Market Matters Blog
DTN Weekly Average DDG Price Moves Higher
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. 8 was $164 per ton, up $7 on average from the prior week. DDG prices strengthened as traders noted there has been good export demand along with unsubstantiated rumors that China may have bought U.S. ethanol. Given that rumor and the strong CIF NOLA price seen this week, some feel it could point to China possibly buying U.S. DDGS.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Oct. 8 was 118.65%, above the 5-year average of 109%. The value of DDG relative to soybean meal was 45.65%. The cost per unit of protein for DDG was $6.07, compared to the cost per unit of protein for soybean meal at $7.56.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
In its weekly export DDGS price report, the U.S. Grains Council said: "Prices for export DDGS are wide-ranging but mostly higher so far this week. Barge CIF NOLA offers are up $14/metric ton (mt) for November shipment while FOB Gulf offers are $10/mt higher for spot positions. U.S. rail rates are averaging $14/mt higher for November while containerized DDGS destined for Southeast Asia are firmer as well. Market sources report that Asian buying interest has picked up in the last week as some end users remain short-bought. Containerized DDGS for Southeast Asia are up $17/mt for spot positions and are averaging $271/mt this week."
The U.S. Census Bureau said Tuesday that U.S. exports of DDGS totaled 1,016,140 mt in August, down from 1,083,008 mt in July and down 12% from a year ago. Mexico was the top destination in August, taking 14% of U.S. exports and was followed by Vietnam and South Korea. For the first eight months of 2020, U.S. exports of DDGS were down 4% from a year ago.
The Energy Information Administration reported at midweek that, for the week ended Oct. 1, domestic ethanol inventories were again slightly lower though blending demand dropped 2% and overall production rose for the first time in four weeks after three straight weekly declines.
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 | 10/8/2020 | 10/1/2020 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $178 | $175 | $3 | |
| Wet | $89 | $82 | $7 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri Subject | Dry | $172 | $170 | $2 | |
| Wet | $82 | $82 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $175 | $165 | $10 | |
| Indiana | Dry | $165 | $160 | $5 | |
| Iowa | Dry | $160 | $155 | $5 | |
| Michigan | Dry | $160 | $155 | $5 | |
| Minnesota | Dry | $150 | $150 | $0 | |
| North Dakota | Dry | $145 | $145 | $0 | |
| New York | Dry | $190 | $160 | $30 | |
| South Dakota | Dry | $150 | $145 | $5 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $170 | $165 | $5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $175 | $165 | $10 | |
| Iowa | Dry | $167 | $150 | $17 | |
| Michigan | Dry | $170 | $157 | $13 | |
| Minnesota | Dry | $165 | $150 | $15 | |
| Missouri | Dry | $180 | $170 | $10 | |
| Ohio | Dry | $175 | $162 | $13 | |
| South Dakota | Dry | $165 | $155 | $10 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $160 | $160 | $0 | |
| Wet | $65 | $65 | $0 | ||
| Illinois | Dry | $178 | $173 | $5 | |
| Nebraska | Dry | $160 | $160 | $0 | |
| Wet | $65 | $65 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $165 | $160 | $5 | |
| Indiana | Dry | $165 | $160 | $5 | |
| Iowa | Dry | $155 | $150 | $5 | |
| Michigan | Dry | $165 | $155 | $10 | |
| Minnesota | Dry | $155 | $145 | $10 | |
| Nebraska | Dry | $165 | $155 | $10 | |
| New York | Dry | $190 | $170 | $20 | |
| North Dakota | Dry | $140 | $140 | $0 | |
| Ohio | Dry | $170 | $160 | $10 | |
| South Dakota | Dry | $155 | $140 | $15 | |
| Wisconsin | Dry | $150 | $150 | $0 | |
| Valero Energy Corp, San Antonio Texas | |||||
| Indiana | Dry | $173 | $173 | $0 | |
| Iowa | Dry | $0 | $0 | $0 | |
| Minnesota | Dry | $0 | $0 | $0 | |
| Nebraska | Dry | $0 | $0 | $0 | |
| Ohio | Dry | $162 | $162 | $0 | |
| South Dakota | Dry | $0 | $0 | $0 | |
| California | Dry | $0 | $0 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $250 | $222 | $28 | |
| *Prices listed per ton. | |||||
| Weekly Average | $164 | $157 | $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 | 10/8/2020 | $3.8700 | $138.21 |
| Soybean Meal | 10/8/2020 | $359.20 | |
| DDG Weekly Average Spot Price | $164.00 | ||
| DDG Value Relative to: | 10/8 | 10/1 | |
| Corn | 118.65% | 114.85% | |
| Soybean Meal | 45.65% | 45.50% | |
| Cost Per Unit of Protein: | |||
| DDG | $6.07 | $5.81 | |
| Soybean Meal | $7.56 | $7.26 | |
| 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
(c) Copyright 2020 DTN, LLC. All rights reserved.
Comments
To comment, please Log In or Join our Community .