Market Matters Blog

DTN Weekly Average DDG Price Moves Slightly Lower

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's domestic distillers dried grains weekly average spot price from available offers was down $1 per ton for the week ended July 9. (DTN file photo)

OMAHA (DTN) -- Of the 40 locations DTN contacted that showed offers for domestic distillers dried grains (DDG) for the week ended July 9, posted offers were mixed but $1 lower on average at $130 per ton versus the prior week. The cash corn price has fluctuated in the past week and was pretty close to unchanged at midweek compared to our last price report. DDG demand is still weak as maintenance diets are still being used by feeders and the recent stretch of hot weather brings down caloric intake for livestock.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended July 9 was 103.63%. The value of DDG relative to soybean meal was 44.05%. The cost per unit of protein for DDG was $4.81, compared to the cost per unit of protein for soybean meal at $6.21.

Wednesday's Energy Information Administration ethanol report noted for the week ended July 3, ethanol inventory in the U.S. moved off the lowest level since the first week of January 2017, rising for the first time in 11 weeks, but was at a 10.4% year-over-year supply deficit. The gain came through blending activity, which rose 2.5% on the week; blending activity during the four weeks ended July 3 averaged 825,000 barrels per day (bpd), 121,000 bpd below the comparable year-ago period. Ethanol plant production continued higher, up 14,000 bpd to 914,000 bpd, but down 133,000 bpd or 12.7% against year ago. The four-week average output is down 183,000 bpd against a year ago at 887,000 bpd.

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

ALL PRICES SUBJECT TO CONFIRMATIONCURRENTPREVIOUSCHANGE
COMPANYSTATE 7/9/20207/1/2020
Bartlett and Company, Kansas City, MO (816-753-6300)
MissouriDry$135$140-$5
Wet$68$70-$2
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Dry$140$140$0
Wet$75$75$0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry$140$145-$5
Indiana Dry$142$148-$6
Iowa Dry$120$125-$5
Michigan Dry$138$140-$2
MinnesotaDry$120$125-$5
North DakotaDry$120$125-$5
New YorkDry$145$150-$5
South DakotaDry$110$115-$5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry$125$120$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
IndianaDry$140$135$5
Iowa Dry$121$125-$4
MichiganDry$135$135$0
MinnesotaDry$120$130-$10
Missouri Dry$145$145$0
Ohio Dry$140$135$5
South DakotaDry$125$127-$2
United BioEnergy, Wichita, KS (316-616-3521)
KansasDry$130$130$0
Wet$40$40$0
Illinois Dry$142$142$0
NebraskaDry$130$130$0
Wet$40$40$0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry$135$135$0
Indiana Dry$140$140$0
Iowa Dry$120$120$0
Michigan Dry$135$135$0
MinnesotaDry$120$120$0
Nebraska Dry$105$105$0
New York Dry$155$155$0
North DakotaDry$110$110$0
Ohio Dry$140$140$0
South DakotaDry$100$100$0
WisconsinDry$130$130$0
Valero Energy Corp, San Antonio Texas
IndianaDry$154$154$0
Iowa Dry$0$0$0
Minnesota Dry$0$0$0
Nebraska Dry$0$0$0
Ohio Dry$145$145$0
South Dakota Dry$0$0$0
CaliforniaDry$0$0$0
Western Milling, Goshen, California (559-302-1074)
CaliforniaDry$204$202$2
*Prices listed per ton.
Weekly Average $130$131-$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 DateBushelShort Ton
Corn7/9/2020$3.5125$125.45
Soybean Meal7/9/2020 $295.10
DDG Weekly Average Spot Price $130.00
DDG Value Relative to:7/97/1
Corn103.63%105.33%
Soybean Meal44.05%44.76%
Cost Per Unit of Protein:
DDG$4.81$4.85
Soybean Meal$6.21$6.16
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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