Market Matters Blog

DTN Weekly Average DDG Price Lower

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN domestic distillers dried grains weekly spot prices of available offers were mostly lower for the week ended June 25. (DTN file photo)

OMAHA (DTN) -- Of the 40 locations DTN contacted that showed offers for domestic distillers dried grains (DDG) for the week ended June 25, posted offers were mostly lower, averaging $130 per ton, down $4 versus the prior week.

DDG prices have fallen since the beginning of the month as demand continues to be flat both domestically and in the export sector. The cash corn price has been falling, also adding pressure to DDG and other corn feed byproducts. The DTN National Corn Index is down 12 cents versus one week ago.

Wednesday's Energy Information Administration ethanol report noted that ethanol inventory in the United States was drawn down for the ninth consecutive week to a 6 1/2-month low during the week ended June 19. The draw came with ongoing improvement in blending activity with EIA reporting a 5.3% increase in net refiner and blender ethanol inputs to a 12-week high. Ethanol plant production ramped up more than blending activity, up 6.2% while down 16.7% against a year ago. Four-week average output is down 22.3% against a year ago and 7.5% above blending demand through last week. Wednesday's production number is now approximately 85% of where we were in February, a good sign that ethanol plants continue to recover.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended June 25 was 114.73%. The value of DDG relative to soybean meal was 45.53%. The cost per unit of protein for DDG was $4.81, compared to the cost per unit of protein for soybean meal at $6.01.

NOTE: All prices listed below can change at any time and are subject to confirmation from seller.

ALL PRICES SUBJECT TO CONFIRMATIONCURRENTPREVIOUSCHANGE
COMPANYSTATE 6/25/20206/18/2020
Bartlett and Company, Kansas City, MO (816-753-6300)
MissouriDry$150$150$0
Wet$75$75$0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Dry$130$140-$10
Wet$75$75$0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry$130$140-$10
Indiana Dry$128$135-$7
Iowa Dry$120$128-$8
Michigan Dry$138$145-$7
MinnesotaDry$120$125-$5
North DakotaDry$125$125$0
New YorkDry$145$170-$25
South DakotaDry$110$115-$5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas APRILDry$125$130-$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
IndianaDry$135$140-$5
Iowa Dry$130$135-$5
MichiganDry$135$145-$10
MinnesotaDry$130$135-$5
Missouri Dry$147$150-$3
Ohio Dry$135$140-$5
South DakotaDry$135$140-$5
United BioEnergy, Wichita, KS (316-616-3521)
KansasDry$130$130$0
Wet$40$40$0
Illinois MARCH Dry$141$143-$2
NebraskaDry$130$130$0
Wet$40$40$0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry$135$140-$5
Indiana Dry$140$145-$5
Iowa Dry$120$125-$5
Michigan Dry$135$140-$5
MinnesotaDry$120$125-$5
Nebraska Dry$105$110-$5
New York Dry$155$160-$5
North DakotaDry$110$115-$5
Ohio Dry$140$145-$5
South DakotaDry$100$105-$5
WisconsinDry$130$135-$5
Valero Energy Corp, San Antonio Texas
IndianaDry$150$150$0
Iowa Dry$0$0$0
Minnesota Dry$0$0$0
Nebraska Dry$0$0$0
Ohio Dry$140$140$0
South Dakota Dry$0$0$0
CaliforniaDry$0$0$0
Western Milling, Goshen, California (559-302-1074)
CaliforniaDry$200$209-$9
*Prices listed per ton.
Weekly Average $130$134-$4
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 DateBushelShort Ton
Corn6/25/2020$3.1725$113.30
Soybean Meal6/25/2020 $285.50
DDG Weekly Average Spot Price $130.00
DDG Value Relative to:6/256/18
Corn114.73%113.35%
Soybean Meal45.53%46.40%
Cost Per Unit of Protein:
DDG$4.81$4.96
Soybean Meal$6.01$6.08
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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