Market Matters Blog

DTN Weekly DDG Price Higher on Average

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's weekly average spot price for domestic distillers dried grains was $3 higher versus one week ago.

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended Sept. 8 was $245 per ton, up $3 versus one week ago. DDG prices were higher in some plants where supplies are tight. Corn prices haven't moved much, with the DTN National Corn Index up 6 cents versus one week ago and soybean meal prices have been lower, but the weekly DDG price still managed to be higher on average.

The Energy Information Administration (EIA) said Wednesday domestic production of ethanol jumped 19,000 barrels per day (bpd) or 2% to a four-week high 989,000 bpd, 7.2% above the comparable period last year. Midwest ethanol production increased 20,000 bpd or 2.2% to 931,000 bpd through Sept. 2, a four-week high and 7% above a year ago.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Sep. 5 was 1.02%. The value of DDG relative to soybean meal was 57.27%, and the cost per unit of protein for DDG was $9.07, compared to the cost per unit of protein for soybean meal at $9.01.

In its weekly DDGS export update, the U.S. Grains Council said: "Tight logistics and increased export demand continue to push export DDGS offers higher. Barge CIF NOLA DDGS values are $2 metric ton (mt) higher for September positions this week while FOB NOLA offers are up $2 to $4/mt to $328 for spot positions. The DDGS container market is higher this week amid an uptick in ocean freight rates. Offers for 40-foot containers to Southeast Asia are up $4/mt on average this week at $408 for spot shipment."

USDA reported this past week that U.S. exports of DDGS totaled 1,059,300 mt in July, up from 1,011,133 mt in June, but down slightly from a year ago. Mexico was the top destination in July, taking 21% of U.S. exports, followed by Turkey and Vietnam. In the first seven months of 2022, U.S. exports of DDGS were up 4% from a year ago.

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 9/8/2022 9/1/2022
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 $270 $0
Wet $140 $140 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $235 $235 $0
Indiana Dry $225 $225 $0
Iowa Dry $245 $245 $0
Michigan Dry $210 $205 $5
Minnesota Dry $235 $225 $10
New York Dry $205 $205 $0
South Dakota Dry $260 $245 $15
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $280 $275 $5
Wet $95 $91 $4
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $240 $245 -$5
Iowa Dry $260 $260 $0
Michigan Dry $215 $215 $0
Minnesota Dry $255 $255 $0
Missouri Dry $275 $275 $0
Ohio Dry $245 $245 $0
South Dakota Dry $260 $260 $0
Nebraska Dry $300 $285 $15
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $270 $265 $5
Call for Available Wet* $0 $0 $0
Illinois Dry $235 $235 $0
Nebraska Dry $270 $265 $5
Call for Available Wet* $0 $0 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $220 $220 $0
Indiana Dry $215 $215 $0
Iowa Dry $230 $235 -$5
Michigan Dry $215 $215 $0
Minnesota Dry $220 $215 $5
Nebraska Dry $285 $275 $10
New York Dry $250 $250 $0
North Dakota Dry $230 $225 $5
Ohio Dry $225 $225 $0
South Dakota Dry $235 $230 $5
Wisconsin Dry $213 $210 $3
Western Kansas Dry $290 $290 $0
Wet $105 $105 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $338 $345 -$7
**Weekly Average: $245 $242 $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 9/8/2022 $6.7450 $240.8929
Soybean Meal 9/8/2022 $427.80
DDG Weekly Average Spot Price $245.00
DDG Value Relative to: 9/8/2022 9/1/2022
Corn 1.02% 1.03%
Soybean Meal 57.27% 53.54%
Cost Per Unit of Protein:
DDG $9.07 $8.96
Soybean Meal $9.01 $9.52
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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