OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Aug. 5 was $186 per ton, up $4 from one week ago.
Prices moved higher again this week as soybean meal and other protein feed prices have been moving higher, even as the cash corn price has moved lower. The DTN National Corn Index was down 8 cents versus one week ago, while basis has been a mixed bag depending on who needs to buy old-crop corn nearby.
Wednesday's Energy Information Administration report showed domestic ethanol plant production was down a fourth week, though only slightly, with a dip of 1,000 barrels per day (bpd) to a 10-week low 1.013 million bpd. Four-week average output was at 1.024 million bpd, down 13,000 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 Aug. 5 was 93.71% versus the three-year average of 112%. The value of DDG relative to soybean meal was 52.11%, and the cost per unit of protein for DDG was $6.89, compared to the cost per unit of protein for soybean meal at $7.51.
In their weekly DDGS export price update, the U.S. Grains Council said: "Export demand for DDGS has been quieter this week following the market's recent pricing strength. Buyers were active the past few weeks on the break in DDGS prices and as the supply outlook for world feed grains tightened. Now, the DDGS market is turning sideways, and barge CIF NOLA offers are down $2-$5 per metric ton (mt) for August/September shipment. FOB Gulf offers are steady/down $3 this week for nearby positions while deferred shipments are trading higher. Lingering tightness in the container market is supporting prices, with offers for 40-foot containers to Southeast Asia up $1-$5/mt this week. The average price for containerized DDGS to Southeast Asia is $324/mt for September shipment. Industry sources note that some exporters are pulling offers for product into Hai Phong, Vietnam, due to congestion at a transshipment port."
The U.S. Census Bureau said Thursday that U.S. exports of DDGS totaled 939,177 mt in June, down from 1,044,067 mt in May, but up 12% from a year ago. Mexico was the top destination in May, taking 25% of U.S. exports and was followed by Vietnam and South Korea. In the first six months of 2021, U.S. exports of DDGS are up 10% 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|
|Bartlett and Company, Kansas City, MO (816 714 3413)|
|Show Me Ethanol LLC, Carrollton, MO (660-542-6493)|
|CHS, Minneapolis, MN (800-769-1066)|
|POET Nutrition, Sioux Falls, SD (888-327-8799)|
|United BioEnergy, Wichita, KS (316-616-3521)|
|U.S. Commodities, Minneapolis, MN (888-293-1640)|
|Valero Energy Corp, San Antonio, Texas|
|Western Milling, Goshen, California (559-302-1074)|
|*Prices listed per ton.|
|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|
|DDG Weekly Average Spot Price||$186.00|
|DDG Value Relative to:||8/5||7/29|
|Cost Per Unit of Protein:|
|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 firstname.lastname@example.org
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