Market Matters Blog

DTN Weekly Average DDG Price Turns Higher

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 July 1 was $4 higher on average versus one week ago. (DTN file photo)

OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended July 1 was $182 per ton, up $4 from one week ago. DDG turned higher due in part to higher soymeal prices and the cash corn price hitting limit up Wednesday following bullish June 30 USDA acreage and stocks reports. The DTN National Corn Index on July 1 is 44 cents higher from one week ago.

Wednesday's Energy Information Administration report showed domestic ethanol inventories increased a fifth straight week as of June 25 as another week of higher production offset an increase in demand. Domestic ethanol plant production rose 10,000 barrels per day (bpd) to 1.058 million bpd while the four-week average output was at 1.050 million bpd, up 6,000 bpd from the four-week average the prior week.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended July 1 was 70.80% versus the three-year average of 110%. The value of DDG relative to soybean meal was 47.67% versus the three-year average of 42%. The cost per unit of protein for DDG was $6.74, compared to the cost per unit of protein for soybean meal at $8.04.

In their weekly DDGS export price update, the U.S. Grains Council said, "DDGS values on the export market are sharply higher this week with Barge CIF NOLA and FOB NOLA offers up $20 metric ton (mt) for spot shipment. U.S. rail rates are steady/$2 higher this week. Despite the rally in FOB offers, prices for 40-foot containers to Southeast Asia are mostly lower this week, falling $11 to $309/mt, on average. Exporters report steady interest from Asian buyers but only small volumes being traded."

The U.S. Census Bureau said Friday that U.S. exports of DDGS totaled 1,044,067 mt in May, up from 862,736 mt in April and up 68% from a year ago. Mexico was the top destination in May, taking 24% of U.S. exports and was followed by Vietnam and South Korea. In the first five months of 2021, U.S. exports of DDGS are up 9% from a year ago.

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 7/1/2021 6/24/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $185 $175 $10
Wet $95 $92 $3
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $190 $180 $10
Wet $95 $85 $10
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $185 $185 $0
Indiana Dry $175 $175 $0
Iowa Dry $175 $180 -$5
Michigan Dry $175 $175 $0
Minnesota Dry $165 $165 $0
North Dakota Dry $160 $160 $0
New York Dry $210 $210 $0
South Dakota Dry $165 $165 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $190 $185 $5
Iowa Dry $185 $185 $0
Michigan Dry $195 $190 $5
Minnesota Dry $185 $185 $0
Missouri Dry $195 $190 $5
Ohio Dry $190 $185 $5
South Dakota Dry $185 $180 $5
Nebraska Dry $170 $170 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $189 $190 -$1
Wet $70 $75 -$5
Illinois Dry $195 $190 $5
Nebraska Dry $180 $190 -$10
Wet $70 $75 -$5
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $185 $175 $10
Indiana Dry $190 $180 $10
Iowa Dry $172 $165 $7
Michigan Dry $190 $180 $10
Minnesota Dry $175 $165 $10
Nebraska Dry $158 $155 $3
New York Dry $235 $225 $10
North Dakota Dry $190 $175 $15
Ohio Dry $205 $195 $10
South Dakota Dry $175 $160 $15
Wisconsin Dry $180 $170 $10
Valero Energy Corp, San Antonio, Texas
Indiana
Iowa
Minnesota
Nebraska
Ohio
South Dakota
Western Milling, Goshen, California (559-302-1074)
California Dry $255 $255 $0
*Prices listed per ton.
Weekly Average $182 $178 $4
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 7/1/2021 $7.1975 $257.05
Soybean Meal 7/1/2021 $381.80
DDG Weekly Average Spot Price $182.00
DDG Value Relative to: 7/1 6/24
Corn 70.82% 76.29%
Soybean Meal 47.67% 51.47%
Cost Per Unit of Protein:
DDG $6.74 $6.59
Soybean Meal $8.04 $7.28
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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