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 July 27 was up $2 on average from one week ago. (DTN file photo)

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended July 27 was $203 per ton, up $2 on average from one week ago. DDG prices were mixed but higher on average as plant production rose again, leaving supplies plentiful. The extreme heat that blanketed most of the U.S. this past week also caused cattle to lose their appetite.

The Energy Information Administration (EIA) at midweek reported for the week ended July 21, overall ethanol production in the United States averaged 1.094 million barrels per day (bpd), Energy Information Administration data show, up 24,000 bpd week-on-week and 73,000 bpd, or 6.7%, higher than in the same week last year. Four-week average output at 1.064 million bpd was 38,000 bpd above the same four weeks in 2022. Midwest ethanol production averaged 1.02 million bpd, up 12,000 bpd week-on-week and 58,000 bpd, or 5.7%, higher than in the same week last year. Four-week average output at 999,000 bpd was 33,000 bpd above the same four weeks in 2022.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended July 27 was 1.07%. The value of DDG relative to soybean meal was 43.70 and the cost per unit of protein for DDG was $7.52 compared to the cost per unit of protein for soybean meal at $9.78.

In its weekly DDGS export update, the U.S. Grains Council said: "Barge CIF NOLA DDGS offers are mixed this week with August down $1 metric ton (mt) while September/October offers are steady/up $2 mt. FOB NOLA offers are higher with spot positions up $6 to $284 mt and deferred positions rising $4 to $5 from last week's values. U.S. rail rates are steady for nearby positions and up $2 to $3 for Q4. Finally, offers for 40-foot containers to Southeast Asia are down $2 mt at $318 for August shipment amid another week of lower ocean freight rates."

NOTE: All prices listed below can change at any time and are subject to confirmation from sellers.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT CURRENT CHANGE
COMPANY STATE 7/27/2023 7/20/2023
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $220 $205 $15
Wet $120 $120 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $225 $210 $15
Wet $110 $100 $10
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $210 $205 $5
Indiana Dry $200 $195 $5
Iowa Dry $205 $200 $5
Michigan Dry $195 $190 $5
Minnesota Dry $195 $190 $5
New York Dry $210 $210 $0
South Dakota Dry $210 $210 $0
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $200 $195 $5
Wet $70 $70 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $240 $235 $5
Iowa Dry $220 $215 $5
Michigan Dry $250 $230 $20
Minnesota Dry $215 $210 $5
Missouri Dry $245 $245 $0
Ohio Dry $240 $230 $10
South Dakota Dry $225 $215 $10
Nebraska Dry $220 $215 $5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $205 $235 -$30
Wet* $80 $85 -$5
Ill SOLD OUT JUL/AU Dry $0 $0 $0
Nebraska Dry $205 $235 -$30
Wet* $80 $85 -$5
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $200 $200 $0
Indiana Dry $190 $190 $0
Iowa Dry $195 $195 $0
Michigan Dry $205 $205 $0
Minnesota Dry $190 $190 $0
Nebraska Dry $195 $195 $0
New York Dry $240 $240 $0
North Dakota Dry $185 $188 -$3
Ohio Dry $195 $195 $0
South Dakota Dry $195 $200 -$5
Wisconsin Dry $195 $195 $0
Fox River Valley Ethanol, Oshkosh WI 715-709-0269
Dry $190 $190 $0
Western Kansas Dry $235 $235 $0
Wet $85 $87 -$2
**Weekly Average: $203 $201 $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 7/27/2023 $5.3325 $190.4465
Soybean Meal 7/27/2023 $464.50
DDG Weekly Average Spot Price 7/27/2023 $203.00
DDG Value Relative to: 7/27 7/20
Corn 1.07% 1.05%
Soybean Meal 43.70% 45.63%
Cost Per Unit of Protein:
DDG $7.52 $7.44
Soybean Meal $9.78 $9.27
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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