Market Matters Blog
DTN Weekly Average DDG Price Climbs Higher
OMAHA (DTN) The average price for domestic distillers dried grains (DDG) from the 39 locations DTN contacted with spot offers for the week ended Jan. 14 was $230 per ton, up $14 from one week ago. DDG prices were sharply higher again this past week after the cash price of corn shot up after Wednesday's bullish USDA reports. Given that prices for all proteins continue to rise, DDG high prices are defensible to remain in inclusion rates.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 14 was 120.54%, versus the 5-year average of 109%. The value of DDG relative to soybean meal was 49.57% versus the 3-year average of 42%. The cost per unit of protein for DDG was $8.52, compared to the cost per unit of protein for soybean meal at $9.79.
In their weekly export DDGS update, the U.S. Grains Council noted some sources saying international buyers are now playing catch-up to the current price rally and are booking some needs, but hoping for prices to come down. Sellers are confident the rally will continue and are defending asking prices. "Barge CIF NOLA offers are $15 to $16/metric ton (mt) higher this week while FOB NOLA offers are up $20/mt. U.S. rail rates continue to strengthen as well, essentially matching the barge market's gains. Offers for 40-foot containers to Southeast Asia are up $16/mt on average, though some routes are trading as much as $21/mt higher. The average offers for containerized DDGS to Southeast Asia are $350/mt for February/March/April shipment."
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 | 1/14/2021 | 1/7/2021 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $253 | $235 | $18 | |
| Wet | $127 | $118 | $9 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri | Dry | $250 | $250 | $0 | |
| Wet | $125 | $125 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $215 | $215 | $0 | |
| Indiana | Dry | $205 | $205 | $0 | |
| Iowa | Dry | $225 | $210 | $15 | |
| Michigan | Dry | $205 | $205 | $0 | |
| Minnesota | Dry | $225 | $215 | $10 | |
| North Dakota | Dry | $225 | $205 | $20 | |
| New York | Dry | $285 | $230 | $55 | |
| South Dakota | Dry | $225 | $215 | $10 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $235 | $215 | $20 | |
| Iowa | Dry | $225 | $212 | $13 | |
| Michigan | Dry | $235 | $215 | $20 | |
| Minnesota | Dry | $220 | $207 | $13 | |
| Missouri | Dry | $260 | $250 | $10 | |
| Ohio | Dry | $230 | $210 | $20 | |
| South Dakota | Dry | $228 | $212 | $16 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $230 | $225 | $5 | |
| Wet | $75 | $75 | $0 | ||
| Illinois | Dry | $235 | $223 | $12 | |
| Nebraska | Dry | $225 | $220 | $5 | |
| Wet | $75 | $75 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $230 | $215 | $15 | |
| Indiana | Dry | $230 | $215 | $15 | |
| Iowa | Dry | $220 | $205 | $15 | |
| Michigan | Dry | $225 | $210 | $15 | |
| Minnesota | Dry | $225 | $210 | $15 | |
| Nebraska | Dry | $240 | $225 | $15 | |
| New York | Dry | $290 | $275 | $15 | |
| North Dakota | Dry | $235 | $220 | $15 | |
| Ohio | Dry | $225 | $210 | $15 | |
| South Dakota | Dry | $225 | $210 | $15 | |
| Wisconsin | Dry | $220 | $205 | $15 | |
| Valero Energy Corp, San Antonio, Texas | |||||
| Indiana | Dry | $250 | $220 | $30 | |
| Iowa | Dry | $0 | $0 | $0 | |
| Minnesota | Dry | $0 | $0 | $0 | |
| Nebraska | Dry | $0 | $0 | $0 | |
| Ohio | Dry | $250 | $215 | $35 | |
| South Dakota | Dry | $0 | $0 | $0 | |
| California | Dry | $0 | $0 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $300 | $290 | $10 | |
| *Prices listed per ton. | |||||
| Weekly Average | $230 | $216 | $14 | ||
| 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 | 1/14/2021 | $5.3425 | $190.80 |
| Soybean Meal | 1/14/2021 | $464.90 | |
| DDG Weekly Average Spot Price | $230.00 | ||
| DDG Value Relative to: | 1/14 | 1/7 | |
| Corn | 120.54% | 122.99% | |
| Soybean Meal | 49.57% | 49.54% | |
| Cost Per Unit of Protein: | |||
| DDG | $8.52 | $8.04 | |
| Soybean Meal | $9.79 | $9.22 | |
| 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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