Market Matters Blog

DTN Weekly Average DDG Price Surges

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains weekly spot price was $14 higher on average, at $163, for the week ended March 19. (DTN file photo)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly spot price from the 40 locations DTN contacted was up $14 on average, at $163, for the week ended March 19.

Merchandisers noted that, throughout the Midwest, including California, DDG prices have moved up $10 to as high as up $25 this week at plants that are still showing offers. Prices have moved sharply higher as supplies are tight and some plants currently have no offers for spot DDG. Ethanol plants are slowing down due to cheap gasoline and lower cash ethanol prices or for spring maintenance.

Cash corn is in the process of retreating because of weaker basis this week as ethanol plants have widened their bids as much as 30 cents recently or, in some cases, pulled bids altogether for the nearby. While cheaper corn is supportive to plants, sharply lower gasoline prices, and in turn very low cash ethanol values, have been rough on margins.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended March 19 was 132.09%. The value of DDG relative to soybean meal was 51.78%. The cost per unit of protein for DDG was $6.04, compared to the cost per unit of protein for soybean meal at $6.63. As DDG prices rise and supplies tighten further, DDG could price itself out of feed rations temporarily and cheaper feed corn could see some fresh demand.

In its weekly DDGS export update, the U.S. Grains Council noted, "DDGS merchandisers report that prices are rallying on expected supply tightening heading into Q2. Some in the industry expect the price-supportive impacts to continue into Q3 and Q4 of this year. Spot DDGS prices are up $20 per metric ton (mt) this week, if offers can be obtained, for Barge CIF NOLA values while indications for April FOB Gulf DDGS are up $15/mt. U.S. rail rates are $15-20/mt higher as well, depending on the shipment period. Prices for 40-foot containers to Southeast Asia are up $20/mt for April shipment and $15/mt higher for May."

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 3/19/2020 3/12/2020
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $175 $165 $10
Wet $88 $83 $5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Dry $185 $160 $25
Wet $95 $83 $12
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $0 $0 $0
Indiana Dry $0 $0 $0
Iowa Dry $0 $0 $0
Michigan Dry $0 $0 $0
Minnesota Dry $0 $0 $0
North Dakota Dry $0 $0 $0
New York Dry $0 $0 $0
South Dakota Dry $0 $0 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $160 $148 $12
POET Nutrition, Sioux Falls, SD (888-327-8799)
LH MARCH Indiana Dry $170 $155 $15
LH MARCH Iowa Dry $160 $145 $15
LH MARCH Michigan Dry $160 $150 $10
LH MARCH Minnesota Dry $160 $141 $19
LH MARCH Missouri Dry $170 $158 $12
LH MARCH Ohio Dry $170 $160 $10
LH MARCH South Dakota Dry $160 $148 $12
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $155 $145 $10
Wet $60 $50 $10
Illinois MARCH Dry $0 $0 $0
Nebraska Dry $155 $145 $10
Wet $55 $45 $10
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $0 $0 $0
Indiana Dry $0 $0 $0
Iowa Dry $0 $0 $0
Michigan Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
New York Dry $0 $0 $0
North Dakota Dry $0 $0 $0
Ohio Dry $0 $0 $0
South Dakota Dry $0 $0 $0
Wisconsin Dry $0 $0 $0
Valero Energy Corp, San Antonio Texas
Indiana Dry $175 $155 $20
Iowa Dry $145 $140 $5
Minnesota Dry $160 $140 $20
Nebraska Dry $135 $135 $0
Ohio Dry $180 $160 $20
South Dakota Dry $150 $140 $10
California Dry $228 $216 $12
Western Milling, Goshen, California (559-302-1074)
California Dry $241 $228 $13
*Prices listed per ton.
Weekly Average $163 $149 $14
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 3/19/2020 $3.4550 $123.39
Soybean Meal 3/19/2020 $314.80
DDG Weekly Average Spot Price $163.00
DDG Value Relative to: 3/19 3/12
Corn 132.09% 112.83%
Soybean Meal 51.78% 49.90%
Cost Per Unit of Protein:
DDG $6.04 $5.52
Soybean Meal $6.63 $6.29
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

(AG)

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