Market Matters Blog
Continued Demand Keeps DTN Average DDG Price Higher
OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended Jan. 20 was $212 per ton, up $2 per ton versus one week ago.
There is still good demand from livestock feeders and while soybean meal futures have been fluctuating, cash soybean meal prices are still up about $25 per ton since the beginning of January.
Wednesday's Energy Information Administration (EIA) report showed that, while holding above the 1 million barrels per day (bpd) level for a 15th straight week, the second week of January marked the first uptick in overall ethanol output in three weeks, noted DTN Refined Fuels. U.S. plant production of ethanol rose 47,000 bpd to 1.053 million bpd last week, 11.4% more than the same week in 2021. Ethanol plant production in PADD 2 also rose 47,000 bpd through Jan. 14 to 994,000 bpd.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 20 was 97.15%. The value of DDG relative to soybean meal was 52.89%, and the cost per unit of protein for DDG was $7.85, compared to the cost per unit of protein for soybean meal at $8.44.
In their weekly DDGS update, the U.S. Grains Council said, "Cold weather and the associated logistical difficulties are impacting barge markets and pushing freight rates higher, which, in turn, is supporting export destined DDGS prices. Gains in barge freight rates have pushed offers for DDGS. Barge CIF NOLA up $7 metric ton (mt) for February while March and April offers are up $5 mt. Similarly, FOB NOLA offers are up $11 mt to $298 mt for February, while March positions are up $8 mt at $287. Prices for DDGS containers to Southeast Asia are mostly higher this week, rising $3 to $8 mt for February through April positions. Like last week, brokers report steady increases in export interest but that both buyers and sellers remain patient. Prices for 40-foot containers into Southeast Asia are averaging $365 mt so far 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 | PREVIOUS | CHANGE | ||
| COMPANY | STATE | 1/21/2022 | 1/13/2022 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $240 | $225 | $15 | |
| Wet | $125 | $120 | $5 | ||
| 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 | $205 | $200 | $5 | |
| Indiana | Dry | $200 | $200 | $0 | |
| Iowa | Dry | $205 | $200 | $5 | |
| Michigan | Dry | $185 | $185 | $0 | |
| Minnesota | Dry | $195 | $190 | $5 | |
| New York | Dry | $210 | $210 | $0 | |
| South Dakota | Dry | $208 | $205 | $3 | |
| MGP Ingredients, Atchison, KS (800-255-0302) | |||||
| Dry | $220 | $220 | $0 | ||
| Wet | $75 | $73 | $2 | ||
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $205 | $205 | $0 | |
| Iowa | Dry | $230 | $230 | $0 | |
| Michigan | Dry | $205 | $205 | $0 | |
| Minnesota | Dry | $230 | $230 | $0 | |
| Missouri | Dry | $235 | $235 | $0 | |
| Ohio | Dry | $205 | $205 | $0 | |
| South Dakota | Dry | $235 | $235 | $0 | |
| Nebraska | Dry | $240 | $240 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $225 | $225 | $0 | |
| Wet | $85 | $85 | $0 | ||
| Illinois | Dry | $200 | $205 | -$5 | |
| 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 | $200 | $195 | $5 | |
| Michigan | Dry | $195 | $190 | $5 | |
| Minnesota | Dry | $185 | $185 | $0 | |
| Nebraska | Dry | $225 | $225 | $0 | |
| New York | Dry | $210 | $210 | $0 | |
| North Dakota | Dry | $225 | $225 | $0 | |
| Ohio | Dry | $195 | $190 | $5 | |
| South Dakota | Dry | $205 | $205 | $0 | |
| Wisconsin | Dry | $195 | $187 | $8 | |
| Western Kansas | Dry | $270 | $265 | $5 | |
| Wet | $100 | $100 | 0 | ||
| Central Kansas | Dry | $240 | $240 | 0 | |
| Wet | $85 | $85 | 0 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $293 | $297 | -$4 | |
| **Weekly Average: | $212 | $210 | $2 | ||
| (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 | 1/20/2022 | $6.1100 | $218.21 |
| Soybean Meal | 1/20/2022 | $400.80 | |
| DDG Weekly Average Spot Price | $212.00 | ||
| DDG Value Relative to: | 1/20 | 1/13 | |
| Corn | 97.15% | 100.01% | |
| Soybean Meal | 52.89% | 49.56% | |
| Cost Per Unit of Protein: | |||
| DDG | $7.85 | $7.78 | |
| Soybean Meal | $8.44 | $8.92 | |
| 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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