Market Matters Blog

DTN Weekly DDG Average Price 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 Aug. 19 was $5 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. 19 was $202 per ton, up $5 from one week ago. Prices were steady to higher as demand picked up and supplies are getting tight given the lower production the past six weeks.

Wednesday's Energy Information Administration report showed domestic inventory of ethanol was drawn down 700,000 barrels (bbl) or 3.1% to 21.6 million bbl during the week ended Aug. 13, coinciding with a 13,000 barrels per day (bpd) or 1.3% decline in output at U.S. ethanol plants to 973,000 bpd during the week reviewed. Midwest plant production slid 11,000 bpd or 1.2% to 921,000 bpd.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Aug. 5 was 102.84%. The value of DDG relative to soybean meal was 57.47%, and the cost per unit of protein for DDG was $7.48, compared to the cost per unit of protein for soybean meal at $7.40.

In its weekly DDGS export price update, the U.S. Grains Council said: "Increased market activity is supporting DDGS prices on the export market, with Barge CIF NOLA offers up $8 metric ton (mt) for September positions and up $20 for October/November. FOB Gulf offers are $11 to $15 higher this week at $266/mt for spot shipment. U.S. rail rates are following the trend, rising $16-18 this week, while 40-foot containers to Southeast Asia are up $9/mt from last week. The average offer for containerized DDGS to southeast Asia is $337/mt this week."

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 8/19/2021 8/12/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $218 $215 $3
Wet $109 $108 $1
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $215 $215 $0
Wet $108 $108 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $205 $195 $10
Indiana Dry $190 $180 $10
Iowa Dry $195 $190 $5
Michigan Dry $190 $185 $5
Minnesota Dry $195 $190 $5
North Dakota Dry $200 $190 $10
New York Dry $220 $220 $0
South Dakota Dry $195 $195 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $200 $190 $10
Iowa Dry $215 $215 $0
Michigan Dry $205 $190 $15
Minnesota Dry $210 $210 $0
Missouri Dry $215 $215 $0
Ohio Dry $200 $185 $15
South Dakota Dry $215 $215 $0
Nebraska Dry $219 $219 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $200 $200 $0
Wet $80 $80 $0
Illinois Dry $197 $197 $0
Nebraska Dry $200 $200 $0
Wet $80 $80 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $200 $190 $10
Indiana Dry $200 $190 $10
Iowa Dry $195 $185 $10
Michigan Dry $200 $190 $10
Minnesota Dry $195 $185 $10
Nebraska Dry $205 $195 $10
New York Dry $210 $200 $10
North Dakota Dry $210 $210 $0
Ohio Dry $195 $185 $10
South Dakota Dry $200 $197 $3
Wisconsin Dry $190 $180 $10
Western Milling, Goshen, California (559-302-1074)
California subject Dry $265 $265 $0
*Prices listed per ton. $202 $197 $5
Weekly Average
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 8/19/2021 $5.5000 $196.43
Soybean Meal 8/19/2021 $351.50
DDG Weekly Average Spot Price $202.00
DDG Value Relative to: 8/19 8/12
Corn 102.84% 97.28%
Soybean Meal 57.47% 55.43%
Cost Per Unit of Protein:
DDG $7.48 $7.30
Soybean Meal $7.40 $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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