Market Matters Blog

DTN Weekly Average DDG Price Pushes 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 Jan. 6 was up $8 on average versus one week ago. (DTN file photo)

OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended Jan. 6 was $207 per ton, up $8 per ton on average versus one week ago. DDG prices continue to push higher as soybean meal remains expensive, sending feeders to the DDG market.

Wednesday's Energy Information Administration (EIA) report showed overall U.S. ethanol plant production fell 11,000 barrels per day (bpd) to 1.048 million bpd during the week ended Dec. 31 and averaged 1.061 million bpd over the most recent four weeks.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 6 was 96.00%. The value of DDG relative to soybean meal was 49.24% and the cost per unit of protein for DDG was $7.67, compared to the cost per unit of protein for soybean meal at $8.85.

In their weekly DDGS update, the U.S. Grains Council said, "DDGS markets are returning from the holidays with mixed pricing directions. Barge CIF NOLA and FOB U.S. Gulf offers are down $1 to $2 metric ton (mt) for January/early February shipment but are higher for deferred positions. Barge rates for late February and March are up $6 and $4/mt, respectively, while FOB Gulf offers are essentially steady for those positions. Offers for 40-foot containers to Southeast Asia are generally $3 lower, though values to Indonesia are up $8 to $9, product into Myanmar is up $3 to $4, while containers to Thailand are down $15 to $20/mt. The average price for containerized DDGS to Southeast Asia reached $360/mt this week."

U.S. Census Bureau reported Thursday that U.S. exports of DDGS totaled 1,019,430 mt in November, up from 1,058,697 mt in October and up 11% from a year ago. Mexico was the top destination in November, taking 30% of U.S. exports and was followed by Vietnam and South Korea. With one month remaining in 2021, U.S. exports of DDGS are up 6% 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 1/6/2022 12/29/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $225 $220 $5
Wet $120 $115 $5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $235 $225 $10
Wet $130 $125 $5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $200 $200 $0
Indiana Dry $195 $190 $5
Iowa Dry $192 $185 $7
Michigan Dry $185 $180 $5
Minnesota Dry $183 $180 $3
New York Dry $195 $195 $0
South Dakota Dry $205 $195 $10
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $220 $218 $2
Wet $73 $73 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $195 $190 $5
Iowa Dry $230 $195 $35
Michigan Dry $195 $195 $0
Minnesota Dry $230 $195 $35
Missouri Dry $230 $215 $15
Ohio Dry $195 $190 $5
South Dakota Dry $230 $205 $25
Nebraska Dry $230 $220 $10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $225 $225 $0
Wet $85 $85 $0
Illinois Dry $205 $205 $0
Nebraska Dry $225 $225 $0
Wet $85 $85 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $200 $195 $5
Indiana Dry $195 $190 $5
Iowa Dry $190 $180 $10
Michigan Dry $190 $180 $10
Minnesota Dry $185 $175 $10
Nebraska Dry $220 $220 $0
New York Dry $210 $210 $0
North Dakota Dry $225 $222 $3
Ohio Dry $190 $185 $5
South Dakota Dry $200 $195 $5
Wisconsin Dry $187 $187 $0
Western Kansas Dry $255 $255 $0
Wet $100 $100 0
Central Kansas Dry $255 $255 0
Wet $90 $90 0
Western Milling, Goshen, California (559-302-1074)
California Dry $300 $305 -$5
**Weekly Average: $207 $199 $8
(Prices listed per ton)
**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 1/6/2022 $6.0375 $215.63
Soybean Meal 1/6/2022 $420.40
DDG Weekly Average Spot Price $207.00
DDG Value Relative to: 1/6 12/29
Corn 96.00% 92.02%
Soybean Meal 49.24% 47.91%
Cost Per Unit of Protein:
DDG $7.67 $7.37
Soybean Meal $8.85 $8.75
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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