Market Matters Blog

DTN Weekly Average DDG Price Slips 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 Sept. 9 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 Sept. 9 was $197 per ton, down $4 from one week ago. Prices moved lower on average this week due in part to slowing exports out of the Gulf, leaving plants the need to find more homes in the domestic market nearby. Given the past nine weeks prior to last week showing a slowdown in plant production, supplies are not becoming burdensome.

Wednesday's Energy Information Administration report showed domestic inventory of ethanol posting a sixth straight weekly draw, falling to a 12-week low though production posted the first increase in over two months. Data showed overall production moved off a six-month low, up 18,000 barrels per day (bpd) or 2% to 923,000 bpd.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Sep. 9 was 111.21%. The value of DDG relative to soybean meal was 58.58%, and the cost per unit of protein for DDG was $7.30, compared to the cost per unit of protein for soybean meal at $7.08.

In its weekly DDGS export price update, the U.S. Grains Council said: "Exporters and merchandisers report spotty offers and indications for September/October shipment from the U.S. Gulf, with ingredient traders offering the only true interest in assessing logistics or booking product. Roughly speaking, Barge CIF NOLA values are up $6 per metric ton (MT) this week while FOB Gulf offers are up $5/MT for October (based on scant indications) but November and December positions are steady/down $3/MT. Indications for 40-foot containers to Southeast Asia are wide-ranging this week, but the general trend seems to be sideways."

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."

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 9/9/2021 9/2/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $210 $215 -$5
Wet $105 $108 -$3
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $205 $215 -$10
Wet $102 $108 -$6
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $195 $200 -$5
Indiana Dry $190 $195 -$5
Iowa Dry $190 $190 $0
Michigan Dry $190 $195 -$5
Minnesota Dry $190 $190 $0
North Dakota Dry $190 $190 $0
New York Dry $220 $225 -$5
South Dakota Dry $190 $195 -$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $195 $200 -$5
Iowa Dry $205 $215 -$10
Michigan Dry $205 $200 $5
Minnesota Dry $205 $210 -$5
Missouri Dry $215 $215 $0
Ohio Dry $190 $195 -$5
South Dakota Dry $216 $215 $1
Nebraska Dry $205 $215 -$10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $195 $205 -$10
Wet $80 $80 $0
Illinois Dry $195 $200 -$5
Nebraska Dry $195 $205 -$10
Wet $80 $80 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $195 $200 -$5
Indiana Dry $195 $200 -$5
Iowa Dry $192 $195 -$3
Michigan Dry $195 $200 -$5
Minnesota Dry $190 $195 -$5
Nebraska Dry $195 $197 -$2
New York Dry $210 $210 $0
North Dakota Dry $203 $207 -$4
Ohio Dry $190 $195 -$5
South Dakota Dry $200 $200 $0
Wisconsin Dry $175 $190 -$15
Western Milling, Goshen, California (559-302-1074)
California subject Dry $263 $263 $0
*Prices listed per ton. $197 $201 -$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 9/9/2021 $4.9600 $177.14
Soybean Meal 9/9/2021 $336.30
DDG Weekly Average Spot Price $197.00
DDG Value Relative to: 9/9 9/2
Corn 111.21% 109.02%
Soybean Meal 58.58% 59.48%
Cost Per Unit of Protein:
DDG $7.30 $7.44
Soybean Meal $7.08 $7.11
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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