Market Matters Blog

DTN Weekly Average DDG Price Higher

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's domestic distillers dried grains weekly spot price from available offers was $3 higher on average for the week ended Aug. 13. (DTN file photo)

OMAHA (DTN) -- Of the 40 locations DTN contacted with spot offers for domestic distillers dried grains (DDG) for the week ended Aug. 13, prices were at $131 per ton, $3 higher on average versus the prior week.

DDG prices improved in some areas with nearby supplies becoming tight as demand increases and some sellers told DTN they have sold much of their August product. The DTN National Corn Index was 14 cents higher versus one week ago, adding some price support.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Aug. 13 was 112.77%, and the value of DDG relative to soybean meal was 45.16%. The cost per unit of protein for DDG was $4.85, compared to the cost per unit of protein for soybean meal at $6.11. Cash soybean meal prices have dropped $8 to $9 per ton versus one week ago.

In its weekly export DDGS update, the U.S. Grains Council said: "On the export market, asking prices are higher this week but exporters report buyers are remaining patient so far. Sources note a few DDGS combination vessels have been traded this week but markets have been quiet otherwise. Barge CIF NOLA offers are up $12 per metric ton (mt) for September positions while October/November offers are up $7-$8/mt. FOB NOLA offers are $8-$9/mt higher this week with rail delivered DDGS rising $8/mt as well. Offers for 40-foot containers to Southeast Asia are mostly steady/slightly lower this week, averaging $240/mt."

The Energy Information Administration noted that U.S. ethanol inventory was down 3% in the first week of August, sliding to the lowest level in more than 3 1/2 years as demand rose to a better than four-month high and production hit a three-week low. At 19.750 million barrels (bbl), domestic ethanol stocks fell about 600,000 bbl to the lowest level since the final week of December 2016 at 18.678 million bbl. Ethanol plant production continued lower, falling 13,000 barrels per day (bpd) in the week profiled to 918,000 bpd, 12% lower than the corresponding week in 2019. Four-week average output is down 110,000 bpd against a year ago at 929,000 bpd.

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

ALL PRICES SUBJECT TO CONFIRMATIONCURRENTPREVIOUSCHANGE
COMPANYSTATE 8/13/20208/6/2020
Bartlett and Company, Kansas City, MO (816-753-6300)(816 714 3413)
MissouriDry$145$140$5
Wet$73$70$3
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Dry$150$140$10
Wet$75$70$5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry$140$140$0
Indiana Dry$130$130$0
Iowa Dry$120$120$0
Michigan Dry$130$130$0
MinnesotaDry$120$115$5
North DakotaDry$115$115$0
New YorkDry$135$135$0
South DakotaDry$105$105$0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry$130$130$0
POET Nutrition, Sioux Falls, SD (888-327-8799)
IndianaDry$140$140$0
Iowa Dry$122$120$2
MichiganDry$130$130$0
MinnesotaDry$120$120$0
Missouri Dry$145$145$0
Ohio Dry$140$140$0
South DakotaDry$123$123$0
United BioEnergy, Wichita, KS (316-616-3521)
KansasDry$130$130$0
Wet$40$40$0
Illinois SEPT Dry$150$140$10
NebraskaDry$130$130$0
Wet$40$40$0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry$135$135$0
Indiana Dry$135$135$0
Iowa Dry$125$120$5
Michigan Dry$130$130$0
MinnesotaDry$125$120$5
Nebraska Dry$130$115$15
New York Dry$150$150$0
North DakotaDry$120$115$5
Ohio Dry$140$135$5
South DakotaDry$110$105$5
WisconsinDry$135$130$5
Valero Energy Corp, San Antonio Texas
IndianaDry$147$147$0
Iowa Dry$0$0$0
Minnesota Dry$0$0$0
Nebraska Dry$0$0$0
Ohio Dry$137$137$0
South Dakota Dry$0$0$0
CaliforniaDry$0$0$0
Western Milling, Goshen, California (559-302-1074)
CaliforniaDry$201$200$1
*Prices listed per ton.
Weekly Average $131$128$3
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
Corn8/13/2020$3.2525$116.16
Soybean Meal8/13/2020 $290.10
DDG Weekly Average Spot Price $131.00
DDG Value Relative to:8/138/6
Corn112.77%115.15%
Soybean Meal45.16%45.60%
Cost Per Unit of Protein:
DDG$4.85$4.74
Soybean Meal$6.11$5.91
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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