Market Matters Blog

DTN Weekly Average DDG Price Firm

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 $1 higher on average for the week ended Nov. 5. (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 Nov. 5 was $182 per ton, up $1 on average from the prior week. The higher cash corn and soymeal prices are giving DDG support and prices will likely strengthen if this continues. Other feed markets, especially wheat midds and corn gluten feed, have been strong as well and keeping pace with DDG.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 5 was 124.52%, well above the five-year average of 109%. The value of DDG relative to soybean meal was 46.93% and above the three-year average of 42%. The cost per unit of protein for DDG was $6.74, compared to the cost per unit of protein for soybean meal at $8.16.

In their weekly export DDGS price report, U.S. Grains Council said that, “DDGS merchandisers report the barge market for November and December continues to firm based on higher demand from exporters. Skyrocketing barge freight rates due to strong export demand for nearly every agricultural product is helping prices firm as well. Industry sources expect rising barge freight to push more DDGS into the domestic market. Barge rates are expected to continue rising into January, February, and March. Barge CIF NOLA values are up $3/MT for spot positions and early 2021 positions have risen even more. FOB Gulf indications are wide-ranging this week but are up $8 to $9/MT for spot shipment. Exporters report wide bid/ask spreads for export DDGS and that purchases are being made at offers and sales are made at bids.”

The U.S. Census Bureau said Wednesday that U.S. exports of DDGS totaled 1,158,164 mt in September, up from 1,016,140 mt in August and up 16% from a year ago. Vietnam was the top destination in September, taking 11% of U.S. exports and was followed by Japan, South Korea and Mexico. For the first nine months of 2020, U.S. exports of DDGS were down 1% from a year ago.

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 11/5/2020 10/29/2020
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $200 $193 $7
Wet $100 $97 $3
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $200 $195 $5
Wet $95 $95 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $190 $185 $5
Indiana Dry $180 $180 $0
Iowa Dry $180 $180 $0
Michigan Dry $180 $180 $0
Minnesota Dry $170 $170 $0
North Dakota Dry $165 $160 $5
New York Dry $195 $195 $0
South Dakota Dry $170 $170 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $185 $185 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $190 $190 $0
Iowa Dry $185 $183 $2
Michigan Dry $185 $185 $0
Minnesota Dry $180 $190 -$10
Missouri Dry $195 $195 $0
Ohio Dry $190 $190 $0
South Dakota Dry $183 $183 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $177 $177 $0
Wet $75 $75 $0
Illinois Dry $195 $193 $2
Nebraska Dry $177 $177 $0
Wet $75 $75 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $190 $190 $0
Indiana Dry $185 $180 $5
Iowa Dry $175 $175 $0
Michigan Dry $185 $185 $0
Minnesota Dry $175 $175 $0
Nebraska Dry $180 $180 $0
New York Dry $210 $200 $10
North Dakota Dry $175 $170 $5
Ohio Dry $185 $185 $0
South Dakota Dry $165 $160 $5
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 Dry $256 $245 $11
*Prices listed per ton.
Weekly Average $182 $181 $1
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 11/5/2020 $4.0925 $146.16
Soybean Meal 11/5/2020 $387.80
DDG Weekly Average Spot Price $182.00
DDG Value Relative to: 11/5 10/29
Corn 124.52% 127.17%
Soybean Meal $46.93 48.02%
Cost Per Unit of Protein:
DDG $6.74 $6.70
Soybean Meal $8.16 $7.93
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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