Market Matters Blog
DTN Weekly DDG Average Price Turns Lower
MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended Aug. 4 was $229 per ton, down $3 versus one week ago. Spot demand is slow this time of year and with plant production increasing, there are plenty of DDG supplies to move.
The Energy Information Administration (EIA) said Wednesday output at domestic ethanol plants rose 2.2% or 22,000 barrels per day (bpd) to 1.043 million bpd, 3% higher than the same week in 2021. Ethanol plant output averaged 1.026 million bpd during the four weeks ended July 29, up 2,000 bpd versus the same four weeks a year earlier.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Aug. 4 was 1.07%. The value of DDG relative to soybean meal was 44.58%, and the cost per unit of protein for DDG was $8.48, compared to the cost per unit of protein for soybean meal at $10.81. DTN's estimates moved to utilizing September futures since July has gone off the board.
In its weekly DDGS export update, the U.S. Grains Council said: "Barge CIF NOLA DDGS values are down $15 metric ton (mt) for spot shipment but saw better support in deferred positions. FOB NOLA values are down $11/mt for last-half August and September shipment and down $16/mt for October. Offers for 40-foot containers to Southeast Asia are down $3/mt this week amid the pullback in ocean freight and domestic values.
"U.S. rail rates are lower this week as logistics issues continue to hamper than market. Offers for rail delivered DDGS into California or Texas are down $2 to $3/mt this week while offers into the PNW fell $15/mt."
USDA reported Thursday that U.S. exports of DDGS totaled 1,011,133 mt in June, up from 966,108 mt in May and up 8% from a year ago. Vietnam was the top destination in June, taking 20% of U.S. exports and was followed by Mexico and Turkey. In the first six months of 2022, U.S. exports of DDGS were up 5%.
NOTE: All prices listed below can change at any time and are subject to confirmation from seller.
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | CURRENT | CHANGE | ||
| COMPANY | STATE | 8/4/2022 | 7/28/2022 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $260 | $260 | $0 | |
| Wet | $155 | $155 | $0 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Dry | $260 | $265 | -$5 | ||
| Wet | $125 | $130 | -$5 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $215 | $220 | -$5 | |
| Indiana | Dry | $215 | $215 | $0 | |
| Iowa | Dry | $220 | $225 | -$5 | |
| Michigan | Dry | $200 | $205 | -$5 | |
| Minnesota | Dry | $200 | $200 | $0 | |
| New York | Dry | $205 | $200 | $5 | |
| South Dakota | Dry | $215 | $215 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302) | |||||
| Dry | $240 | $235 | $5 | ||
| Wet | $70 | $70 | $0 | ||
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $245 | $245 | $0 | |
| Iowa | Dry | $245 | $245 | $0 | |
| Michigan | Dry | $235 | $235 | $0 | |
| Minnesota | Dry | $245 | $245 | $0 | |
| Missouri | Dry | $275 | $275 | $0 | |
| Ohio | Dry | $245 | $245 | $0 | |
| South Dakota | Dry | $245 | $245 | $0 | |
| Nebraska | Dry | $245 | $245 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $245 | $240 | $5 | |
| Wet | $90 | $90 | $0 | ||
| Illinois | Dry | $215 | $220 | -$5 | |
| Nebraska | Dry | $240 | $230 | $10 | |
| Wet | $90 | $90 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $220 | $227 | -$7 | |
| Indiana | Dry | $210 | $230 | -$20 | |
| Iowa | Dry | $215 | $210 | $5 | |
| Michigan | Dry | $210 | $235 | -$25 | |
| Minnesota | Dry | $210 | $210 | $0 | |
| Nebraska | Dry | $235 | $235 | $0 | |
| New York | Dry | $245 | $245 | $0 | |
| North Dakota | Dry | $210 | $220 | -$10 | |
| Ohio | Dry | $215 | $230 | -$15 | |
| South Dakota | Dry | $215 | $225 | -$10 | |
| Wisconsin | Dry | $210 | $225 | -$15 | |
| Western Kansas | Dry | $245 | $245 | $0 | |
| Wet | $105 | $105 | $0 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | ||||
| **Weekly Average: | $229 | $232 | -$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 | 8/4/2022 | $6.0225 | $215.09 |
| Soybean Meal | 8/4/2022 | $513.70 | |
| DDG Weekly Average Spot Price | $229.00 | ||
| DDG Value Relative to: | 8/4 | 7/28 | |
| Corn | 1.07% | 1.06% | |
| Soybean Meal | 44.58% | 47.37% | |
| Cost Per Unit of Protein: | |||
| DDG | $8.48 | $8.59 | |
| Soybean Meal | $10.81 | $10.31 | |
| 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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