Market Matters Blog

DTN Weekly DDG Average Price Higher as Supplies Tighten

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 Sep. 22 was $4 higher on average versus one week ago. (DTN file photo)

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended Sept. 22 was $258 per ton, up $4 on average versus one week ago. DDG prices are higher again on average as plant production fell again, making supplies tight, especially with buyers interested in the spot market right now.

The Energy Information Administration (EIA) said Wednesday domestic ethanol production slid to a near 19-month low through the week-ended Sept. 16. Total ethanol production in the United States dropped a second week, sinking 62,000 barrels per day (bpd) to 901,000 bpd through Sept. 16, the lowest level since end of February 2021 while down 2.7% against this time last year. Midwest ethanol production was also sharply lower for a second week, sinking 52,000 bpd to 850,000 bpd, the lowest output rate since the week ended Feb. 26, 2021.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Sep. 5 was 1.05%. The value of DDG relative to soybean meal was 57.86%, and the cost per unit of protein for DDG was $9.56, compared to the cost per unit of protein for soybean meal at $9.39.

In its weekly DDGS export update, the U.S. Grains Council said: "On the export market, Barge CIF NOLA offers are $12-$16 per metric ton (mt) higher this week as logistics during the new crop harvest season are becoming tight. FOB NOLA offers are up $11-$14/mt, and U.S. rail delivered DDGS are generally $5-$10/mt higher. The ocean freight market's volatility this week has left the containerized DDGS market essentially flat, but offers for product into the Indonesia and Malaysia are down $5-$7/mt. The average offer for containerized DDGS to Southeast Asia is down $6/mt this week at $406 for October shipment."

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 9/22/2022 9/15/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $285 $275 $10
Wet $165 $160 $5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $290 $285 $5
Wet $150 $150 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $240 $235 $5
Indiana Dry $225 $225 $0
Iowa Dry $260 $245 $15
Michigan Dry $220 $210 $10
Minnesota Dry $245 $245 $0
New York Dry $240 $205 $35
South Dakota Dry $265 $265 $0
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $315 $285 $30
Wet $105 $101 $4
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $250 $240 $10
Iowa Dry $300 $290 $10
Michigan Dry $225 $220 $5
Minnesota Dry $300 $275 $25
Missouri Dry $285 $285 $0
Ohio Dry $245 $240 $5
South Dakota Dry $290 $275 $15
Nebraska SUBJECT Dry $320 $320 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $285 $280 $5
Call for Available Wet* $0 $0 $0
Illinois Dry $240 $235 $5
Nebraska Dry $285 $280 $5
Call for Available Wet* $0 $0 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $235 $235 $0
Indiana Dry $230 $230 $0
Iowa Dry $240 $250 -$10
Michigan Dry $215 $220 -$5
Minnesota Dry $240 $240 $0
Nebraska Dry $295 $295 $0
New York Dry $260 $265 -$5
North Dakota Dry $240 $245 -$5
Ohio Dry $225 $230 -$5
South Dakota Dry $240 $240 $0
Wisconsin Dry $215 $220 -$5
Western Kansas Dry $290 $290 $0
Wet $105 $105 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $352 $345 $7
**Weekly Average: $258 $254 $4
(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 9/22/2022 $6.8825 $245.8036
Soybean Meal 9/22/2022 $445.90
DDG Weekly Average Spot Price $258.00
DDG Value Relative to: 9/22/2022 9/18/2002
Corn 1.05% 1.05%
Soybean Meal 57.86% 58.46%
Cost Per Unit of Protein:
DDG $9.56 $9.41
Soybean Meal $9.39 $9.15
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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