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 $3 higher on average for the week ended Oct. 29. (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. 29 was $181 per ton, up $3 on average from the prior week. DDG prices were higher this past week even as the cash corn price fell. Tight supplies, logistic issues in some areas and good demand from feeders are all factors supporting this market.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Oct. 29 was 127.17%, well above the five-year average of 109%. The value of DDG relative to soybean meal was 48.02%. The cost per unit of protein for DDG was $6.70, compared to the cost per unit of protein for soybean meal at $7.93.

In their weekly export DDGS price report, U.S. Grains Council said that, “The recent tightness in export logistics pushed CIF NOLA rates higher and squeezed export margins. This week's move lower in Barge CIF NOLA rates is seen as a move to increase netbacks to exporters. Spot rates for CIF NOLA DDGs are down $13 per metric ton (MT) while deferred positions are down $20/MT. FOB Gulf DDGS prices are weaker as well, with November trading down $9/MT, but deferred positions are down only $5 to $7/MT. U.S. rail logistics remain tight amid a full export pipeline for corn and soybeans amid this year's harvest. Rail rates for DDGs are up $3 to $4/MT on average this week. Finally, 40-foot containers to Southeast Asia are up $10/MT this week, averaging $295/MT.”

The Energy Information Administration reported for the week ended Oct. 23 that domestic ethanol inventories continued lower for a second straight week, down 0.5%, though plant production rebounded to a 10-week high. While plant production increased, it remains 6.3% lower than the corresponding week in 2019.

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

ALL PRICES SUBJECT TO CONFIRMATION CURRENT CURRENT CHANGE
COMPANY STATE 10/29/2020 10/22/2020
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $193 $195 -$2
Wet $97 $97 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $195 $195 $0
Wet $95 $95 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $185 $185 $0
Indiana Dry $180 $170 $10
Iowa Dry $180 $170 $10
Michigan Dry $180 $170 $10
Minnesota Dry $170 $160 $10
North Dakota Dry $160 $155 $5
New York Dry $195 $190 $5
South Dakota Dry $170 $160 $10
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $185 $180 $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $190 $190 $0
Iowa Dry $183 $181 $2
Michigan Dry $185 $180 $5
Minnesota Dry $190 $177 $13
Missouri Dry $195 $195 $0
Ohio Dry $190 $190 $0
South Dakota Dry $183 $180 $3
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $177 $177 $0
Wet $75 $75 $0
Illinois NOVEMBER Dry $193 $188 $5
Nebraska Dry $177 $177 $0
Wet $75 $75 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $190 $190 $0
Indiana Dry $180 $180 $0
Iowa Dry $175 $175 $0
Michigan Dry $185 $185 $0
Minnesota Dry $175 $175 $0
Nebraska Dry $180 $180 $0
New York Dry $200 $200 $0
North Dakota Dry $170 $170 $0
Ohio Dry $185 $185 $0
South Dakota Dry $160 $160 $0
Wisconsin Dry $170 $170 $0
Valero Energy Corp, San Antonio Texas
Subject Indiana Dry $183 $183 $0
Iowa Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
Subject Ohio Dry $172 $172 $0
South Dakota Dry $0 $0 $0
California Dry $0 $0 $0
Western Milling, Goshen, California (559-302-1074)
California SUBJECT Dry $245 $245 $0
*Prices listed per ton.
Weekly Average $181 $178 $3
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 10/29/2020 $3.9850 $142.32
Soybean Meal 10/29/2020 $376.90
DDG Weekly Average Spot Price $181.00
DDG Value Relative to: 10/29 10/22
Corn 127.17% 119.74%
Soybean Meal $48.02 46.55%
Cost Per Unit of Protein:
DDG $6.70 $6.59
Soybean Meal $7.93 $8.05
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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