Market Matters Blog

DTN Weekly DDG Price Higher Again 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. 26 was $3 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. 26 was $205 per ton, up $3 from one week ago. Prices were steady to higher as supplies are getting tight given the lower production the past seven weeks.

Cheaper cash corn prices are a welcome sight to many plants. The DTN National Corn Index was down 21 cents versus one week ago and the DTN national average corn basis has dropped 13 cents.

Wednesday's Energy Information Administration report showed domestic inventory of ethanol moved lower for a fourth week through Aug. 20 as production of the fuel slid 4.1% to the lowest level since March. Data also show plant production dropped a seventh straight week, sliding 40,000 barrels per day (bpd) last week to 933,000 bpd, a five-month low. Current ethanol production is pretty close to what we saw during the demand destruction months in 2020 due to COVID-19 according to analysts.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Aug. 26 was 103.84%. The value of DDG relative to soybean meal was 57.50%, and the cost per unit of protein for DDG was $7.59, compared to the cost per unit of protein for soybean meal at $7.51.

In its weekly DDGS export price update, the U.S. Grains Council said: "Barge CIF NOLA values are down $1 to $3 metric ton (mt) this week while FOB Gulf prices are down $6/mt for spot positions and down $10 to $12 for fall/winter shipment. Containerized DDGS prices are also lower this week with Southeast Asian buyers remaining quiet. Prices for containerized DDGS are down $3 for spot positions and steady for October forward. The average price for 40-foot containers to Southeast Asia reached $334/mt as of Thursday's trade."

In reference to USGC price comments, the lower CIF NOLA and FOB Gulf prices this past week may also have been under pressure from delays and/or stoppages in the Lower Mississippi River for over a week, as barge groundings and subsequent ongoing dredging near and at Victoria Bend either slowed or stopped barge traffic heading to the Gulf since late last week into 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 8/26/2021 8/19/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $220 $218 $2
Wet $110 $109 $1
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $220 $215 $5
Wet $110 $108 $2
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $205 $205 $0
Indiana Dry $200 $190 $10
Iowa Dry $200 $195 $5
Michigan Dry $195 $190 $5
Minnesota Dry $195 $195 $0
North Dakota Dry $195 $200 -$5
New York Dry $230 $220 $10
South Dakota Dry $195 $195 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $210 $200 $10
Iowa Dry $220 $215 $5
Michigan Dry $215 $205 $10
Minnesota Dry $215 $210 $5
Missouri Dry $225 $215 $10
Ohio Dry $205 $200 $5
South Dakota Dry $220 $215 $5
Nebraska Dry $220 $219 $1
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $205 $200 $5
Wet $80 $80 $0
Illinois Dry $200 $197 $3
Nebraska Dry $205 $200 $5
Wet $80 $80 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $200 $200 $0
Indiana Dry $200 $200 $0
Iowa Dry $195 $195 $0
Michigan Dry $200 $200 $0
Minnesota Dry $195 $195 $0
Nebraska Dry $205 $205 $0
New York Dry $210 $210 $0
North Dakota Dry $210 $210 $0
Ohio Dry $195 $195 $0
South Dakota Dry $200 $200 $0
Wisconsin Dry $190 $190 $0
Western Milling, Goshen, California (559-302-1074)
California subject Dry $270 $265 $5
*Prices listed per ton. $205 $202 $3
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 8/26/2021 $5.5275 $197.41
Soybean Meal 8/26/2021 $356.50
DDG Weekly Average Spot Price $205.00
DDG Value Relative to: 8/26 8/19
Corn 103.84% 102.84%
Soybean Meal 57.50% 57.47%
Cost Per Unit of Protein:
DDG $7.59 $7.48
Soybean Meal $7.51 $7.40
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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