Market Matters Blog
DTN Weekly Average DDG Price Slightly Lower
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. 25 was $239 per ton, down $1 on average from one week ago.
DDG prices were mixed as truck, rail and river logistic problems have started to ease and warmer weather has been helping plants recover from the recent extreme cold that negatively affected production and thus caused tight DDG supplies. As expected, Wednesday's Energy Information Administration report showed overall ethanol plant production plummeted 253,000 barrels per day (bpd) in the week profiled to 658,000 bpd, the lowest level since May 8, 2020, while 37.6% lower than the corresponding week in 2020. Four-week average output dropped 192,000 bpd against a year ago to 860,000 bpd.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Feb. 25 was 120.63% 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 $8.85, compared to the cost per unit of protein for soybean meal at $8.93.
In their weekly export DDGS update, the U.S. Grains Council noted merchandisers and brokers report that export business has been slower this week with notable pressure in the CIF market. "Spot offers for barges CIF NOLA are down $17 per metric ton (MT) this week while FOB Gulf offers are down $14/MT for March and down $3-5/MT for second quarter positions. Brokers again note the bid/ask spread has been wide this week with wide-ranging traded prices."
NOTE: All prices listed below can change at any time and are subject to confirmation from seller.
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | CURRENT | CHANGE | ||
| COMPANY | STATE | 2/25/2021 | 2/18/2021 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $263 | $260 | $3 | |
| Wet | $132 | $133 | -$1 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| W/O March 8 | Dry | $250 | $0 | $0 | |
| Wet | $125 | $0 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $240 | $245 | -$5 | |
| Indiana | Dry | $235 | $235 | $0 | |
| Iowa | Dry | $235 | $235 | $0 | |
| Michigan | Dry | $232 | $235 | -$3 | |
| Minnesota | Dry | $230 | $225 | $5 | |
| North Dakota | Dry | $225 | $225 | $0 | |
| New York | Dry | $275 | $300 | -$25 | |
| South Dakota | Dry | $230 | $225 | $5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $245 | $245 | $0 | |
| Iowa | Dry | $240 | $250 | -$10 | |
| Michigan | Dry | $245 | $245 | $0 | |
| Minnesota | Dry | $235 | $240 | -$5 | |
| Missouri | Dry | $270 | $270 | $0 | |
| Ohio | Dry | $240 | $240 | $0 | |
| South Dakota | Dry | $250 | $260 | -$10 | |
| 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 | $230 | $0 | |
| Michigan | Dry | $235 | $235 | $0 | |
| Minnesota | Dry | $225 | $225 | $0 | |
| 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 | $315 | $325 | -$10 | |
| *Prices listed per ton. | |||||
| Weekly Average | $239 | $240 | -$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 | 2/25/2021 | $5.5475 | $198.13 |
| Soybean Meal | 2/25/2021 | $424.10 | |
| DDG Weekly Average Spot Price | $239.00 | ||
| DDG Value Relative to: | 2/25 | 2/18 | |
| Corn | 120.63% | 122.13% | |
| Soybean Meal | 56.35% | 56.35% | |
| Cost Per Unit of Protein: | |||
| DDG | $8.85 | $8.89 | |
| Soybean Meal | $8.93 | $8.97 | |
| 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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