Market Matters Blog
Extreme Cold Drives DTN Weekly Average DDG Price 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 Feb. 18 was $240 per ton, up $5 on average from one week ago.
DDG prices moved higher as rail, truck and river logistics continue to be plagued by recent snowstorms and extreme cold over much of the U.S.; some plants were short on supply due to slower run times. Merchandisers in California and parts of the Midwest said they can't get rail cars as the cold weather is severely affecting rail movement.
The Energy Information Administration reported at midweek that overall ethanol plant production for the week ended Feb. 12 slid 26,000 barrels per day (bpd) in the week profiled to 911,000 bpd, the lowest level since the final week of September 2020 and 12.4% lower than the corresponding week in 2020. Four-week average output dropped 116,000 bpd against year ago to 929,000 bpd. Expect another drop in production to be reported for this week as plants struggle through the cold weather and extremely high natural gas prices.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Feb. 18 was 122.13% versus the five-year average of 109%. The value of DDG relative to soybean meal was 56.35% versus the three-year average of 42%. The cost per unit of protein for DDG was $8.89, compared to the cost per unit of protein for soybean meal at $8.97.
In their weekly export DDGS update, the U.S. Grains Council noted merchandisers report domestic and international customers are waiting to see how natural gas curtailments will impact ethanol production and DDGS supplies before booking. "Trade is reported as "coming in waves" this week, with flurries of activity followed by quiet markets. The barge market has reportedly been volatile this week with early-week panic buying giving way to softer trade Wednesday afternoon and Thursday. Reasons for the lower late-week trade include more favorable weather forecasts and greater barge availability. As of Thursday afternoon, Barge CIF NOLA values are up $2 metric ton (mt) for March but down $4 to $5 mt for April/May. FOB NOLA offers are up $13 mt for March at $337 with April/May up $1 to $6 mt," said USGC.
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 | 2/18/2021 | 2/11/2021 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $260 | $250 | $10 | |
| Wet | $133 | $125 | $8 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Out for a few weeks | Dry | $0 | $0 | $0 | |
| Wet | $0 | $0 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $245 | $240 | $5 | |
| Indiana | Dry | $235 | $235 | $0 | |
| Iowa | Dry | $235 | $230 | $5 | |
| Michigan | Dry | $235 | $235 | $0 | |
| Minnesota | Dry | $225 | $225 | $0 | |
| North Dakota | Dry | $225 | $225 | $0 | |
| New York | Dry | $300 | $295 | $5 | |
| South Dakota | Dry | $225 | $220 | $5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $245 | $240 | $5 | |
| Iowa | Dry | $250 | $225 | $25 | |
| Michigan | Dry | $245 | $240 | $5 | |
| Minnesota | Dry | $240 | $220 | $20 | |
| Missouri | Dry | $270 | $260 | $10 | |
| Ohio | Dry | $240 | $235 | $5 | |
| South Dakota | Dry | $260 | $235 | $25 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $243 | $243 | $0 | |
| Wet | $75 | $75 | $0 | ||
| Illinois | Dry | $244 | $244 | $0 | |
| Nebraska | Dry | $243 | $243 | $0 | |
| Wet | $75 | $75 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $240 | $240 | $0 | |
| Indiana | Dry | $240 | $240 | $0 | |
| Iowa | Dry | $230 | $225 | $5 | |
| Michigan | Dry | $235 | $230 | $5 | |
| Minnesota | Dry | $225 | $220 | $5 | |
| Nebraska | Dry | $235 | $235 | $0 | |
| New York | Dry | $285 | $285 | $0 | |
| North Dakota | Dry | $235 | $235 | $0 | |
| Ohio | Dry | $235 | $235 | $0 | |
| South Dakota | Dry | $230 | $230 | $0 | |
| Wisconsin | Dry | $230 | $230 | $0 | |
| Valero Energy Corp, San Antonio, Texas | |||||
| Indiana | Dry | $240 | $240 | $0 | |
| Iowa | Dry | $0 | $0 | $0 | |
| Minnesota | Dry | $0 | $0 | $0 | |
| Nebraska | Dry | $0 | $0 | $0 | |
| Ohio | Dry | $245 | $245 | $0 | |
| South Dakota | Dry | $0 | $0 | $0 | |
| California | Dry | $0 | $0 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $325 | $296 | $29 | |
| *Prices listed per ton. | |||||
| Weekly Average | $240 | $235 | $5 | ||
| 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 | 2/18/2021 | $5.5025 | $196.52 |
| Soybean Meal | 2/18/2021 | $425.90 | |
| DDG Weekly Average Spot Price | $240.00 | ||
| DDG Value Relative to: | 2/18 | 2/11 | |
| Corn | 122.13% | 121.62% | |
| Soybean Meal | 56.35% | 54.79% | |
| Cost Per Unit of Protein: | |||
| DDG | $8.89 | $8.70 | |
| Soybean Meal | $8.97 | $9.03 | |
| 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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