Market Matters Blog

Weekly DTN Average DDG Price Marches 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 Feb. 10 was up $6 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 Feb. 10 was $234 per ton, up $6 per ton versus one week ago.

DDG prices continue to move higher thanks to strong export demand as well as good domestic demand with the continued rise in soybean meal prices. DDG prices are also strong due to the slowdown in plant production, which in turn has caused tight supplies in some states.

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 above 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.

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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Feb. 10 was 102.09%. The value of DDG relative to soybean meal was 51.54%, and the cost per unit of protein for DDG was $8.67, compared to the cost per unit of protein for soybean meal at $9.56.

In their weekly DDGS update, the U.S. Grains Council said, "U.S. barge freight rates continue to rally and Barge CIF NOLA DDGS are up $6 to $7 metric ton (mt) for March/April/May shipment. FOB NOLA offers are up $15/mt for March and demand is shifting into Q2 positions, sending April offers up $17/mt. Prices for rail delivered DDGS are up $15 to $17/mt this week. The market for containerized DDGS to Southeast Asia is mixed so far this week with exporters citing a wide bid/ask spread. On average, offers are down $4 to $6/mt for March and Q2 positions with the average price for 40-foot containers to Southeast Asia hitting $366/mt this week."

The U.S. Census Bureau said Tuesday that U.S. exports of DDGS totaled 933,882 mt in December, down from 1,019,430 mt in December, but up 8% from a year ago. Mexico was the top destination in December, taking 18% of U.S. exports and was followed by South Korea and Vietnam. In 2021, U.S. exports of DDGS were 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 CURRENT CHANGE
COMPANY STATE 2/10/2022 2/3/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $250 $240 $10
Wet $140 $130 $10
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $250 $245 $5
Wet $135 $135 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $220 $210 $10
Indiana Dry $225 $210 $15
Iowa Dry $225 $215 $10
Michigan Dry $210 $195 $15
Minnesota Dry $230 $210 $20
New York Dry $245 $235 $10
South Dakota Dry $240 $220 $20
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $245 $235 $10
Wet $85 $80 $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $215 $210 $5
Iowa Dry $265 $265 $0
Michigan Dry $220 $215 $5
Minnesota Dry $255 $255 $0
Missouri Dry $265 $265 $0
Ohio Dry $215 $210 $5
South Dakota Dry $275 $275 $0
Nebraska Dry $255 $255 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $240 $225 $15
Wet $95 $85 $10
Illinois Dry $225 $215 $10
Nebraska Dry $240 $225 $15
Wet $95 $85 $10
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $215 $215 $0
Indiana Dry $210 $210 $0
Iowa Dry $225 $225 $0
Michigan Dry $215 $215 $0
Minnesota Dry $225 $225 $0
Nebraska Dry $250 $250 $0
New York Dry $240 $240 $0
North Dakota Dry $250 $250 $0
Ohio Dry $215 $215 $0
South Dakota Dry $235 $235 $0
Wisconsin Dry $210 $210 $0
Western Kansas Dry $285 $275 $10
Wet $105 $100 5
Central Kansas Dry $255 $240 15
Wet $85 $85 0
Western Milling, Goshen, California (559-302-1074)
California Dry $310 $310 $0
**Weekly Average: $234 $228 $6
(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 2/10/2022 $6.4175 $229.20
Soybean Meal 2/10/2022 $454.00
DDG Weekly Average Spot Price $234.00
DDG Value Relative to: 2/10 2/3
Corn 102.09% 103.51%
Soybean Meal 51.54% 52.16%
Cost Per Unit of Protein:
DDG $8.67 $8.44
Soybean Meal $9.56 $9.20
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

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

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