Market Matters Blog

DTN Weekly DDG Average Price Turns Higher

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 July 14 was $3 higher 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 July 14 $223 per ton, up $3 on average versus one week ago. Prices turned the corner finally, thanks to the ongoing rally in soybean meal and tighter DDG supplies as production levels have been dropping. Cash corn prices, thanks in part to stronger basis, have also rallied and are close to values seen one week ago.

EIA said Wednesday that production at domestic ethanol plants fell a fourth week, sliding 39,000 barrels per day (bpd) or 3.7% in the week ended July 8 to 1.005 million bpd, an eight-week low. Production for the week profiled was 36,000 bpd or 3.5% lower than the same week in 2021. Plant output averaged 1.039 million bpd during the four weeks ended July 8, down 14,000 bpd versus the same four weeks a year earlier.

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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended July 14 was 103.21%. The value of DDG relative to soybean meal was 50.81%, and the cost per unit of protein for DDG was $8.26, compared to the cost per unit of protein for soybean meal at $9.24. (My table moved to September futures now since July went off the board.)

In its weekly DDGS export update, the U.S. Grains Council said: "On the export market, offers are firming amid barge tightness and the uptick in domestic vales. Brokers and exporters note that trade has been quiet this week but offers are creeping higher anyway. Barge CIF NOLA offers are up $20 metric ton (mt) for August-October positions while FOB Gulf offers are up $5 to $6/mt for the same months. The recent slide in ocean freight rates has pulled offers for 40-foot containers to Southeast Asia lower, with the average rate this week at $396/mt, down $10 from last 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 7/14/2022 7/7/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $240 $235 $5
Wet $140 $135 $5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $250 $230 $20
Wet $125 $115 $10
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $220 $215 $5
Indiana Dry $220 $220 $0
Iowa Dry $218 $218 $0
Michigan Dry $240 $235 $5
Minnesota Dry $185 $190 -$5
New York Dry $200 $220 -$20
South Dakota Dry $210 $210 $0
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $225 $225 $0
Wet $65 $65 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $246 $240 $6
Iowa Dry $225 $220 $5
Michigan Dry $235 $235 $0
Minnesota Dry $225 $225 $0
Missouri Dry $265 $265 $0
Ohio Dry $245 $240 $5
South Dakota Dry $230 $245 -$15
Nebraska Dry $230 $225 $5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $230 $230 $0
Wet $90 $90 $0
Illinois Dry $230 $230 $0
Nebraska Dry $220 $220 $0
Wet $90 $90 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $215 $215 $0
Indiana Dry $215 $215 $0
Iowa Dry $190 $190 $0
Michigan Dry $220 $220 $0
Minnesota Dry $190 $190 $0
Nebraska Dry $220 $195 $25
New York Dry $230 $225 $5
North Dakota Dry $210 $205 $5
Ohio Dry $215 $210 $5
South Dakota Dry $210 $200 $10
Wisconsin Dry $210 $205 $5
Western Kansas Dry $265 $265 $0
Wet $110 $110 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $330 $335 -$5
**Weekly Average: $223 $220 $3
(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 7/14/2022 $6.0500 $216.07
Soybean Meal 7/14/2022 $438.90
DDG Weekly Average Spot Price $223.00
DDG Value Relative to: 7/14 7/7
Corn 103.21% 82.46%
Soybean Meal 50.81% 46.81%
Cost Per Unit of Protein:
DDG $8.26 $8.15
Soybean Meal $9.24 $9.89

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

Follow her on Twitter @MaryCKenn

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