Market Matters Blog

DTN Weekly Average DDG Price Higher Again

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 $4 higher on average for the week ended Sept. 24. (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. 24 was $155 per ton, up $4 on average from the prior week.

DDG prices pushed higher again this week even after the cash corn price dropped. Buyers note that domestic demand remains strong amid tight supplies. The DTN National Corn Index on Sept. 24 was 11 cents lower 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. 24 was 119.39%, above the five-year average of 109%. The value of DDG relative to soybean meal was 46.43%. The cost per unit of protein for DDG was $5.54, compared to the cost per unit of protein for soybean meal at $7.03.

In its weekly export DDGS price report, the U.S. Grains Council said: "Brokers report that international destinations are working on covering Q4 and Q1 2021 needs and are checking prices daily. With FOB Gulf soymeal and DDGS prices both moving higher this month, end users are reportedly nervous about further price increases, leading to more frequent price checks. Barge CIF NOLA offers are $11-$16 per metric ton (mt) higher this week while FOB Gulf offers are up $13/mt for spot positions and $11-$12/mt for deferred. U.S. rail rates are $7-$8/mt higher while 40-foot containers to Southeast Asia are up $5-$6/mt, averaging $258. Offers for containers to Malaysia and Vietnam have posted the largest price increases this week, up $10-$12/mt."

The Energy Information Administration reported that, for the week ended Sept. 18, domestic ethanol inventories increased for the first time in three weeks as implied demand continued the seesaw pattern seen over the past four weeks. Ethanol plant production fell for a second consecutive week, sliding 20,000 barrels per day (bpd) to 906,000 bpd, a 12-week low and 3.9% lower than the corresponding week in 2019. Four-week average output is down 72,000 bpd against year ago at 924,000 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 9/24/2020 9/17/2020
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $167 $160 $7
Wet $84 $80 $4
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $158 $160 -$2
Wet $78 $85 -$7
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $165 $160 $5
Indiana Dry $160 $150 $10
Iowa Dry $150 $145 $5
Michigan Dry $155 $150 $5
Minnesota Dry $145 $140 $5
North Dakota Dry $145 $130 $15
New York Dry $160 $155 $5
South Dakota Dry $140 $135 $5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $160 $155 $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $160 $160 $0
Iowa Dry $150 $145 $5
Michigan Dry $155 $150 $5
Minnesota Dry $150 $140 $10
Missouri Dry $170 $160 $10
Ohio Dry $160 $160 $0
South Dakota Dry $155 $140 $15
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $145 $145 $0
Wet $50 $50 $0
Illinois Dry $169 $166 $3
Nebraska Dry $145 $145 $0
Wet $50 $50 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $160 $160 $0
Indiana Dry $160 $160 $0
Iowa Dry $150 $150 $0
Michigan Dry $155 $155 $0
Minnesota Dry $145 $145 $0
Nebraska Dry $155 $155 $0
New York Dry $170 $170 $0
North Dakota Dry $140 $140 $0
Ohio Dry $160 $160 $0
South Dakota Dry $140 $140 $0
Wisconsin Dry $150 $150 $0
Valero Energy Corp, San Antonio Texas
Indiana Dry $170 $160 $10
Iowa Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
Ohio Dry $160 $150 $10
South Dakota Dry $0 $0 $0
California Dry $0 $0 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $228 $213 $15
*Prices listed per ton.
Weekly Average $155 $151 $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 Date Bushel Short Ton
Corn 9/24/2020 $3.6350 $129.82
Soybean Meal 9/24/2020 $333.80
DDG Weekly Average Spot Price $155.00
DDG Value Relative to: 9/24 9/17
Corn 119.39% 112.67%
Soybean Meal 46.43% 45.70%
Cost Per Unit of Protein:
DDG $5.54 $5.59
Soybean Meal $7.03 $6.96
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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