Market Matters Blog

DTN Weekly Average DDG Price Slips Lower

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's weekly spot price for domestic distillers dried grains was $9 lower on average versus one week ago during the week ended March 11. (DTN file photo)

OMAHA (DTN) -- The average price for domestic distillers dried grains (DDG) from the 39 locations DTN contacted with spot offers for the week ended March 11 was $225 per ton, down $9 on average from one week ago.

DDG prices sunk lower as an increase in plant production is helping supplies to increase versus the tight supplies we saw prior to March.

Wednesday's Energy Information Administration report showed overall ethanol plant production continued higher, up 89,000 barrels per day (bpd), or 10.5%, the week profiled to 938,000 bpd, the highest level in seven weeks yet 10.2% lower than the corresponding week in 2020. Four-week average output at 839,000 bpd was down over 20% against year ago.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended March 11 was 113.51% versus the five-year average of 109%. The value of DDG relative to soybean meal was 55.97% versus the three-year average of 42%. The cost per unit of protein for DDG was $8.33, compared to the cost per unit of protein for soybean meal at $8.46.

In their weekly export DDGS update, the U.S. Grains Council said that, "Exporters report a relatively quiet market this week as buyers adjust to new and rising freight prices. Barge CIF NOLA values are down $10 to $12 per metric ton (mt) this week as river logistics normalize while FOB Gulf offers are down $6 to $8/mt. Offers for 40-foot containers to Southeast Asia are spotty but generally firmer this week, with the average rate moving higher to $360/mt."

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 3/11/2021 3/4/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri SUBJECT Dry $260 $260 $0
Wet $130 $130 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
THIS WEEK Dry $250 $250 $0
Wet $125 $125 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $220 $235 -$15
Indiana Dry $220 $230 -$10
Iowa Dry $220 $230 -$10
Michigan Dry $220 $202 $18
Minnesota Dry $215 $220 -$5
North Dakota Dry $210 $225 -$15
New York Dry $240 $270 -$30
South Dakota Dry $215 $220 -$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $220 $240 -$20
Iowa Dry $225 $235 -$10
Michigan Dry $225 $240 -$15
Minnesota Dry $220 $230 -$10
Missouri Dry $245 $260 -$15
Ohio Dry $220 $235 -$15
South Dakota Dry $225 $235 -$10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $243 $243 $0
Wet $85 $75 $10
Illinois Dry $235 $244 -$9
Nebraska Dry $243 $243 $0
Wet $85 $75 $10
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $230 $240 -$10
Indiana Dry $225 $235 -$10
Iowa Dry $215 $225 -$10
Michigan Dry $220 $230 -$10
Minnesota Dry $215 $220 -$5
Nebraska Dry $225 $235 -$10
New York Dry $265 $265 $0
North Dakota Dry $220 $235 -$15
Ohio Dry $225 $230 -$5
South Dakota Dry $215 $225 -$10
Wisconsin Dry $220 $225 -$5
Valero Energy Corp, San Antonio, Texas
Indiana Dry $210 $230 -$20
Iowa Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
Ohio Dry $220 $235 -$15
South Dakota Dry $0 $0 $0
California Dry $0 $0 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $300 $310 -$10
*Prices listed per ton.
Weekly Average $225 $234 -$9
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 3/11/2021 $5.5500 $198.21
Soybean Meal 3/11/2021 $402.00
DDG Weekly Average Spot Price $225.00
DDG Value Relative to: 3/11 3/4
Corn 113.51% 119.94%
Soybean Meal 55.97% 55.97%
Cost Per Unit of Protein:
DDG $8.33 $8.67
Soybean Meal $8.46 $8.80
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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