Market Matters Blog

DTN Weekly DDG Price Lower 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 Oct. 13 was $3 lower 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 Oct. 20 was $249 per ton, down $3 on average versus one week ago. DDG supplies are plentiful with the increase in plant production again last week, but feed demand continues as feeders are not willing to pull DDG from rations. On top of that, cash corn and soybean meal prices are expensive and cash corn is not that easy to buy, even with the higher basis levels.

The Energy Information Administration (EIA) Wednesday noted domestic ethanol production increased for a third straight week through Oct. 14, jumping 9% to a 10-week high. The four-week average production at 923,000 barrels per day (bpd) was 82,000 bpd lower than the corresponding four weeks last year. Midwest ethanol production also continued higher for a third week, surging 80,000 bpd to 961,000 bpd.

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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Oct. 20 was 1.02%. The value of DDG relative to soybean meal was 60.25%, and the cost per unit of protein for DDG was $9.22 compared to the cost per unit of protein for soybean meal at $8.70.

In its weekly DDGS export update, the U.S. Grains Council said: "On the export market, Barge CIF NOLA prices are $10 lower as the logistics hurdles continue to ease. FOB NOLA offers are down similar amounts this week with November offers at $336 metric ton (mt). Offers for 40-foot containers to Asia are steady/higher as increased product availability, river navigation issues, volatile freight markets exert their respective impacts. The average offer for containerized DDGS to Southeast Asia hit $395/mt this week."

The latest river update shows dredging is ongoing at lower Mississippi River 681, below Memphis, as groundings have closed that portion of the river on and off for over a week. "Cairo is very congested with no fleet space, which is leading to additional delays aside from low water. Mile 742 is closed due to dredging and will reopen Saturday," said Tom Russell, RMG.

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 10/20/2022 10/13/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $285 $295 -$10
Wet $160 $165 -$5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $280 $300 -$20
Wet $150 $165 -$15
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $235 $240 -$5
Indiana Dry $210 $215 -$5
Iowa Dry $240 $250 -$10
Michigan Dry $220 $220 $0
Minnesota Dry $235 $240 -$5
New York Dry $255 $240 $15
South Dakota Dry $255 $265 -$10
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $285 $270 $15
Wet $101 $107 -$6
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $240 $245 -$5
Iowa SUBJECT Dry $270 $270 $0
Michigan Dry $240 $235 $5
Minnesota SUBJECT Dry $270 $270 $0
Missouri SUBJECT Dry $270 $270 $0
Ohio Dry $240 $245 -$5
South Dakota SUBJ. Dry $280 $280 $0
Nebraska Dry $280 $290 -$10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $290 $285 $5
Call for Available Wet* $0 $0 $0
Illinois Dry $235 $240 -$5
Nebraska Dry $290 $285 $5
Call for Available Wet* $0 $0 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $220 $225 -$5
Indiana Dry $215 $215 $0
Iowa Dry $225 $240 -$15
Michigan Dry $220 $220 $0
Minnesota Dry $225 $240 -$15
Nebraska Dry $265 $270 -$5
New York Dry $250 $250 $0
North Dakota Dry $250 $250 $0
Ohio Dry $225 $225 $0
South Dakota Dry $250 $250 $0
Wisconsin Dry $215 $215 $0
Western Kansas Dry $270 $290 -$20
Wet $110 $110 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $340 $348 -$4
**Weekly Average: $249 $252 -$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 10/20/2022 $6.8400 $244.2857
Soybean Meal 10/20/2022 $413.30
DDG Weekly Average Spot Price $249.00
DDG Value Relative to: 10/20/2022 10/13/22
Corn 1.02% 1.01%
Soybean Meal 60.25% 60.22%
Cost Per Unit of Protein:
DDG $9.22 $9.33
Soybean Meal $8.70 $8.81
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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