Market Matters Blog
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 March 31 was $222 per ton, up $12 from one week ago.
DDG prices were higher Thursday after the corn market closed limit up, 25 cents, Wednesday after USDA surprised the market by reporting lower-than-expected estimates of plantings and March 1 corn stocks. Remember to check with buyers for the most current prices given the market volatility.
Wednesday's Energy Information Administration report showed overall ethanol plant production rebounded, up 43,000 barrels per day (bpd) or 5% to 965,000 bpd, 15% more than the same time in 2020. Four-week average output at 949,000 bpd was 32,000 bpd lower than the corresponding four weeks in 2020.
DTN Refined Fuels reported ADM announced on April 1 they were planning to restart production at Vantage Corn Processors dry mills in Cedar Rapids, Iowa, and Columbus, Nebraska, in part due to stronger demand for domestic ethanol.
"We've been carefully monitoring a wide variety of industry ethanol conditions, and in recent weeks, we've seen consistent signs point to accelerating demand for domestic ethanol. Inventories across the industry are steadily coming down, China is importing volumes, we continue to expect driving miles to increase as the pace of vaccinations accelerates, and the EPA's support of a strong Renewable Fuel Standard is helping drive great blending economics," the statement read.
ADM said it would begin corn grind immediately with initial ethanol deliveries for customers by mid-April and ramp-up to full rates by late spring to meet spring and summer driving season demand.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended March 31 was 110.16% versus the five-year average of 109%. The value of DDG relative to soybean meal was 52.46% versus the three-year average of 42%. The cost per unit of protein for DDG was $8.22, compared to the cost per unit of protein for soybean meal at $8.91.
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 | 3/31/2021 | 3/25/2021 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $225 | $225 | $0 | |
| Wet | $113 | $113 | $0 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Dry | $220 | $220 | $0 | ||
| Wet | $110 | $110 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $225 | $205 | $20 | |
| Indiana | Dry | $225 | $210 | $15 | |
| Iowa | Dry | $220 | $208 | $12 | |
| Michigan | Dry | $225 | $208 | $17 | |
| Minnesota | Dry | $220 | $200 | $20 | |
| North Dakota | Dry | $220 | $200 | $20 | |
| New York | Dry | $250 | $225 | $25 | |
| South Dakota | Dry | $220 | $200 | $20 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $235 | $215 | $20 | |
| Iowa | Dry | $225 | $205 | $20 | |
| Michigan | Dry | $230 | $210 | $20 | |
| Minnesota | Dry | $225 | $205 | $20 | |
| Missouri | Dry | $255 | $230 | $25 | |
| Ohio | Dry | $230 | $210 | $20 | |
| South Dakota | Dry | $225 | $205 | $20 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $230 | $230 | $0 | |
| Wet | $85 | $85 | $0 | ||
| Illinois | Dry | $227 | $215 | $12 | |
| Nebraska | Dry | $230 | $230 | $0 | |
| Wet | $85 | $85 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $215 | $205 | $10 | |
| Indiana | Dry | $215 | $205 | $10 | |
| Iowa | Dry | $205 | $200 | $5 | |
| Michigan | Dry | $210 | $210 | $0 | |
| Minnesota | Dry | $210 | $205 | $5 | |
| Nebraska | Dry | $210 | $225 | -$15 | |
| New York | Dry | $240 | $240 | $0 | |
| North Dakota | Dry | $210 | $210 | $0 | |
| Ohio | Dry | $210 | $210 | $0 | |
| South Dakota | Dry | $200 | $200 | $0 | |
| Wisconsin | Dry | $205 | $200 | $5 | |
| Valero Energy Corp, San Antonio, Texas | |||||
| Indiana | Dry | $230 | $200 | $30 | |
| Iowa | Dry | $0 | $0 | $0 | |
| Minnesota | Dry | $0 | $0 | $0 | |
| Nebraska | Dry | $0 | $0 | $0 | |
| Ohio | Dry | $240 | $210 | $30 | |
| South Dakota | Dry | $0 | $0 | $0 | |
| California | Dry | $0 | $0 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $285 | $279 | $6 | |
| *Prices listed per ton. | |||||
| Weekly Average | $222 | $210 | $12 | ||
| 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 | 3/31/2021 | $5.6425 | $201.52 |
| Soybean Meal | 3/31/2021 | $423.20 | |
| DDG Weekly Average Spot Price | $222.00 | ||
| DDG Value Relative to: | 3/31 | 3/25 | |
| Corn | 110.16% | 107.59% | |
| Soybean Meal | 52.46% | 51.90% | |
| Cost Per Unit of Protein: | |||
| DDG | $8.22 | $7.78 | |
| Soybean Meal | $8.91 | $8.52 | |
| 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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