject Minnesota Dry $140 $140 $0
Subject Nebraska Dry $135 $135 $0
Subject Ohio Dry $145 $145 $0
Subject South Dakota Dry $135 $135 $0
Subject California Dry $200 $200 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $206 $203 $3
*Prices listed per ton.
Weekly Average $142 $140 $2
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 10/10/2019 $3.8025 $135.80
Soybean Meal 10/10/2019 $304.10
DDG Weekly Average Spot Price $142.00
DDG Value Relative to: 10/10 10/3
Corn 104.56% 100.11%
Soybean Meal 46.69% 46.64%
Cost Per Unit of Protein:
DDG $5.26 $5.15
Soybean Meal $6.40 $6.27
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

(BAS/BE)

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