Market Matters Blog

DTN Weekly Average DDG Price Moves Lower

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 Sep. 2 was $4 lower 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 Sep. 2 was $201 per ton, down $4 from one week ago. Prices moved lower on average this week even as production was lower again, slowing DDG output.

Wednesday's Energy Information Administration report showed domestic inventory of ethanol was drawn down for a fifth consecutive week through Aug. 27 as production dropped an eighth straight week, sliding to the lowest level since the end of February. Data show production tumbled 28,000 barrels per day (bpd) or 3% in the week reviewed to 905,000 bpd, sinking 162,000 bpd since the downtrend began in July.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Sep. 2 was 109.02%. The value of DDG relative to soybean meal was 59.44%, and the cost per unit of protein for DDG was $7.44, compared to the cost per unit of protein for soybean meal at $7.11.

In its weekly DDGS export price update, the U.S. Grains Council said: "Exporters report the DDGS market should not be as impacted by Hurricane Ida as the corn, wheat and soybean markets. One source noted DDGS offers are appearing again as "floating rigs are expected to be functional again" in the near future. Barge CIF NOLA prices are $8 to $10 metric ton (mt) lower while FOB Gulf offers are down $5 to $6/mt for October/November/December shipment. U.S. rail rates are lower this week but that could change quickly if commodities formerly destined for export from the Gulf are to be re-routed to the PNW. Offers for 40-foot containers to Southeast Asia are mixed this week but steady overall at $335/mt for Q4 positions."

USGC added, "Please note that FOB Gulf markets will likely be more volatile than normal as the industry works to recover full capacity in New Orleans area export facilities. There are significant questions about elevator capacity and availability and the DDGS market will have to compete with other grains as the U.S. new-crop harvest approaches. Consequently, both flat prices and spreads versus other markets may see greater than normal volatility."

The U.S. Census Bureau on Thursday reported U.S. exports of DDGS totaled 1,064,550 mt in July, up from 939,177 mt in June, but down 1% from a year ago. Mexico was the top destination in May, taking 23% of U.S. exports and was followed by Turkey and Vietnam. In the first seven months of 2021, U.S. exports of DDGS are up 8% 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 9/2/2021 8/26/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $215 $220 -$5
Wet $108 $110 -$2
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $215 $220 -$5
Wet $108 $110 -$2
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $200 $205 -$5
Indiana Dry $195 $200 -$5
Iowa Dry $190 $200 -$10
Michigan Dry $195 $195 $0
Minnesota Dry $190 $195 -$5
North Dakota Dry $190 $195 -$5
New York Dry $225 $230 -$5
South Dakota Dry $195 $195 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $200 $210 -$10
Iowa Dry $215 $220 -$5
Michigan Dry $200 $215 -$15
Minnesota Dry $210 $215 -$5
Missouri Dry $215 $225 -$10
Ohio Dry $195 $205 -$10
South Dakota Dry $215 $220 -$5
Nebraska Dry $215 $220 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $205 $205 $0
Wet $80 $80 $0
Illinois Dry $200 $200 $0
Nebraska Dry $205 $205 $0
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 $197 $205 -$8
New York Dry $210 $210 $0
North Dakota Dry $207 $210 -$3
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 $263 $270 -$7
*Prices listed per ton. $201 $205 -$4
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 9/2/2021 $5.1625 $184.38
Soybean Meal 9/2/2021 $337.90
DDG Weekly Average Spot Price $201.00
DDG Value Relative to: 9/2 8/26
Corn 109.02% 103.84%
Soybean Meal 59.48% 57.50%
Cost Per Unit of Protein:
DDG $7.44 $7.59
Soybean Meal $7.11 $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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