Market Matters Blog
DTN Weekly Average DDG Price Higher Again This Week
MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended Sept. 1 was $242 per ton, up $2 versus one week ago. DDG prices were higher again this week as demand in the feed sector has picked up as supplies are not plentiful where plants have taken maintenance time, causing plant production to drop last week. U.S. Grains noted, "One factor keeping the DDGS market supported is the fact that production in July was below 2021 levels. According to the USDA's latest Grain Crushing report, processors produced 1.934 million tons of DDGS in July, below the 1.97 million tons produced in the same month last year." Here is a link to the entire NASS report: https://usda.library.cornell.edu/…
The Energy Information Administration (EIA) said Wednesday domestic production of ethanol dropped 17,000 barrels per day (bpd) or 1.7% to 970,000 bpd, the lowest level since the end of April, yet 7.2% above the same week last year. Midwest ethanol production at 911,000 bpd through last week was down 17,000 bpd on the week to the lowest level since the week ended April 22.
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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Sep. 5 was 1.03%. The value of DDG relative to soybean meal was 53.54%, and the cost per unit of protein for DDG was $8.96, compared to the cost per unit of protein for soybean meal at $9.52. 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: "Tightening logistics for September and early Q4 shipments have pushed barge rates higher over the past few weeks. Barge CIF NOLA DDGS values are $12 metric ton (mt) higher for September positions this week while FOB NOLA offers are up $10/mt to $324 this week for spot positions. The DDGS container market was mixed with early week weakness in ocean freight pulling offers lower until Thursday's rally in freight values. Offers for 40-foot containers to Southeast Asia are up $7/mt on average this week at $404 for spot 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 | 9/1/2022 | 8/25/2022 | ||
| Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
| Missouri | Dry | $265 | $265 | $0 | |
| Wet | $155 | $155 | $0 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Dry | $270 | $280 | -$10 | ||
| Wet | $140 | $145 | -$5 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $235 | $220 | $15 | |
| Indiana | Dry | $225 | $210 | $15 | |
| Iowa | Dry | $245 | $230 | $15 | |
| Michigan | Dry | $205 | $190 | $15 | |
| Minnesota | Dry | $225 | $225 | $0 | |
| New York | Dry | $205 | $205 | $0 | |
| South Dakota | Dry | $245 | $235 | $10 | |
| MGP Ingredients, Atchison, KS (800-255-0302) | |||||
| Dry | $275 | $265 | $10 | ||
| Wet | $91 | $89 | $2 | ||
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $245 | $245 | $0 | |
| Iowa | Dry | $260 | $260 | $0 | |
| Michigan | Dry | $215 | $215 | $0 | |
| Minnesota | Dry | $255 | $250 | $5 | |
| Missouri | Dry | $275 | $275 | $0 | |
| Ohio | Dry | $245 | $245 | $0 | |
| South Dakota | Dry | $260 | $260 | $0 | |
| Nebraska | Dry | $285 | $285 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $265 | $265 | $0 | |
| Wet | $95 | $95 | $0 | ||
| Illinois | Dry | $235 | $225 | $10 | |
| Nebraska | Dry | $265 | $265 | $0 | |
| Wet | $95 | $95 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $220 | $220 | $0 | |
| Indiana | Dry | $215 | $215 | $0 | |
| Iowa | Dry | $235 | $235 | $0 | |
| Michigan | Dry | $215 | $215 | $0 | |
| Minnesota | Dry | $215 | $215 | $0 | |
| Nebraska | Dry | $275 | $275 | $0 | |
| New York | Dry | $250 | $250 | $0 | |
| North Dakota | Dry | $225 | $225 | $0 | |
| Ohio | Dry | $225 | $225 | $0 | |
| South Dakota | Dry | $230 | $230 | $0 | |
| Wisconsin | Dry | $210 | $210 | $0 | |
| Western Kansas | Dry | $290 | $290 | $0 | |
| Wet | $105 | $105 | $0 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $345 | $340 | $5 | |
| **Weekly Average: | $242 | $240 | $2 | ||
| (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 | 9/1/2022 | $6.5825 | $235.0893 |
| Soybean Meal | 9/1/2022 | $452.00 | |
| DDG Weekly Average Spot Price | $242.00 | ||
| DDG Value Relative to: | 9/1/2022 | 8/25/2022 | |
| Corn | 1.03% | 1.02% | |
| Soybean Meal | 53.54% | 52.40% | |
| Cost Per Unit of Protein: | |||
| DDG | $8.96 | $8.89 | |
| Soybean Meal | $9.52 | $9.64 | |
| 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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