Market Matters Blog

DDG Prices Steady

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for dried distillers grains was at $148 per ton, unchanged from last week, as prices remain firm, thanks in part to high-priced soymeal. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The average distillers dried grain (DDG) spot price from the 39 locations where DTN collected bids was $148 for the week ended Feb. 22, unchanged on average versus a week ago.

Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Feb. 22 was at 112.99%, and the value of DDG relative to soybean meal was at 39.26%. The cost per unit of protein for DDG was $5.48, compared to the cost per unit of protein for soybean meal at $7.93.

Merchandisers noted that domestic prices were mixed, but overall remain firm, especially given the high prices seen for soymeal. On a per unit of protein value, DDG is still cheaper than soymeal.

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As the weather warms up, we may see a seasonal slowdown in demand, but for now, the market remains steady. The Asian market was quiet last week during the Chinese New Year and Tet holiday in Vietnam, but buyers are slowly returning.

The U.S. Grains Council (USGC) said in its weekly price update that merchandisers reported increased interest this week from Asian markets, including Indonesia and Vietnam. Prices for 40-foot containers to Indonesia (Jakarta) and Vietnam (HCMC) are up modestly this week from last, and on average, DDGS destined for Southeast Asia increased $2 per metric ton (mt) this week.

Barge CIF NOLA (New Orleans, Louisiana) prices are $8/mt higher this week, while FOB (free on board -- the buyer pays for transportation of the goods) Gulf DDGS values are also up $7/mt. High water has resulted in reduced tow sizes north- and south-bound on the Lower Mississippi River to the Gulf, with expectations this will continue for the foreseeable future. Baton Rouge is not expected to crest until the middle of March around 40 feet. New Orleans is not expected to crest until the second half of March at around 15 feet.

The conditions on the Ohio and Illinois rivers are horrible, as flooding has shut down all barge movements. The American Commercial Barge Line noted in its Thursday update that Dresden Lock (IR 271), Marseilles Lock (IR 245), and Starved Rock Lock (IR 231) are all currently closed and are not expected to resume operations through this area until at least March 2. In response, the CBOT declared force majeure due to load-out impossibility at a majority of corn regular shipping stations on the Illinois River because of high water levels and/or flooding.

COMPANY STATE 2/22/2018 2/14/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $170 $170 $0
Modified $85 $85 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $150 $150 $0
Indiana Dry $155 $150 $5
Iowa Dry $140 $140 $0
Michigan Dry $160 $160 $0
Minnesota Dry $140 $135 $5
North Dakota Dry $150 $148 $2
New York Dry $165 $165 $0
South Dakota Dry $140 $145 -$5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $155 $155 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $165 $165 $0
Iowa Dry $142 $138 $4
Michigan Dry $170 $170 $0
Minnesota Dry $140 $138 $2
Missouri Dry $160 $160 $0
Ohio Dry $165 $165 $0
South Dakota Dry $140 $140 $0
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United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $150 $150 $0
Wet $50 $50 $0
Illinois Dry $155 $155 $0
Nebraska Dry $150 $150 $0
Wet $50 $50 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $150 $150 $0
Indiana Dry $145 $145 $0
Iowa Dry $140 $140 $0
Michigan Dry $150 $150 $0
Minnesota Dry $135 $135 $0
Nebraska Dry $145 $145 $0
New York Dry $165 $165 $0
North Dakota Dry $150 $150 $0
Ohio Dry $150 $150 $0
South Dakota Dry $140 $140 $0
Wisconsin Dry $140 $140 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $145 $145 $0
Iowa Dry $135 $135 $0
Minnesota Dry $135 $135 $0
Nebraska Dry $150 $150 $0
Ohio Dry $145 $145 $0
South Dakota Dry $138 $138 $0
California $215 $207 $8
Western Milling, Goshen, California (559-302-1074)
California Dry $218 $210 $8
*Prices listed per ton.
Weekly Average $148 $148 $0
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.

Settlement Price: Quote Date Bushel Short Ton
Corn 2/22/2018 $3.6675 $130.98
Soybean Meal 2/22/2018 $376.90
DDG Weekly Average Spot Price $148.00
DDG Value Relative to: 2/22 2/15
Corn 112.99% 112.68%
Soybean Meal 39.26% 39.60%
Cost Per Unit of Protein:
DDG $5.48 $5.48
Soybean Meal $7.93 $7.87
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

Follow her on Twitter @MaryCKenn


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