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 spot price for domestic distillers dried grains for the week ended Sept. 29 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. 29 was $262 per ton, up $4 on average versus one week ago. DDG prices were mixed, with some states pulling back, but the ones that showed higher prices might be tight on supplies. The drop in soybean meal recently has added pressure to the DDG and other feedstuff markets, along with a lower cash corn market. The DTN National Corn Index was 27 cents lower Thursday versus one week ago.

The Energy Information Administration (EIA) Wednesday showed another sharp downturn in ethanol production in the United States through Sept. 23. Overall domestic ethanol production dropped for a third week last week, tumbling 46,000 barrels per day (bpd) to 855,000 bpd, the lowest level since the week ended Feb. 19, 2021, when output averaged 658,000 bpd while down 6.5% from this time last year. A 51,000 bpd or 6% reduction in Midwest ethanol production to 799,000 bpd led the decline.

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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. 29 was 1.10%. The value of DDG relative to soybean meal was 64.04%, and the cost per unit of protein for DDG was $9.70 compared to the cost per unit of protein for soybean meal at $8.61.

In its weekly DDGS export update, the U.S. Grains Council said: "On the export market, Barge CIF NOLA offers are steady this week as rising barge freight offsets lower product values. FOB NOLA offers are down $2 to $3 metric ton (mt) for spot positions and steady for December or January shipment. The pullback in ocean freight rates left the containerized DDGS market down $4/mt with product destined for Southeast Asia averaging $402/mt this week."

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 9/29/2022 9/22/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $290 $285 $5
Wet $165 $165 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $300 $290 $10
Wet $155 $150 $5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $240 $240 $0
Indiana Dry $220 $225 -$5
Iowa Dry $260 $260 $0
Michigan Dry $220 $220 $0
Minnesota Dry $245 $245 $0
New York Dry $240 $240 $0
South Dakota Dry $270 $265 $5
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $305 $315 -$10
Wet $110 $105 $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $250 $250 $0
Iowa Dry $300 $300 $0
Michigan Dry $235 $225 $10
Minnesota Dry $300 $300 $0
Missouri Dry $285 $285 $0
Ohio Dry $250 $245 $5
South Dakota Dry $300 $290 $10
Nebraska Dry $315 $325 -$10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $295 $285 $10
Call for Available Wet* $0 $0 $0
Illinois Dry $240 $240 $0
Nebraska Dry $295 $285 $10
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 $260 $240 $20
Michigan Dry $220 $215 $5
Minnesota Dry $250 $240 $10
Nebraska Dry $295 $295 $0
New York Dry $260 $260 $0
North Dakota Dry $240 $240 $0
Ohio Dry $225 $225 $0
South Dakota Dry $260 $240 $20
Wisconsin Dry $220 $215 $5
Western Kansas Dry $290 $290 $0
Wet $105 $105 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $348 $352 -$4
**Weekly Average: $262 $258 $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 9/29/2022 $6.6950 $239.1072
Soybean Meal 9/29/2022 $409.10
DDG Weekly Average Spot Price $262.00
DDG Value Relative to: 9/29/2022 9/22/2002
Corn 1.10% 1.05%
Soybean Meal 64.04% 57.86%
Cost Per Unit of Protein:
DDG $9.70 $9.56
Soybean Meal $8.61 $9.39
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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