Market Matters Blog
DTN Weekly Average DDG Price Higher on Strong Demand
OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended Jan. 13 was $210 per ton, up $3 per ton on average versus one week ago.
The lower corn board has not really affected DDG prices, as higher soymeal prices continue to support the market. With demand from feeders still strong and less supply due to slower runtimes, DDG prices remain firm.
Wednesday's Energy Information Administration (EIA) report showed overall U.S. ethanol plant production dropped 42,000 barrels per day (bpd) to 1.006 million bpd in the week reviewed and averaged 1.041 million bpd over the most recent four weeks.
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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 13 was 1.0085%. The value of DDG relative to soybean meal was 49.56%, and the cost per unit of protein for DDG was $7.78, compared to the cost per unit of protein for soybean meal at $8.92.
In their weekly DDGS update, the U.S. Grains Council said, "On the export market, DDGS values are holding steady with two weeks of slower ethanol run rates and DDGS production helping tighten supplies. Barge CIF NOLA and FOB NOLA prices are each down $1-$2 per metric ton (mt) for Q1 shipment, while April barges are up $5/mt. U.S. rail rates are steady/up $1, on average, but offers for product delivered to KC rail yards are up $5-6/mt. Prices for DDGS containers to Southeast Asia are up modestly this week, rising $2/mt for February positions and up $1/mt for March and April. Brokers report a gradual increase in buying interest, but that markets remain quiet overall. Prices for 40-foot containers into Southeast Asia averaged $362/mt so far this week."
The Chinese Ministry of Commerce (MOFCOM) recently said it will maintain anti-dumping and anti-subsidy tariffs on imports of DDGS from the U.S., originally imposed in 2016, during a review of the current tariffs. Reuters noted that according to MOFCOM, the review should be finalized before Jan. 12, 2023. U.S. DDGS currently exported to China have been going to duty-free zones, according to USGC.
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 | 1/13/2022 | 1/6/2022 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $225 | $225 | $0 | |
| Wet | $120 | $120 | $0 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Dry | $235 | $235 | $0 | ||
| Wet | $130 | $130 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $200 | $200 | $0 | |
| Indiana | Dry | $200 | $195 | $5 | |
| Iowa | Dry | $200 | $192 | $8 | |
| Michigan | Dry | $185 | $185 | $0 | |
| Minnesota | Dry | $190 | $183 | $7 | |
| New York | Dry | $210 | $195 | $15 | |
| South Dakota | Dry | $205 | $205 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302) | |||||
| Dry | $220 | $220 | $0 | ||
| Wet | $73 | $73 | $0 | ||
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $205 | $195 | $10 | |
| Iowa | Dry | $230 | $230 | $0 | |
| Michigan | Dry | $205 | $195 | $10 | |
| Minnesota | Dry | $230 | $230 | $0 | |
| Missouri | Dry | $235 | $230 | $5 | |
| Ohio | Dry | $205 | $195 | $10 | |
| South Dakota | Dry | $235 | $230 | $5 | |
| Nebraska | Dry | $240 | $230 | $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 | $200 | $0 | |
| Indiana | Dry | $195 | $195 | $0 | |
| Iowa | Dry | $195 | $190 | $5 | |
| Michigan | Dry | $190 | $190 | $0 | |
| Minnesota | Dry | $185 | $185 | $0 | |
| Nebraska | Dry | $225 | $220 | $5 | |
| New York | Dry | $210 | $210 | $0 | |
| North Dakota | Dry | $225 | $225 | $0 | |
| Ohio | Dry | $190 | $190 | $0 | |
| South Dakota | Dry | $205 | $200 | $5 | |
| Wisconsin | Dry | $187 | $187 | $0 | |
| Western Kansas | Dry | $265 | $255 | $10 | |
| Wet | $100 | $100 | 0 | ||
| Central Kansas | Dry | $240 | $255 | -15 | |
| Wet | $85 | $90 | -5 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $297 | $300 | -$3 | |
| **Weekly Average: | $210 | $207 | $3 | ||
| (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 | 1/13/2022 | $5.8750 | $209.82 |
| Soybean Meal | 1/13/2022 | $423.70 | |
| DDG Weekly Average Spot Price | $210.00 | ||
| DDG Value Relative to: | 1/13 | 1/6 | |
| Corn | 1.01% | 96.00% | |
| Soybean Meal | 49.56% | 49.24% | |
| Cost Per Unit of Protein: | |||
| DDG | $7.78 | $7.67 | |
| Soybean Meal | $8.92 | $8.85 | |
| 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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