Market Matters Blog

DTN Weekly DDG Price Slightly Higher on Average

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 per ton on average for the week ended Dec. 10. (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 Dec. 10 was $203 per ton, up $1 on average versus two weeks ago. DDG prices this week were mixed but remained firm amid tight supplies at some plants and strong export demand.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Dec. 10 was 135.25%, well above the 5-year average of 109%. The value of DDG relative to soybean meal was 53.28% and above the 3-year average of 42%. The cost per unit of protein for DDG was $7.52, compared to the cost per unit of protein for soybean meal at $8.02.

In its weekly export DDGS price report, the U.S. Grains Council wrote, "Brokers report that international demand for DDGS remains strong but logistical snags for container loadings in California are pressuring domestic values. Sources report that some vessels are leaving ports with less than what was booked due to a lack of empty containers. This is causing a backup of product that is now destined for the CIF market. Barge CIF NOLA offers are down $12 per metric ton (mt) for first quarter positions while FOB NOLA offers have fared better, falling just $9 to $10/mt. The container market dynamics are supporting offers for 40-foot containers to Southeast Asia, with offers up $5 to $6/mt for Q1 positions at $321/mt on average."

The Energy Information Administration report Wednesday showed during the week ended Dec. 4 total domestic ethanol inventories climbed to a 27-week high as implied demand eroded further. Ethanol plant production jumped 1.7% to 991,000 barrels per day (bpd), marking the highest level since March 20, but 7.6% 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 PREVIOUS CHANGE
COMPANY STATE 12/10/2020 12/3/2020
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $230 $225 $5
Wet $115 $113 $2
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Dry $235 $235 $0
Wet $115 $115 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $210 $215 -$5
Indiana Dry $200 $200 $0
Iowa Dry $198 $205 -$7
Michigan Dry $198 $200 -$2
Minnesota Dry $200 $200 $0
North Dakota Dry $195 $195 $0
New York Dry $230 $225 $5
South Dakota Dry $200 $200 $0
E Energy Adams, Adams, Nebraska
Adams Dry $225 $230 -$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $205 $205 $0
Iowa Dry $205 $205 $0
Michigan Dry $205 $205 $0
Minnesota Dry $200 $200 $0
Missouri Dry $230 $220 $10
Ohio Dry $205 $205 $0
South Dakota Dry $205 $205 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $184 $184 $0
Wet $75 $75 $0
Illinois Dry $212 $212 $0
Nebraska Dry $177 $177 $0
Wet $75 $75 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $205 $205 $0
Indiana Dry $200 $200 $0
Iowa Dry $195 $190 $5
Michigan Dry $200 $200 $0
Minnesota Dry $190 $190 $0
Nebraska Dry $210 $195 $15
New York Dry $240 $225 $15
North Dakota Dry $210 $190 $20
Ohio Dry $200 $200 $0
South Dakota Dry $185 $180 $5
Wisconsin Dry $190 $185 $5
Valero Energy Corp, San Antonio, Texas
Indiana Dry $208 $208 $0
Iowa Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
Ohio Dry $197 $197 $0
South Dakota Dry $0 $0 $0
California Dry $0 $0 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $270 $275 -$5
*Prices listed per ton.
Weekly Average $203 $202 $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 12/10/2020 $4.2025 $150.09
Soybean Meal 12/10/2020 $381.00
DDG Weekly Average Spot Price $203.00
DDG Value Relative to: 12/10 12/3
Corn 135.25% 133.87%
Soybean Meal 53.28% 51.43%
Cost Per Unit of Protein:
DDG $7.52 $7.48
Soybean Meal $8.02 $8.27
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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