Market Matters Blog

DTN Weekly DDG Price Higher on Average

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 Aug. 5 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 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
COMPANY STATE 8/5/2021 7/29/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $200 $200 $0
Wet $100 $100 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $200 $195 $5
Wet $95 $90 $5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $190 $185 $5
Indiana Dry $170 $170 $0
Iowa Dry $182 $175 $7
Michigan Dry $175 $175 $0
Minnesota Dry $180 $180 $0
North Dakota Dry $200 $200 $0
New York Dry $210 $192 $18
South Dakota Dry $185 $185 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $180 $180 $0
Iowa Dry $195 $185 $10
Michigan Dry $180 $180 $0
Minnesota Dry $195 $185 $10
Missouri Dry $200 $195 $5
Ohio Dry $180 $180 $0
South Dakota Dry $195 $190 $5
Nebraska Dry $205 $195 $10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $175 $175 $0
Wet $65 $65 $0
Illinois Dry $190 $190 $0
Nebraska Dry $170 $170 $0
Wet $65 $65 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $175 $168 $7
Indiana Dry $180 $180 $0
Iowa Dry $175 $165 $10
Michigan Dry $182 $180 $2
Minnesota Dry $175 $165 $10
Nebraska Dry $195 $190 $5
New York Dry $215 $210 $5
North Dakota Dry $200 $200 $0
Ohio Dry $189 $180 $9
South Dakota Dry $190 $193 -$3
Wisconsin Dry $170 $160 $10
Valero Energy Corp, San Antonio, Texas
Indiana
Iowa
Minnesota
Nebraska
Ohio
South Dakota
Western Milling, Goshen, California (559-302-1074)
California Dry $257 $257 $0
*Prices listed per ton.
Weekly Average $186 $182 $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 8/5/2021 $5.5575 $198.48
Soybean Meal 8/5/2021 $356.90
DDG Weekly Average Spot Price $186.00
DDG Value Relative to: 8/5 7/29
Corn 93.71% 91.33%
Soybean Meal 52.11% 51.05%
Cost Per Unit of Protein:
DDG $6.89 $6.74
Soybean Meal $7.51 $7.51
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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