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 Jan. 5 was $2 higher on average than one week ago. (DTN file photo)

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 35 locations reporting for the week ended Jan. 5 was $271 per ton, up $2 on average from one week ago. Prices were mixed, but overall, ended up slightly higher on average.

DDG prices continue higher as plant production was lower again last week, but once plants pick up the pace, that will likely affect prices. There is still good demand from feeders, but the recent winter storms have been rough on truck and rail logistics. Strength in the soybean meal cash price also is giving support to DDG prices.

The Energy Information Administration (EIA) reported domestic ethanol production in the final week of December sank to the lowest level since just after Winter Storm Uri in February 2021. EIA reported domestic ethanol production tumbled 119,000 barrels per day (bpd) to average 844,000 million bpd last week, the lowest level since the week ended Feb. 19, 2021, while 19.5% lower than a year ago. Over the four weeks ended Dec. 30, production averaged 974,000 bpd, down 87,000 bpd from the same four weeks in 2021.

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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 5 was 1.16%. The value of DDG relative to soybean meal was 55.45%, and the cost per unit of protein for DDG was $10.04 compared to the cost per unit of protein for soybean meal at $10.29.

In its weekly DDGS export update, the U.S. Grains Council said: "On the export market, Barge CIF NOLA prices are higher for a fourth week with spot offers up $1 to $2 metric ton (mt). FOB NOLA offers are $3 to $4/mt also higher and are showing a slightly inverted market. U.S. rail rates are $4 to $6/mt lower this week as logistics are still untangling from the past few weeks. Finally, offers for 40-foot containers destined for Southeast Asia are steady this week at $423 for February shipment."

The USDA reported this week that U.S. exports of DDGS totaled 728,409 mt in November, down from 798,100 mt in October and down 28% from a year ago. Mexico was the top destination in November, taking 28% of U.S. exports and was followed by South Korea and Vietnam. In the first 11 months of 2022, U.S. exports of DDGS were down 5% 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 1/5/2023 12/28/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $310 $285 $25
Wet $165 $165 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $300 $285 $15
Wet $165 $150 $15
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $245 $250 -$5
Indiana Dry $240 $240 $0
Iowa Dry $265 $265 $0
Michigan Dry $230 $230 $0
Minnesota Dry $270 $270 $0
New York Dry $265 $265 $0
South Dakota Dry $305 $310 -$5
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $280 $280 $0
Wet $100 $90 $10
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $270 $265 $5
Iowa Dry $305 $305 $0
Michigan Dry $260 $260 $0
Minnesota Dry $300 $300 $0
Missouri Dry $310 $310 $0
Ohio Dry $265 $265 $0
South Dakota Dry $305 $305 $0
Nebraska Dry $310 $310 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $285 $275 $10
Call for Available Wet* $0 $0 $0
Illinois Dry $250 $250 $0
Nebraska Dry $285 $275 $10
Call for Available Wet* $0 $0 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $235 $250 -$15
Indiana Dry $245 $250 -$5
Iowa Dry $250 $250 $0
Michigan Dry $245 $245 $0
Minnesota Dry $255 $255 $0
Nebraska Dry $310 $300 $10
New York Dry $280 $280 $0
North Dakota Dry $275 $275 $0
Ohio Dry $260 $260 $0
South Dakota Dry $275 $265 $10
Wisconsin Dry $230 $230 $0
Fox River Valley Ethanol, Oshkosh WI 715-709-0269
Dry $235 $235 $0
Western Kansas Dry $275 $275 $0
Wet $110 $110 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $365 $365 $0
**Weekly Average: $271 $269 $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 1/5/2023 $6.5275 $233.1250
Soybean Meal 1/5/2023 $488.70
DDG Weekly Average Spot Price $271.00
DDG Value Relative to: 1/5/2023 12/28/2022
Corn 1.16% 1.10%
Soybean Meal 55.45% 57.69%
Cost Per Unit of Protein:
DDG $10.04 $9.96
Soybean Meal $10.29 $9.82
Notes:
Corn and soybean prices taken 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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