Market Matters Blog

DTN Weekly DDG Price 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 2 cents higher on average for the week ended Dec. 23. (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. 23 was $205 per ton. DDG prices this week were trending higher heading into the Christmas and New Year's holiday week. Merchandisers report the prices are firm due to tight supplies and the continued rise in soymeal prices. Cash soymeal prices are up an average of $26 to $28 per ton in the Midwest versus one week ago.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Dec. 23 was 128.34%, versus the 5-year average of 109%. The value of DDG relative to soybean meal was 48.67% versus the 3-year average of 42%. The cost per unit of protein for DDG was $7.59, compared to the cost per unit of protein for soybean meal at $8.87.

The Energy Information Administration reported Wednesday that total domestic ethanol inventories were higher for an eighth straight week for the week ended Dec. 18, rising to a 30-week high on overall weak demand and a 2% hike in production. Ethanol plant production moved off a 7-week low, up 19,000 barrels per day (bpd) to 976,000 bpd, 10% lower than the corresponding week in 2019. Four-week average output dropped 96,000 bpd against year ago to 974,000 bpd.

Some export shippers are still experiencing container shortages as U.S. Grains Council noted last week that continued container market logistics issues pushed barge CIF NOLA prices down $4/metric ton (mt) for January positions. Read my Market Matters blog entry from this week about ag exporters requesting official action from the Federal Maritime Commission (FMC) to investigate denied and canceled container bookings among other serious issues affecting their ability to ship ag commodities such as DDGS.

https://www.dtnpf.com/…

NOTE: All prices listed below can change at any time and are subject to confirmation from seller. These prices reflect the week ending 12-23; there will be no report for the week ending 12-30 so for updates/changes call the seller.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 12/23/2020 12/17/2020
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $235 $230 $5
Wet $118 $115 $3
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 $205 $200 $5
Indiana Dry $198 $198 $0
Iowa Dry $195 $198 -$3
Michigan Dry $198 $198 $0
Minnesota Dry $200 $200 $0
North Dakota Dry $195 $195 $0
New York Dry $225 $225 $0
South Dakota Dry $200 $200 $0
E Energy Adams, Adams, Nebraska
Adams SUBJECT Dry $225 $225 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $205 $200 $5
Iowa Dry $205 $200 $5
Michigan Dry $205 $200 $5
Minnesota Dry $200 $200 $0
Missouri Dry $245 $240 $5
Ohio Dry $205 $200 $5
South Dakota Dry $205 $200 $5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $184 $184 $0
Wet $75 $75 $0
Illinois JANUARY Dry $210 $207 $3
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 $195 $0
Michigan Dry $200 $200 $0
Minnesota Dry $195 $195 $0
Nebraska Dry $210 $210 $0
New York Dry $240 $240 $0
North Dakota Dry $210 $210 $0
Ohio Dry $200 $200 $0
South Dakota Dry $190 $190 $0
Wisconsin Dry $190 $190 $0
Valero Energy Corp, San Antonio, Texas
Indiana Dry $220 $208 $12
Iowa Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
Ohio Dry $215 $197 $18
South Dakota Dry $0 $0
California Dry $0 $0 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $280 $265 $15
*Prices listed per ton.
Weekly Average $205 $203 $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 12/23/2020 $4.4725 $159.73
Soybean Meal 12/23/2020 $421.20
DDG Weekly Average Spot Price $205.00
DDG Value Relative to: 12/23 12/17
Corn 128.34% 131.42%
Soybean Meal 48.67% 51.02%
Cost Per Unit of Protein:
DDG $7.59 $7.52
Soybean Meal $8.87 $8.38
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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