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 15 was $3 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 15 was $170 per ton, down $3 from one week ago.

While weekly DDG prices were steady to lower, prices seem to be stabilizing for now as the cash corn market has turned higher and soybean meal prices have increased as well. The DTN National Corn Index was 30 cents higher versus one week ago, and cash soybean meal prices have increased $5 to $10 on average versus last week.

Wednesday's Energy Information Administration report showed domestic ethanol plant production fell for the first time in four weeks, dropping 26,000 barrels per day (bpd) or 2.4% to 1.041 million bpd, as some plants are in summer maintenance. Four-week average output was at 1.053 million bpd, up 4,000 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 15 was 84.36% versus the three-year average of 110%. The value of DDG relative to soybean meal was 46.87% versus the three-year average of 42%. The cost per unit of protein for DDG was $6.30, compared to the cost per unit of protein for soybean meal at $7.64.

In their weekly DDGS export price update, the U.S. Grains Council said, "Barge CIF New Orleans, Louisiana, (NOLA) and FOB NOLA DDGS prices are higher this week, with greater strength noted for October/November/December position. August and September FOB NOLA offers are up $7-8/MT this week while barge rates are steady/$3/MT higher, increasing netbacks to those with river access. U.S. rail rates are mixed but generally $5/MT higher. Offers for 40-foot containers to Southeast Asia are down $5-7/MT this week, though sources note an increasingly wide difference between the high and low offers."

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 7/15/2021 7/8/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $190 $185 $5
Wet $98 $95 $3
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $180 $175 $5
Wet $80 $80 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $175 $175 $0
Indiana Dry $160 $165 -$5
Iowa Dry $160 $165 -$5
Michigan Dry $160 $165 -$5
Minnesota Dry $160 $165 -$5
North Dakota Dry $155 $160 -$5
New York Dry $195 $200 -$5
South Dakota Dry $160 $165 -$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $165 $175 -$10
Iowa Dry $180 $175 $5
Michigan Dry $170 $180 -$10
Minnesota Dry $180 $175 $5
Missouri Dry $180 $190 -$10
Ohio Dry $165 $175 -$10
South Dakota Dry $175 $185 -$10
Nebraska Dry $165 $170 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $170 $180 -$10
Wet $65 $70 -$5
Illinois Dry $185 $195 -$10
Nebraska Dry $170 $180 -$10
Wet $65 $70 -$5
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $160 $160 $0
Indiana Dry $170 $170 $0
Iowa Dry $165 $165 $0
Michigan Dry $170 $170 $0
Minnesota Dry $165 $165 $0
Nebraska Dry $158 $155 $3
New York Dry $214 $214 $0
North Dakota Dry $190 $195 -$5
Ohio Dry $170 $170 $0
South Dakota Dry $180 $178 $2
Wisconsin Dry $170 $170 $0
Valero Energy Corp, San Antonio, Texas
Indiana
Iowa
Minnesota
Nebraska
Ohio
South Dakota
Western Milling, Goshen, California (559-302-1074)
California Dry $250 $245 $5
*Prices listed per ton.
Weekly Average $170 $173 -$3
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 7/15/2021 $5.6425 $201.52
Soybean Meal 7/15/2021 $362.70
DDG Weekly Average Spot Price $170.00
DDG Value Relative to: 7/1 7/1
Corn 84.36% 75.92%
Soybean Meal 46.87% 48.70%
Cost Per Unit of Protein:
DDG $6.30 $6.41
Soybean Meal $7.64 $7.48
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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