Market Matters Blog

DTN Weekly Average DDG Price Continues to Climb

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. 20 was up $2 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. 27 was $215 per ton, up $3 per ton versus one week ago. DDG prices have been moving higher during the month of January, fueled by strong soybean meal prices and strong demand from feeders.

Wednesday's Energy Information Administration (EIA) report showed U.S. ethanol production fell 18,000 barrels per day (bpd) as of Jan. 21 to 1.035 million bpd, but remained above 1 million bpd for a 16th consecutive week. Output in the week profiled was 11% more than the same time in 2021.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 27 was 96.28%. The value of DDG relative to soybean meal was 53.13%, and the cost per unit of protein for DDG was $7.96, compared to the cost per unit of protein for soybean meal at $8.52.

In their weekly DDGS update, the U.S. Grains Council said, "Persistent cold weather and logistical difficulties continue to support rail and barge markets. U.S. rail rates are up $4 to $5 metric ton (mt) this week with rates to Laredo, Texas, seeing the largest increase ($7/mt) for spot positions. The Barge CIF NOLA market is similarly higher, up $6/mt for spot and up $7/mt for March positions, while FOB Gulf offers are up $4 to $5/mt. Prices for DDGS containers to Southeast Asia continue to grind higher, rising $3 to $5/mt for February through April positions. International buyers continue to show steady interest in U.S. product with recent declines in freight values helping bolster inquiries and purchases. Prices for 40-foot containers into Southeast Asia are averaging $368/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 1/21/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $240 $240 $0
Wet $125 $125 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $245 $235 $10
Wet $130 $130 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $205 $205 $0
Indiana Dry $200 $200 $0
Iowa Dry $205 $205 $0
Michigan Dry $190 $185 $5
Minnesota Dry $200 $195 $5
New York Dry $220 $210 $10
South Dakota Dry $220 $208 $12
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $220 $220 $0
Wet $75 $75 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $205 $205 $0
Iowa Dry $235 $230 $5
Michigan Dry $210 $205 $5
Minnesota Dry $230 $230 $0
Missouri Dry $245 $235 $10
Ohio Dry $205 $205 $0
South Dakota Dry $245 $235 $10
Nebraska Dry $240 $240 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $225 $225 $0
Wet $85 $85 $0
Illinois Dry $215 $200 $15
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 $200 $0
Michigan Dry $195 $195 $0
Minnesota Dry $185 $185 $0
Nebraska Dry $230 $225 $5
New York Dry $210 $210 $0
North Dakota Dry $230 $225 $5
Ohio Dry $195 $195 $0
South Dakota Dry $205 $205 $0
Wisconsin Dry $195 $195 $0
Western Kansas Dry $275 $270 $5
Wet $100 $100 0
Central Kansas Dry $240 $240 0
Wet $85 $85 0
Western Milling, Goshen, California (559-302-1074)
California Dry $298 $293 $5
**Weekly Average: $215 $212 $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 1/27/2022 $6.2525 $223.30
Soybean Meal 1/27/2022 $404.70
DDG Weekly Average Spot Price $215.00
DDG Value Relative to: 1/28 1/13
Corn 96.28% 100.01%
Soybean Meal 53.13% 49.56%
Cost Per Unit of Protein:
DDG $7.96 $7.78
Soybean Meal $8.52 $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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