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 Dec. 2 was up $1 on average versus two weeks ago. (DTN file photo)

OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Dec. 2 was $185 per ton, up $1 per ton on average from two weeks ago. DDG prices were mixed but firm even as soybean meal prices have been volatile the past week. Also supportive to DDG has been good demand in the domestic market.

Wednesday's Energy Information Administration (EIA) report showed overall ethanol production fell 44,000 barrels per day (bpd) to a seven-week low 1.035 million bpd as of Nov. 26, 6.3% above the same week in 2020. Midwest PADD 2 plant production dropped 46,000 bpd last week to 978,000 bpd, 5.6% higher than output during the corresponding week last year.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Dec. 2 was 89.77%. The value of DDG relative to soybean meal was 51.67% and the cost per unit of protein for DDG was $6.85, compared to the cost per unit of protein for soybean meal at $7.54.

In its weekly DDGS export price update, the U.S. Grains Council said: "Brokers and exporters report that DDGS demand is quiet on the export market following the U.S. Thanksgiving holiday. Barge CIF NOLA prices are down $10 metric ton (mt) since the last Market Perspectives report while FOB NOLA offers are down $3 to $4/mt for Q1 2022 positions. U.S. rail rates are similarly down $3 to $5/mt from two weeks ago while offers for 40-foot containers to Southeast Asia are steady/$3 lower at $354/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 CURRENT CHANGE
COMPANY STATE 12/2/2021 11/18/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $208 $208 $0
Wet $104 $104 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $210 $205 $5
Wet $110 $105 $5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $195 $195 $0
Indiana Dry $160 $155 $5
Iowa Dry $170 $170 $0
Michigan Dry $150 $150 $0
Minnesota Dry $170 $175 -$5
North Dakota Dry $180 $180 $0
New York Dry $180 $185 -$5
South Dakota Dry $180 $180 $0
MGP Ingredients, Atchison, KS (800-255-0302)
Dry
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $185 $185 $0
Iowa Dry $175 $175 $0
Michigan Dry $185 $185 $0
Minnesota Dry $180 $180 $0
Missouri Dry $205 $205 $0
Ohio Dry $185 $185 $0
South Dakota Dry $186 $186 $0
Nebraska Dry $190 $190 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $220 $220 $0
Wet $80 $80 $0
Illinois Dry $205 $205 $0
Nebraska Dry $220 $220 $0
Wet $80 $80 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $175 $175 $0
Indiana Dry $170 $170 $0
Iowa Dry $170 $170 $0
Michigan Dry $170 $180 -$10
Minnesota Dry $165 $165 $0
Nebraska Dry $195 $190 $5
New York Dry $200 $200 $0
North Dakota Dry $220 $198 $22
Ohio Dry $165 $165 $0
South Dakota Dry $190 $185 $5
Wisconsin Dry $170 $170 $0
Western Kansas Dry $255 $267 -$12
Wet $95 $100 -5
Central Kansas Dry $245 $240 5
Wet $87 $85 2
Western Milling, Goshen, California (559-302-1074)
California Dry $293 $292 $1
*Prices listed per ton. $185 $184 $1
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 12/2/2021 $5.7700 $206.07
Soybean Meal 12/2/2021 $358.00
DDG Weekly Average Spot Price $185.00
DDG Value Relative to: 12/2 11/18
Corn 89.77% 89.91%
Soybean Meal 51.67% 49.68%
Cost Per Unit of Protein:
DDG $6.85 $6.81
Soybean Meal $7.54 $7.80
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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