Market Matters Blog
Weekly DTN Average DDG Price Surges Versus Two Weeks Ago
OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended March 10 was $282 per ton, up $34 per ton versus the Feb. 24 price update.
DDG prices continue their rise in 2022 as cash corn prices have surged due to the ongoing war in Ukraine. Soybean meal prices have also climbed, giving support to the DDG prices as feeders scramble to buy feed, as some states reported tight supplies. While availability of trucks has been tight for some time, the higher diesel prices on top of that have added to the DDG price strength.
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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Thursday, March 10, was 104.20%. The value of DDG relative to soybean meal was 55.64%, and the cost per unit of protein for DDG was $10.44, compared to the cost per unit of protein for soybean meal at $10.67.
The Energy Information Administration reported midmorning Thursday that domestic ethanol production rebounded in the first week of March, moving back above the 1 million-barrel-per-day (bpd) level with stocks also recouping a good portion of the week prior's drop with a build of more than 325,000 barrels (bbl) through March 4. EIA data showed overall ethanol production rose 31,000 bpd to a five-week high 1.028 million bpd, about 10% more than the comparable week of March 2021. Four-week average output totaled 1.015 million bpd compared with 839,000 bpd reported in the same four-week period of 2021.
In its weekly DDGS update, the U.S. Grains Council said, "Energy costs are supporting interior truck values and railroad fuel surcharges and rail-delivered DDGS are up $20-$34 per metric ton (mt) from last week. Barge CIF NOLA DDGS prices are up $60-$65/mt this week and FOB Gulf offers are equally higher, averaging $411/mt for April. As was the case last week, there are a wide range of indications in the market and Thursday's indications hold a premium to early week offers. Containerized DDGS to Southeast Asia are still trading slowly amid large increases in DDGS prices and ocean freight values. Offers up $3/$4mt this week, with the average Q2 price for 40-foot containers to Southeast Asia reaching $451/mt."
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 | 3/10/2022 | 2/24/2022 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $300 | $265 | $35 | |
| Wet | $160 | $145 | $15 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Dry | $300 | $280 | $20 | ||
| Wet | $170 | $160 | $10 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $290 | $240 | $50 | |
| Indiana | Dry | $280 | $240 | $40 | |
| Iowa | Dry | $270 | $245 | $25 | |
| Michigan | Dry | $260 | $235 | $25 | |
| Minnesota | Dry | $275 | $250 | $25 | |
| New York | Dry | $305 | $270 | $35 | |
| South Dakota | Dry | $290 | $260 | $30 | |
| MGP Ingredients, Atchison, KS (800-255-0302) | |||||
| Dry | $290 | $255 | $35 | ||
| Wet | $95 | $86 | $9 | ||
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $285 | $240 | $45 | |
| Iowa | Dry | $290 | $280 | $10 | |
| Michigan | Dry | $270 | $245 | $25 | |
| Minnesota | Dry | $285 | $270 | $15 | |
| Missouri | Dry | $300 | $285 | $15 | |
| Ohio | Dry | $285 | $240 | $45 | |
| South Dakota | Dry | $300 | $290 | $10 | |
| Nebraska | Dry | $310 | $260 | $50 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $285 | $260 | $25 | |
| Wet | $105 | $95 | $10 | ||
| Illinois | Dry | $280 | $235 | $45 | |
| Nebraska | Dry | $285 | $260 | $25 | |
| Wet | $105 | $95 | $10 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $275 | $220 | $55 | |
| Indiana | Dry | $265 | $215 | $50 | |
| Iowa | Dry | $265 | $230 | $35 | |
| Michigan | Dry | $260 | $220 | $40 | |
| Minnesota | Dry | $270 | $235 | $35 | |
| Nebraska | Dry | $305 | $250 | $55 | |
| New York | Dry | $305 | $240 | $65 | |
| North Dakota | Dry | $285 | $250 | $35 | |
| Ohio | Dry | $275 | $220 | $55 | |
| South Dakota | Dry | $280 | $245 | $35 | |
| Wisconsin | Dry | $260 | $215 | $45 | |
| Western Kansas | Dry | $310 | $290 | $20 | |
| Wet | $118 | $112 | $6 | ||
| Central Kansas | Dry | $0 | |||
| Wet | $0 | ||||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $358 | $325 | $33 | |
| **Weekly Average: | $282 | $248 | $34 | ||
| (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 | 3/10/2022 | $7.5775 | $270.63 |
| Soybean Meal | 3/10/2022 | $506.80 | |
| DDG Weekly Average Spot Price | $282.00 | ||
| DDG Value Relative to: | 3/10 | 2/24 | |
| Corn | 104.20% | 99.91% | |
| Soybean Meal | 55.64% | 53.34% | |
| Cost Per Unit of Protein: | |||
| DDG | $10.44 | $9.19 | |
| Soybean Meal | $10.67 | $9.79 | |
| 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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