Market Matters Blog

DTN Average Weekly DDG Price Lower

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 June 3 was $7 lower on average versus one week ago. (DTN file photo)

OMAHA (DTN) -- The average price for domestic distillers dried grains (DDG) from the 40 locations DTN contacted with spot offers for the week ended June 3 was $211 per ton, down $7 from one week ago.

DDG prices moved lower again as run rates at plants increase. While domestic demand is still good, the extra product from higher run rates needs to move so it doesn't build up, noted a merchandiser. Adding pressure to DDG prices is the weaker soymeal futures and hence cheaper cash meal price.

Wednesday's Energy Information Administration report showed overall ethanol plant production for the week ended May 28 increased 23,000 barrels per day (bpd) or 2.3% to 1.034 million bpd, the highest level since the week ended March 13, 2020.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended June 3 was 89.24% versus the three-year average of 110%. The value of DDG relative to soybean meal was 53.88% versus the three-year average of 42%. The cost per unit of protein for DDG was $7.81, compared to the cost per unit of protein for soybean meal at $8.24.

In their weekly DDGS export price update, the U.S. Grains Council said, "On the export front, DDGS prices are mixed this week. Barge CIF NOLA prices down $4 to $5 metric ton (mt) while FOB Gulf offers are steady/up $2 mt at $274 mt for July shipment. Prices for 40-foot containers to Southeast Asia are down $18 mt with offers averaging $352 mt this week."

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 6/3/2021 5/27/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $220 $240 -$20
Wet $110 $120 -$10
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $215 $215 $0
Wet $105 $105 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $210 $210 $0
Indiana Dry $210 $210 $0
Iowa Dry $210 $215 -$5
Michigan Dry $210 $210 $0
Minnesota Dry $200 $210 -$10
North Dakota Dry $200 $210 -$10
New York Dry $235 $235 $0
South Dakota Dry $205 $205 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $215 $220 -$5
Iowa Dry $220 $220 $0
Michigan Dry $215 $225 -$10
Minnesota Dry $215 $215 $0
Missouri Dry $235 $235 $0
Ohio Dry $220 $220 $0
South Dakota Dry $210 $220 -$10
Nebraska Dry $210 $210 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $245 $245 $0
Wet $90 $90 $0
Illinois Dry $220 $230 -$10
Nebraska Dry $245 $245 $0
Wet $90 $90 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $205 $220 -$15
Indiana Dry $208 $220 -$12
Iowa Dry $200 $205 -$5
Michigan Dry $205 $220 -$15
Minnesota Dry $195 $200 -$5
Nebraska Dry $190 $205 -$15
New York Dry $255 $270 -$15
North Dakota Dry $205 $200 $5
Ohio Dry $205 $210 -$5
South Dakota Dry $195 $200 -$5
Wisconsin Dry $195 $200 -$5
Valero Energy Corp, San Antonio, Texas
Indiana Dry $200 $230 -$30
Iowa Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
Ohio Dry $210 $235 -$25
South Dakota Dry $0 $0 $0
California Dry $0 $0 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $285 $300 -$15
*Prices listed per ton.
Weekly Average $211 $218 -$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 6/3/2021 $6.6200 $236.43
Soybean Meal 6/3/2021 $391.60
DDG Weekly Average Spot Price $211.00
DDG Value Relative to: 6/3 5/27
Corn 89.24% 91.86%
Soybean Meal 53.88% 55.85%
Cost Per Unit of Protein:
DDG $7.81 $8.07
Soybean Meal $8.24 $8.22
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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