Market Matters Blog

DTN Weekly Average DDG Price Moves 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 $2 higher on average for the week ended Sept. 10. (DTN file photo)

OMAHA (DTN) -- The average price for domestic distillers dried grains (DDG) from the 40 locations DTN contacted with spot offers for the week ended Sept. 10 was $144 per ton, up $2 from the prior week. DDG prices were steady to higher for the week due in part to firm demand and a higher cash corn price. The DTN National Corn Index on Sept. 10 was 13 cents higher versus one week ago.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Sept. 10 was 112.87%. The value of DDG relative to soybean meal was 46.29%. The cost per unit of protein for DDG was $5.33, compared to the cost per unit of protein for soybean meal at $6.55.

In their weekly export DDGS report, the U.S. Grains Council said, "Exporters report that international destinations have started booking product for fall shipment. Combined with a firmer domestic market, the additional buying interest has pushed prices higher. Barge CIF NOLA offers are up $2 to $3 metric ton (mt) from the prior week while FOB Gulf offers are up $3/mt for October and $2 for November/December. Rail-delivered DDGS are up $4/mt this week for fall delivery while offers for 40-foot containers to Southeast Asia are up $2 to $3/mt at $244 to $246/mt."

The Energy Information Administration reported Sept. 10 that ethanol inventory in the U.S. during the week ended Sept. 4 fell for the first time in four weeks. Blending activity, a measure of demand, fell to an 8-week low and 10.8% below this time in 2019, the EIA showed. Ethanol plant production jumped 19,000 barrels per day (bpd) in the week profiled to the highest level since the week ended July 24, while 8% lower than the corresponding week in 2019. Four-week average output is down 94,000 bpd against year ago at 930,000 bpd.

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

ALL PRICES SUBJECT TO CONFIRMATIONCURRENTPREVIOUSCHANGE
COMPANYSTATE 9/10/20209/3/2020
Bartlett and Company, Kansas City, MO (816 714 3413)
MissouriDry$158$158$0
Wet$79$79$0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri SubjectDry$155$155$0
Wet$78$78$0
CHS, Minneapolis, MN (800-769-1066)
Illinois SubjectDry$155$155$0
Indiana SubjectDry$145$145$0
Iowa SubjectDry$140$140$0
Michigan SubjectDry$145$145$0
Minnesota SubjectDry$130$130$0
North Dakota Subj.Dry$125$125$0
New York SubjectDry$150$150$0
South Dakota Subj.Dry$125$125$0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry$150$150$0
POET Nutrition, Sioux Falls, SD (888-327-8799)
IndianaDry$150$150$0
Iowa Dry$139$135$4
MichiganDry$145$140$5
MinnesotaDry$136$132$4
Missouri Dry$160$160$0
Ohio Dry$155$150$5
South DakotaDry$135$133$2
United BioEnergy, Wichita, KS (316-616-3521)
KansasDry$145$140$5
Wet$50$45$5
Illinois Dry$158$153$5
NebraskaDry$145$140$5
Wet$50$45$5
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry$145$142$3
Indiana Dry$148$142$6
Iowa Dry$145$135$10
Michigan Dry$145$140$5
MinnesotaDry$137$133$4
Nebraska Dry$145$145$0
New York Dry$155$155$0
North DakotaDry$125$125$0
Ohio Dry$150$150$0
South DakotaDry$130$125$5
WisconsinDry$140$140$0
Valero Energy Corp, San Antonio Texas
Indiana Dry$160$153$7
Iowa Dry$0$0$0
Minnesota Dry$0$0$0
Nebraska Dry$0$0$0
Ohio Dry$150$144$6
South Dakota Dry$0$0$0
CaliforniaDry$0$0$0
Western Milling, Goshen, California (559-302-1074)
CaliforniaDry$212$212$0
*Prices listed per ton.
Weekly Average $144$142$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 DateBushelShort Ton
Corn9/10/2020$3.5725$127.59
Soybean Meal9/10/2020 $311.10
DDG Weekly Average Spot Price $144.00
DDG Value Relative to:9/109/3
Corn112.87%115.41%
Soybean Meal46.29%46.53%
Cost Per Unit of Protein:
DDG$5.33$5.26
Soybean Meal$6.55$6.43
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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