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 22 was $7 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 22 was $177 per ton, up $7 from one week ago. Prices turned the corner finally and moved higher on average as the cash corn price is nearly unchanged versus last week, while cash soybean meal is slightly higher than last week. The demand in the export market this past week is also helping DDG prices firm.

Wednesday's Energy Information Administration report showed domestic ethanol plant production fell for a second week, falling 13,000 barrels per day (bpd) or 1.2% to a five-week low 1.028 million bpd. Four-week average output was at 1.048 million bpd, down 5,000 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 22 was 87.79% versus the three-year average of 110%. The value of DDG relative to soybean meal was 48.73% versus the three-year average of 42%. The cost per unit of protein for DDG was $6.56, compared to the cost per unit of protein for soybean meal at $7.65.

In their weekly DDGS export price update, the U.S. Grains Council said, "Export demand for DDGS has picked up this week with Barge CIF NOLA offers up $10 metric ton (mt) and FOB Gulf offers up $16/mt for August shipment and up $10-13/mt for deferred positions. August DDGS are offered at $236/mt this week with October/November offers near $265/mt. The Southeast Asia market has been active with early-week trades in the low $300s supporting offers. Offers for 40-foot containers for shipment to Southeast Asia are up $11/mt this week at $311."

NOTE: All prices listed below can change at any time and are subject to confirmation from seller.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT CURRENT CHANGE
COMPANY STATE 7/22/2021 7/15/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $190 $190 $0
Wet $98 $98 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $190 $180 $10
Wet $80 $80 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $185 $175 $10
Indiana Dry $165 $160 $5
Iowa Dry $170 $160 $10
Michigan Dry $170 $160 $10
Minnesota Dry $168 $160 $8
North Dakota Dry $175 $155 $20
New York Dry $190 $195 -$5
South Dakota Dry $175 $160 $15
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $175 $165 $10
Iowa Dry $180 $180 $0
Michigan Dry $175 $170 $5
Minnesota Dry $180 $180 $0
Missouri Dry $190 $180 $10
Ohio Dry $175 $165 $10
South Dakota Dry $180 $175 $5
Nebraska Dry $180 $165 $15
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $170 $170 $0
Wet $65 $65 $0
Illinois Dry $185 $185 $0
Nebraska Dry $170 $170 $0
Wet $65 $65 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $165 $160 $5
Indiana Dry $175 $170 $5
Iowa Dry $165 $165 $0
Michigan Dry $175 $170 $5
Minnesota Dry $170 $165 $5
Nebraska Dry $165 $158 $7
New York Dry $220 $214 $6
North Dakota Dry $200 $190 $10
Ohio Dry $175 $170 $5
South Dakota Dry $185 $180 $5
Wisconsin Dry $174 $170 $4
Valero Energy Corp, San Antonio, Texas
Indiana
Iowa
Minnesota
Nebraska
Ohio
South Dakota
Western Milling, Goshen, California (559-302-1074)
California Dry $255 $250 $5
*Prices listed per ton.
Weekly Average $177 $170 $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 7/22/2021 $5.6450 $201.61
Soybean Meal 7/22/2021 $363.20
DDG Weekly Average Spot Price $177.00
DDG Value Relative to: 7/22 7/15
Corn 87.79% 84.36%
Soybean Meal 48.73% 46.87%
Cost Per Unit of Protein:
DDG $6.56 $6.30
Soybean Meal $7.65 $7.64
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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