Market Matters Blog

DTN Weekly Average 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 July 8 was $9 lower 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 8 was $173 per ton, down $9 from one week ago.

DDG turned lower as the cash corn market fell apart this week, starting with Tuesday's limit-down move. Weather is taking center stage for the corn market as favorable rains have been covering much of the U.S. Corn Belt during the past seven days. The DTN National Corn Index on July 8 is 71 cents lower from one week ago.

Wednesday's Energy Information Administration report showed Domestic ethanol plant production continued higher for a third week, up 9,000 barrels per day (bpd) to 1.067 million bpd, matching the output rate for the week ended June 4, which was the highest production rate since the end of February 2020. The four-week-average output was at 1.049 million bpd, down 1,000 bpd from the four-week average the prior week. A merchandiser told DTN that the increase in plant production is adding more DDG supply to the market amid slow spot demand.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended July 8 was 75.92% versus the three-year average of 110%. The value of DDG relative to soybean meal was 48.70% versus the three-year average of 42%. The cost per unit of protein for DDG was $6.41, compared to the cost per unit of protein for soybean meal at $7.48.

In their weekly DDGS export price update, the U.S. Grains Council said, "DDGS values on the export market are giving back some of last week's gains, and exporters report quiet international interest this week due to Monday's U.S. holiday. Barge CIF NOLA rates are down $30-$36 per metric ton (mt) for spot positions while FOB Gulf offers are down $35-$40/mt. Offers for 40-foot containers to Southeast Asia are finding better support this week, however, down just $2/mt on average at $307/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 7/8/2021 7/1/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $185 $185 $0
Wet $95 $95 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $175 $190 -$15
Wet $80 $95 -$15
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $175 $185 -$10
Indiana Dry $165 $175 -$10
Iowa Dry $165 $175 -$10
Michigan Dry $165 $175 -$10
Minnesota Dry $165 $165 $0
North Dakota Dry $160 $160 $0
New York Dry $200 $210 -$10
South Dakota Dry $165 $165 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $175 $190 -$15
Iowa Dry $175 $185 -$10
Michigan Dry $180 $195 -$15
Minnesota Dry $175 $185 -$10
Missouri Dry $190 $195 -$5
Ohio Dry $175 $190 -$15
South Dakota Dry $185 $185 $0
Nebraska Dry $170 $170 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $180 $180 $0
Wet $70 $70 $0
Illinois Dry $195 $195 $0
Nebraska Dry $180 $180 $0
Wet $70 $70 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $160 $185 -$25
Indiana Dry $170 $190 -$20
Iowa Dry $165 $172 -$7
Michigan Dry $170 $190 -$20
Minnesota Dry $165 $175 -$10
Nebraska Dry $155 $158 -$3
New York Dry $214 $235 -$21
North Dakota Dry $195 $190 $5
Ohio Dry $170 $205 -$35
South Dakota Dry $178 $175 $3
Wisconsin Dry $170 $180 -$10
Valero Energy Corp, San Antonio, Texas
Indiana
Iowa
Minnesota
Nebraska
Ohio
South Dakota
Western Milling, Goshen, California (559-302-1074)
California Dry $245 $255 -$10
*Prices listed per ton.
Weekly Average $173 $182 -$9
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 7/8/2021 $6.3800 $227.86
Soybean Meal 7/8/2021 $355.30
DDG Weekly Average Spot Price $173.00
DDG Value Relative to: 7/1 7/1
Corn 75.92% 70.82%
Soybean Meal 48.70% 47.67%
Cost Per Unit of Protein:
DDG $6.41 $6.74
Soybean Meal $7.48 $8.04
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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