Market Matters Blog

DTN Weekly DDG Price Lower on Average

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's weekly spot price for domestic distillers dried grains during the week ended May 20 was $13 lower on average versus one week ago. (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 May 20 was $232 per ton, down $13 from one week ago.

DDG prices moved lower this week as the corn and soybean meal prices backed off since the last price update. Cash prices for both have been volatile and while corn has recovered a little, soybean meal has fallen lower with the loss in the soybean futures and basis. Merchandisers noted demand for DDG and soybean meal has been strong and more so now with the drop in prices, especially as pasture conditions and haying conditions continue to be dismal in the drought stricken states. Monday's USDA Crop Progress report showed overall average of U.S. pasture and range conditions were rated 19% very poor, 24% poor, 32% fair, 22% good and 2% excellent.

Wednesday's Energy Information Administration report showed overall ethanol plant production held higher, up 53,000 barrels per day (bpd) or 5.4% to 1.032 million bpd, the highest output level since March 13, 2020, while four-week average output was at 977,000 bpd.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended May 20 was 97.76% versus the three-year average of 110%. The value of DDG relative to soybean meal was 57.84% versus the three-year average of 42%. The cost per unit of protein for DDG was $8.59, compared to the cost per unit of protein for soybean meal at $8.44.

In their weekly DDGS export price update, the U.S. Grains Council said, "On the export front, DDGS prices are lower this week. Barge CIF NOLA prices are sharply lower following last Friday's resumption of river navigation along the U.S. Mississippi River. FOB Gulf offers average $305 per metric ton (mt) for June shipment this week, down from $324/mt last week. Prices for 40-foot containers to Southeast Asia are lower this week but have held up better than other markets. Spot offers for containers are down $9/mt this week at $365/mt while summer positions are down $5 to $6/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 5/20/2021 5/14/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $250 $260 -$10
Wet $125 $130 -$5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $230 $250 -$20
Wet $115 $125 -$10
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $240 $245 -$5
Indiana Dry $230 $238 -$8
Iowa Dry $230 $238 -$8
Michigan Dry $230 $235 -$5
Minnesota Dry $225 $235 -$10
North Dakota Dry $220 $230 -$10
New York Dry $250 $270 -$20
South Dakota Dry $220 $235 -$15
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $230 $240 -$10
Iowa Dry $240 $245 -$5
Michigan Dry $240 $240 $0
Minnesota Dry $235 $245 -$10
Missouri Dry $255 $255 $0
Ohio Dry $230 $235 -$5
South Dakota Dry $240 $245 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $250 $270 -$20
Wet $90 $85 $5
Illinois Dry $240 $270 -$30
Nebraska Dry $250 $270 -$20
Wet $90 $85 $5
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $235 $250 -$15
Indiana Dry $230 $250 -$20
Iowa Dry $220 $235 -$15
Michigan Dry $235 $240 -$5
Minnesota Dry $215 $235 -$20
Nebraska Dry $220 $245 -$25
New York Dry $275 $275 $0
North Dakota Dry $220 $240 -$20
Ohio Dry $230 $245 -$15
South Dakota Dry $225 $240 -$15
Wisconsin Dry $220 $240 -$20
Valero Energy Corp, San Antonio, Texas
Indiana Dry $230 $240 -$10
Iowa Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
Ohio Dry $235 $245 -$10
South Dakota Dry $0 $0 $0
California Dry $0 $0 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $300 $330 -$30
*Prices listed per ton.
Weekly Average $232 $245 -$13
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 5/20/2021 $6.6450 $237.32
Soybean Meal 5/20/2021 $401.10
DDG Weekly Average Spot Price $232.00
DDG Value Relative to: 5/20 5/13
Corn 97.76% 95.41%
Soybean Meal 57.84% 57.85%
Cost Per Unit of Protein:
DDG $8.59 $9.07
Soybean Meal $8.44 $8.92
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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