Market Matters Blog

DTN Weekly DDG Price Lower on Average

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 May 27 was $10 lower 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 May 27 was $259 per ton, down $10 on average versus one week ago. Given the uptick in plant production last week and the recent losses in the cash corn market, prices backed off again this week.

The Energy Information Administration report Wednesday showed production at U.S. ethanol plants jumped 33,000 barrels per day (bpd) or 3.3% to 1.024 million bpd through May 20, an eight-week high, and 1.3% above the same week in 2021. Plant output averaged 991,000 bpd during the four weeks ended May 20 -- 3,000 bpd lower than during the comparable four weeks a year ago. Domestic ethanol inventory decreased 79,000 barrels (bbl) last week to 23.712 million bbl, 24.7% higher than the same week in 2021.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended May 27 was 94.80%. The value of DDG relative to soybean meal was 60.49%, and the cost per unit of protein for DDG was $9.59, compared to the cost per unit of protein for soybean meal at $9.01.

In its weekly DDGS export update, the U.S. Grains Council said: "On the export market, brokers and exporters report that Barge CIF NOLA values are down $10 metric ton (mt) for June and down $12/mt for July and August while FOB Gulf offers are down $13/mt. Container offers are down $16-$20/mt this week due to lower internal prices and a modest break in ocean freight rates. The average offer for 40-foot containers to Southeast Asia is $409/mt for June-August 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 5/26/2022 5/19/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $265 $270 -$5
Wet $150 $155 -$5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $250 $260 -$10
Wet $125 $130 -$5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $250 $255 -$5
Indiana Dry $245 $245 $0
Iowa Dry $250 $260 -$10
Michigan Dry $240 $255 -$15
Minnesota Dry $255 $260 -$5
New York Dry $245 $265 -$20
South Dakota Dry $275 $280 -$5
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $245 $250 -$5
Wet $78 $85 -$7
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $260 $270 -$10
Iowa Dry $275 $280 -$5
Michigan Dry $255 $265 -$10
Minnesota Dry $270 $275 -$5
Missouri Dry $285 $295 -$10
Ohio Dry $260 $270 -$10
South Dakota Dry $280 $290 -$10
Nebraska Dry $260 $270 -$10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $290 $310 -$20
Wet $100 $110 -$10
Illinois Dry $260 $265 -$5
Nebraska Dry $290 $310 -$20
Wet $100 $110 -$10
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $250 $265 -$15
Indiana Dry $260 $270 -$10
Iowa Dry $240 $255 -$15
Michigan Dry $258 $268 -$10
Minnesota Dry $240 $255 -$15
Nebraska Dry $255 $265 -$10
New York Dry $275 $290 -$15
North Dakota Dry $255 $275 -$20
Ohio Dry $250 $250 $0
South Dakota Dry $265 $280 -$15
Wisconsin Dry $250 $250 $0
Western Kansas Dry $335 $335 $0
Wet $140 $140 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $380 $375 $5
**Weekly Average: $259 $269 -$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 5/26/2022 $7.6500 $273.21
Soybean Meal 5/26/2022 $428.20
DDG Weekly Average Spot Price $259.00
DDG Value Relative to: 5/26 5/19
Corn 94.80% 96.16%
Soybean Meal 60.49% 63.25%
Cost Per Unit of Protein:
DDG $9.59 $9.96
Soybean Meal $9.01 $8.95
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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