Market Matters Blog

DTN Weekly Average DDG Price Continues 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 $7 higher on average for the week ended Sept. 17. (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. 17 was $151 per ton, up $7 on average from the prior week. DDG prices pushed higher for the week as cash corn prices strengthened; supplies are tight in some spots as demand remains firm, according to merchandisers. The DTN National Corn Index on Sept. 17 was 11 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. 17 was 112.67%, above the 5-year average of 109%. The value of DDG relative to soybean meal was 45.70% and is near the 3-year average. The cost per unit of protein for DDG was $5.59, compared to the cost per unit of protein for soybean meal at $6.96.

In their weekly export DDGS report, the U.S. Grains Council said, "Exporters report strong Q4 demand from international buyers. Barge CIF NOLA offers are $4 to $5 per metric tons (mt) higher this week while FOB Gulf offers are up $6 to $8/mt at $225 for October shipment. U.S. rail rates are steady/higher, averaging a $2/mt gain from the prior week. Offers for 40-foot containers to Southeast Asia are up $7 to $8/mt as demand from that region enters a period of seasonal strength. Containers are offered at $252/mt for October shipment."

The Energy Information Administration reported ethanol inventory during the week ended Sept. 11 in the Midwest PADD 2 declined, falling 5.9% to bring total domestic supplies down as demand recovered and production moved off a 6-week high. Blending activity, a measure of demand, rebounded from an 8-week low, up 15,000 barrels per day (bpd), which was about 7% below the same week in 2019. Ethanol plant production continued to seesaw, falling 15,000 bpd in the week ended Sept. 11, 8% lower than the corresponding week in 2019. Four-week average output is down 89,000 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 CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 9/17/2020 9/10/2020
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $160 $158 $2
Wet $80 $79 $1
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $160 $155 $5
Wet $85 $78 $7
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $160 $155 $5
Indiana Dry $150 $145 $5
Iowa Dry $145 $140 $5
Michigan Dry $150 $145 $5
Minnesota Dry $140 $130 $10
North Dakota Dry $130 $125 $5
New York Dry $155 $150 $5
South Dakota Dry $135 $125 $10
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $155 $150 $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $160 $150 $10
Iowa Dry $145 $139 $6
Michigan Dry $150 $145 $5
Minnesota Dry $140 $136 $4
Missouri Dry $160 $160 $0
Ohio Dry $160 $155 $5
South Dakota Dry $140 $135 $5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $145 $145 $0
Wet $50 $50 $0
Illinois Dry $166 $158 $8
Nebraska Dry $145 $145 $0
Wet $50 $50 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $160 $145 $15
Indiana Dry $160 $148 $12
Iowa Dry $150 $145 $5
Michigan Dry $155 $145 $10
Minnesota Dry $145 $137 $8
Nebraska Dry $155 $145 $10
New York Dry $170 $155 $15
North Dakota Dry $140 $125 $15
Ohio Dry $160 $150 $10
South Dakota Dry $140 $130 $10
Wisconsin Dry $150 $140 $10
Valero Energy Corp, San Antonio Texas
Indiana Dry $160 $160 $0
Iowa Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
Ohio Dry $150 $150 $0
South Dakota Dry $0 $0 $0
California Dry $0 $0 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $213 $212 $1
*Prices listed per ton.
Weekly Average $151 $144 $7
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 9/17/2020 $3.7525 $134.02
Soybean Meal 9/17/2020 $330.40
DDG Weekly Average Spot Price $151.00
DDG Value Relative to: 9/17 9/10
Corn 112.67% 112.87%
Soybean Meal 45.70% 46.29%
Cost Per Unit of Protein:
DDG $5.59 $5.33
Soybean Meal $6.96 $6.55
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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