Market Matters Blog

Weekly DTN Average DDG Price Higher for Tenth Week in a Row

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's weekly spot price for domestic distillers dried grains for the week ended Feb. 24 was up $10 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. 24 was $248 per ton, up $10 per ton versus one week ago.

DDG prices are on a ten-week winning streak as demand from feeders continues. Also still adding to the strength is higher soybean meal prices. One merchandiser noted some plants are preparing for maintenance, which will keep DDG supplies tight in some areas.

Current DDG prices listed below may react to the extreme volatility in corn, soybean meal and all the grain markets seen on Feb. 24 and Feb. 25, so please treat all the prices quoted this week as subject to change.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Thursday, Feb. 24 was 99.91%. The value of DDG relative to soybean meal was 53.34%, and the cost per unit of protein for DDG was $9.19, compared to the cost per unit of protein for soybean meal at $9.79.

The Energy Information Administration (EIA) report this week showed U.S. ethanol production remains strong, while demand moved to an eight-week high through Feb. 18. EIA reported domestic ethanol production rose 15,000 barrels per day (bpd) or 1.5% last week to 1.009 million bpd, above 1 million bpd for 19 of the last 20 weeks. Four-week average output totaled 1.017 million bpd, up from 1.02 million bpd four weeks earlier and above the 860,000 bpd level reported in the same four-week period of 2021.

In their weekly DDGS update, the U.S. Grains Council said, "Barge freight rate is rising again due to cold temperatures and logistics challenges in the Midwest. Barge CIF NOLA DDGS prices are up $5 to $7 metric ton (mt) for spot positions while FOB Gulf offers are steady/$2 higher for March -- May shipment. U.S. rail rates are roughly $20/mt higher this week with offers for product delivered into the PNW up $18/mt for March shipment. Exporters and brokers report the market for containerized DDGS to Southeast Asia remains quiet again this week with spotty bids/offers. Offers average $360/mt this week, down from the prior 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 2/24/2022 2/17/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $265 $250 $15
Wet $145 $140 $5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $280 $255 $25
Wet $160 $135 $25
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $240 $225 $15
Indiana Dry $240 $225 $15
Iowa Dry $245 $230 $15
Michigan Dry $235 $220 $15
Minnesota Dry $250 $235 $15
New York Dry $270 $255 $15
South Dakota Dry $260 $245 $15
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $255 $245 $10
Wet $86 $85 $1
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $240 $220 $20
Iowa Dry $280 $255 $25
Michigan Dry $245 $225 $20
Minnesota Dry $270 $255 $15
Missouri Dry $285 $265 $20
Ohio Dry $240 $220 $20
South Dakota Dry $290 $275 $15
Nebraska Dry $260 $255 $5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $260 $250 $10
Wet $95 $95 $0
Illinois Dry $235 $225 $10
Nebraska Dry $260 $250 $10
Wet $95 $95 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $220 $220 $0
Indiana Dry $215 $215 $0
Iowa Dry $230 $230 $0
Michigan Dry $220 $220 $0
Minnesota Dry $235 $235 $0
Nebraska Dry $250 $250 $0
New York Dry $240 $240 $0
North Dakota Dry $250 $250 $0
Ohio Dry $220 $220 $0
South Dakota Dry $245 $245 $0
Wisconsin Dry $215 $215 $0
Western Kansas Dry $290 $285 $5
Wet $112 $105 $7
Central Kansas Dry $275 $255 $20
Wet $95 $85 $10
Western Milling, Goshen, California (559-302-1074)
California Dry $325 $315 $10
**Weekly Average: $248 $238 $10
(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 2/24/2022 $6.9500 $248.21
Soybean Meal 2/24/2022 $464.90
DDG Weekly Average Spot Price $248.00
DDG Value Relative to: 2/24 2/17
Corn 99.91% 102.52%
Soybean Meal 53.34% 52.98%
Cost Per Unit of Protein:
DDG $9.19 $8.81
Soybean Meal $9.79 $9.46
Notes:
Corn and soybean prices take from DTN Market Quotes. DDG price

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

Follow her on Twitter @MaryCKenn

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