Market Matters Blog

DTN Weekly DDG Average Price Lower

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 June 9 was $5 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 June 9 was $245 per ton, down $5 on average versus one week ago. Prices continued lower due to lack of steady demand from feeders right now.

The Energy Information Administration report on Wednesday showed production at ethanol plants in the United States dropped 32,000 barrels per day (bpd), to 1.039 million bpd, through June 3, down 2.6% from the same week in 2021. Plant output averaged 1.029 million bpd during the four weeks ended June 3 -- 5,000 bpd lower than during the comparable four weeks a year ago.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended June 9 was 88.75%. The value of DDG relative to soybean meal was 57.31%, and the cost per unit of protein for DDG was $9.07, compared to the cost per unit of protein for soybean meal at $9.00.

In its weekly DDGS export update, the U.S. Grains Council said: "On the export market, Barge rates are steady/lower this week following last week's rally. DDGS Barge CIF NOLA are down $1 metric ton (mt) for June-August shipment while FOB Gulf offers are up $4-5/mt for June through August. Offers for 40-foot containers to Southeast Asia are down $2-3/mt depending on the destination as ocean freight rates posted another week of slightly lower values. The average offer for containerized DDGS to Southeast Asia hit $399/mt this week."

The U.S. Census Bureau said Tuesday U.S. exports of DDGS totaled 813,749 mt in April, down from 927,134 mt in March and down 6% from a year ago. Mexico was the top destination in April, taking 15% of U.S. exports and was followed by Vietnam and South Korea. In the first four months of 2022, U.S. exports of DDGS were up 7%.

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 6/9/2022 6/2/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $260 $260 $0
Wet $150 $150 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $245 $245 $0
Wet $125 $125 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $245 $245 $0
Indiana Dry $240 $240 $0
Iowa Dry $235 $240 -$5
Michigan Dry $235 $235 $0
Minnesota Dry $235 $235 $0
New York Dry $240 $240 $0
South Dakota Dry $260 $265 -$5
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $245 $240 $5
Wet $77 $78 -$1
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $257 $255 $2
Iowa Dry $240 $260 -$20
Michigan Dry $255 $255 $0
Minnesota Dry $250 $255 -$5
Missouri Dry $270 $270 $0
Ohio Dry $260 $255 $5
South Dakota Dry $240 $260 -$20
Nebraska Dry $240 $245 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $260 $270 -$10
Wet $90 $100 -$10
Illinois Dry $250 $250 $0
Nebraska Dry $260 $270 -$10
Wet $90 $100 -$10
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $240 $245 -$5
Indiana Dry $245 $255 -$10
Iowa Dry $220 $230 -$10
Michigan Dry $245 $252 -$7
Minnesota Dry $225 $240 -$15
Nebraska Dry $230 $235 -$5
New York Dry $250 $260 -$10
North Dakota Dry $250 $255 -$5
Ohio Dry $240 $250 -$10
South Dakota Dry $235 $255 -$20
Wisconsin Dry $235 $245 -$10
Western Kansas Dry $280 $300 -$20
Wet $125 $125 -$15
Western Milling, Goshen, California (559-302-1074)
California Dry $365 $370 -$5
**Weekly Average: $245 $250 -$5
(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 6/9/2022 $7.7300 $276.07
Soybean Meal 6/9/2022 $427.50
DDG Weekly Average Spot Price $245.00
DDG Value Relative to: 6/9 6/2
Corn 88.75% 95.86%
Soybean Meal 57.31% 60.25%
Cost Per Unit of Protein:
DDG $9.07 $9.26
Soybean Meal $9.00 $8.73
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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