Market Matters Blog
Demand, High Soymeal Prices Push 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 Feb. 3 was $228 per ton, up $13 per ton versus one week ago.
Higher DDG prices in January have continued into February as strong export and domestic demand push prices higher. In addition, the surge in soymeal prices continues, adding to the strength in the DDG market. Since the start of 2022, cash soybean meal in parts of the Midwest has gone up at least $25 or more per ton. Another factor is severe winter weather messing up logistics on the Illinois and Ohio Rivers as well as the Mississippi River in St. Louis, along with rail cars running behind and a slowdown in available trucks.
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Wednesday's Energy Information Administration (EIA) report showed U.S. ethanol production up 6,000 barrels per day (bpd) in the week ended Jan. 28 to 1.041 million bpd, holding over 1 million bpd for a 17th straight week. Output for the week profiled was 11.2% more than the same time in 2021. PADD 2 output added 2,000 bpd last week to 918,000 bpd while 9.7% above the corresponding week a year ago.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Feb. 3 was 103.51%. The value of DDG relative to soybean meal was 52.16%, and the cost per unit of protein for DDG was $8.44, compared to the cost per unit of protein for soybean meal at $9.20.
In their weekly DDGS update, the U.S. Grains Council said, "U.S. barge freight rates continue to rally amid growing export demand and the logistical difficulties presented by recent Midwest cold weather. Barge CIF NOLA DDGS are up $8 metric ton (mt) for spot/March positions this week while April and May shipments are up $4-6/mt. FOB NOLA offers continue to rise as well, with March loadings up $10/mt this week at $303 and April/May up $6/mt. Prices for DDGS delivered via rail are mostly steady this week with Q2 offers down $1/mt. The market for containerized DDGS to Southeast Asia is quiet this week amid the Lunar New Year holiday. Offers are steady for spot positions and up $1-2/mt for April and May shipment."
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 | 2/3/2022 | 1/27/2022 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $240 | $240 | $0 | |
| Wet | $130 | $125 | $5 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Dry | $245 | $245 | $0 | ||
| Wet | $135 | $130 | $5 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $210 | $205 | $5 | |
| Indiana | Dry | $210 | $200 | $10 | |
| Iowa | Dry | $215 | $205 | $10 | |
| Michigan | Dry | $195 | $190 | $5 | |
| Minnesota | Dry | $210 | $200 | $10 | |
| New York | Dry | $235 | $220 | $15 | |
| South Dakota | Dry | $220 | $220 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302) | |||||
| Dry | $235 | $220 | $15 | ||
| Wet | $80 | $75 | $5 | ||
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $210 | $205 | $5 | |
| Iowa | Dry | $265 | $235 | $30 | |
| Michigan | Dry | $215 | $210 | $5 | |
| Minnesota | Dry | $255 | $230 | $25 | |
| Missouri | Dry | $265 | $245 | $20 | |
| Ohio | Dry | $210 | $205 | $5 | |
| South Dakota | Dry | $275 | $245 | $30 | |
| Nebraska | Dry | $255 | $240 | $15 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $225 | $225 | $0 | |
| Wet | $85 | $85 | $0 | ||
| Illinois | Dry | $215 | $215 | $0 | |
| Nebraska | Dry | $225 | $225 | $0 | |
| Wet | $85 | $85 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $215 | $200 | $15 | |
| Indiana | Dry | $210 | $195 | $15 | |
| Iowa | Dry | $225 | $200 | $25 | |
| Michigan | Dry | $215 | $195 | $20 | |
| Minnesota | Dry | $225 | $185 | $40 | |
| Nebraska | Dry | $250 | $230 | $20 | |
| New York | Dry | $240 | $210 | $30 | |
| North Dakota | Dry | $250 | $230 | $20 | |
| Ohio | Dry | $215 | $195 | $20 | |
| South Dakota | Dry | $235 | $205 | $30 | |
| Wisconsin | Dry | $210 | $195 | $15 | |
| Western Kansas | Dry | $275 | $275 | $0 | |
| Wet | $100 | $100 | 0 | ||
| Central Kansas | Dry | $240 | $240 | 0 | |
| Wet | $85 | $85 | 0 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $310 | $298 | $12 | |
| **Weekly Average: | $228 | $215 | $13 | ||
| (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 | 2/3/2022 | $6.1675 | $220.27 |
| Soybean Meal | 2/3/2022 | $437.10 | |
| DDG Weekly Average Spot Price | $228.00 | ||
| DDG Value Relative to: | 2/3 | 1/28 | |
| Corn | 103.51% | 96.28% | |
| Soybean Meal | 52.16% | 53.13% | |
| Cost Per Unit of Protein: | |||
| DDG | $8.44 | $7.96 | |
| Soybean Meal | $9.20 | $8.52 | |
| 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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