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 $2 higher on average for the week ended Oct. 1. (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 Oct. 1 was $157 per ton, up $2 on average from the prior week. DDG prices strengthened as traders noted that there was good export demand this week. Adding support was the higher cash corn price and tight supplies given the slow return to full production. The DTN National Corn Index on Oct. 1 was 20 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 Oct. 1 was 114.85%, above the five-year average of 109%. The value of DDG relative to soybean meal was 45.50%. The cost per unit of protein for DDG was $5.81, compared to the cost per unit of protein for soybean meal at $7.26.

In its weekly export DDGS price report, the U.S. Grains Council said: "Prices for export DDGS are firmer this week with Barge CIF NOLA offers up $9 to $12/MT and FOB Gulf offers up $16/MT for LH October and up $10 to $12 for November/December. U.S rail rates are $9/MT higher while offers for 40-foot containers to Southeast Asia are mostly higher. Offers for containers to Indonesia and Vietnam are up $7 to $9/MT and those destinations are leading the market higher."

The Energy Information Administration reported midweek that, for the week ended Sept. 25, ethanol inventories declined 1.5% as plant production fell for a third straight week, marking the lowest level since the week ended June 12. Ethanol plant production dropped 25,000 barrels per day (bpd) last week to 881,000 bpd, a 15-week low and 8% lower than the corresponding week in 2019. Four-week average output is down 69,000 bpd against a year ago at 913,000 bpd. Blending activity, a measure of demand, was down 9% from the same week in 2019, data show.

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 10/1/2020 9/24/2020
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $175 $167 $8
Wet $82 $84 -$2
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $170 $158 $12
Wet $82 $78 $4
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $165 $165 $0
Indiana Dry $160 $160 $0
Iowa Dry $155 $150 $5
Michigan Dry $155 $155 $0
Minnesota Dry $150 $145 $5
North Dakota Dry $145 $145 $0
New York Dry $160 $160 $0
South Dakota Dry $145 $140 $5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $165 $160 $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $165 $160 $5
Iowa Dry $150 $150 $0
Michigan Dry $157 $155 $2
Minnesota Dry $150 $150 $0
Missouri Dry $170 $170 $0
Ohio Dry $162 $160 $2
South Dakota Dry $155 $155 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $160 $145 $15
Wet $65 $50 $15
Illinois Dry $173 $169 $4
Nebraska Dry $160 $145 $15
Wet $65 $50 $15
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 $173 $170 $3
Iowa Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
Ohio Dry $162 $160 $2
South Dakota Dry $0 $0 $0
California Dry $0 $0 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $222 $228 -$6
*Prices listed per ton.
Weekly Average $157 $155 $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 Date Bushel Short Ton
Corn 10/1/2020 $3.8275 $136.70
Soybean Meal 10/1/2020 $345.00
DDG Weekly Average Spot Price $157.00
DDG Value Relative to: 10/1 9/24
Corn 114.85% 119.39%
Soybean Meal 45.50% 46.43%
Cost Per Unit of Protein:
DDG $5.81 $5.54
Soybean Meal $7.26 $7.03
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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