Market Matters Blog

DTN Weekly Average DDG Price Lower Again

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's weekly spot price for domestic distillers dried grains was $7 lower on average versus one week ago during the week ended March 25. (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 25 was $210 per ton, down $7 on average from one week ago.

DDG prices continue to move lower, and some traders feel that maybe prices have seen the bottom. However, even with lower production numbers reported for last week, there are still plenty of supplies to go around amid flat demand.

Wednesday's Energy Information Administration report showed that, overall, ethanol plant production gave back the prior week's hike and then some, falling 49,000 barrels per day (bpd), or 5%, to 922,000 bpd, a three-week low while down 8.3% versus the same time in 2020. Four-week average output at 920,000 bpd was 121,000 bpd, or 11.6%, below the corresponding four weeks in 2020.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended March 25 was 107.59% versus the five-year average of 109%. The value of DDG relative to soybean meal was 51.90% versus the three-year average of 42%. The cost per unit of protein for DDG was $7.78, compared to the cost per unit of protein for soybean meal at $8.52.

In their weekly export DDGS update, the U.S. Grains Council said exports note some business has been done this week, but volumes have not offset the effects of increasing production. "Rising freight rates and a stronger U.S. dollar are developments with which buyers must now contend. Barge CIF New Orleans, Louisiana, (NOLA) offers are down $13 per metric ton (mt) for spot positions but just $4 to $5/mt lower for May-July. FOB NOLA offers have found better support, trading $3 to $5/mt lower and averaging $277/mt for April and May. Prices for 40-foot containers to Southeast Asia are mixed with spot positions down $4/mt while deferred positions are up $1 to $5/mt. The average offer for spot containers reached $334/mt this week."

High water has put much of the Lower Mississippi River in flood stage and safety protocols are in place, slowing loaded barges heading south and empties heading north. The level at Baton Rouge is at 35.85 feet Thursday (flood stage is 35) and expectations are it will stay above minor flood stage into the first week of April. Water levels in the Gulf are rising and are not at flood stage, but rain and storms expected this week will delay operations there.

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 3/25/2021 3/18/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $225 $245 -$20
Wet $113 $123 -$10
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $220 $230 -$10
Wet $110 $115 -$5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $205 $220 -$15
Indiana Dry $210 $220 -$10
Iowa Dry $208 $215 -$7
Michigan Dry $208 $220 -$12
Minnesota Dry $200 $210 -$10
North Dakota Dry $200 $210 -$10
New York Dry $225 $230 -$5
South Dakota Dry $200 $210 -$10
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $215 $215 $0
Iowa Dry $205 $215 -$10
Michigan Dry $210 $215 -$5
Minnesota Dry $205 $210 -$5
Missouri Dry $230 $240 -$10
Ohio Dry $210 $215 -$5
South Dakota Dry $205 $215 -$10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $230 $240 -$10
Wet $85 $85 $0
Illinois Dry $215 $230 -$15
Nebraska Dry $230 $240 -$10
Wet $85 $85 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $205 $210 -$5
Indiana Dry $205 $210 -$5
Iowa Dry $200 $205 -$5
Michigan Dry $210 $210 $0
Minnesota Dry $205 $210 -$5
Nebraska Dry $225 $225 $0
New York Dry $240 $250 -$10
North Dakota Dry $210 $210 $0
Ohio Dry $210 $215 -$5
South Dakota Dry $200 $205 -$5
Wisconsin Dry $200 $210 -$10
Valero Energy Corp, San Antonio, Texas
Indiana Dry $200 $200 $0
Iowa Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
Ohio Dry $210 $210 $0
South Dakota Dry $0 $0 $0
California Dry $0 $0 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $279 $286 -$7
*Prices listed per ton.
Weekly Average $210 $217 -$7
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 3/25/2021 $5.4650 $195.18
Soybean Meal 3/25/2021 $404.60
DDG Weekly Average Spot Price $210.00
DDG Value Relative to: 3/18 3/18
Corn 107.59% 111.18%
Soybean Meal 51.90% 54.50%
Cost Per Unit of Protein:
DDG $7.78 $8.04
Soybean Meal $8.52 $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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