Market Matters Blog
DTN Weekly Average DDG Price Higher Again
OMAHA (DTN) -- The average price for domestic distillers dried grains (DDG) from the 40 locations DTN contacted with spot offers for the week ended Sept. 24 was $155 per ton, up $4 on average from the prior week.
DDG prices pushed higher again this week even after the cash corn price dropped. Buyers note that domestic demand remains strong amid tight supplies. The DTN National Corn Index on Sept. 24 was 11 cents lower versus one week ago.
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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Sept. 24 was 119.39%, above the five-year average of 109%. The value of DDG relative to soybean meal was 46.43%. The cost per unit of protein for DDG was $5.54, compared to the cost per unit of protein for soybean meal at $7.03.
In its weekly export DDGS price report, the U.S. Grains Council said: "Brokers report that international destinations are working on covering Q4 and Q1 2021 needs and are checking prices daily. With FOB Gulf soymeal and DDGS prices both moving higher this month, end users are reportedly nervous about further price increases, leading to more frequent price checks. Barge CIF NOLA offers are $11-$16 per metric ton (mt) higher this week while FOB Gulf offers are up $13/mt for spot positions and $11-$12/mt for deferred. U.S. rail rates are $7-$8/mt higher while 40-foot containers to Southeast Asia are up $5-$6/mt, averaging $258. Offers for containers to Malaysia and Vietnam have posted the largest price increases this week, up $10-$12/mt."
The Energy Information Administration reported that, for the week ended Sept. 18, domestic ethanol inventories increased for the first time in three weeks as implied demand continued the seesaw pattern seen over the past four weeks. Ethanol plant production fell for a second consecutive week, sliding 20,000 barrels per day (bpd) to 906,000 bpd, a 12-week low and 3.9% lower than the corresponding week in 2019. Four-week average output is down 72,000 bpd against year ago at 924,000 bpd.
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 | 9/24/2020 | 9/17/2020 | ||
Bartlett and Company, Kansas City, MO (816 714 3413) | |||||
Missouri | Dry | $167 | $160 | $7 | |
Wet | $84 | $80 | $4 | ||
Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
Missouri Subject | Dry | $158 | $160 | -$2 | |
Wet | $78 | $85 | -$7 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $165 | $160 | $5 | |
Indiana | Dry | $160 | $150 | $10 | |
Iowa | Dry | $150 | $145 | $5 | |
Michigan | Dry | $155 | $150 | $5 | |
Minnesota | Dry | $145 | $140 | $5 | |
North Dakota | Dry | $145 | $130 | $15 | |
New York | Dry | $160 | $155 | $5 | |
South Dakota | Dry | $140 | $135 | $5 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $160 | $155 | $5 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $160 | $160 | $0 | |
Iowa | Dry | $150 | $145 | $5 | |
Michigan | Dry | $155 | $150 | $5 | |
Minnesota | Dry | $150 | $140 | $10 | |
Missouri | Dry | $170 | $160 | $10 | |
Ohio | Dry | $160 | $160 | $0 | |
South Dakota | Dry | $155 | $140 | $15 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $145 | $145 | $0 | |
Wet | $50 | $50 | $0 | ||
Illinois | Dry | $169 | $166 | $3 | |
Nebraska | Dry | $145 | $145 | $0 | |
Wet | $50 | $50 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $160 | $160 | $0 | |
Indiana | Dry | $160 | $160 | $0 | |
Iowa | Dry | $150 | $150 | $0 | |
Michigan | Dry | $155 | $155 | $0 | |
Minnesota | Dry | $145 | $145 | $0 | |
Nebraska | Dry | $155 | $155 | $0 | |
New York | Dry | $170 | $170 | $0 | |
North Dakota | Dry | $140 | $140 | $0 | |
Ohio | Dry | $160 | $160 | $0 | |
South Dakota | Dry | $140 | $140 | $0 | |
Wisconsin | Dry | $150 | $150 | $0 | |
Valero Energy Corp, San Antonio Texas | |||||
Indiana | Dry | $170 | $160 | $10 | |
Iowa | Dry | $0 | $0 | $0 | |
Minnesota | Dry | $0 | $0 | $0 | |
Nebraska | Dry | $0 | $0 | $0 | |
Ohio | Dry | $160 | $150 | $10 | |
South Dakota | Dry | $0 | $0 | $0 | |
California | Dry | $0 | $0 | $0 | |
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $228 | $213 | $15 | |
*Prices listed per ton. | |||||
Weekly Average | $155 | $151 | $4 | ||
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 | 9/24/2020 | $3.6350 | $129.82 |
Soybean Meal | 9/24/2020 | $333.80 | |
DDG Weekly Average Spot Price | $155.00 | ||
DDG Value Relative to: | 9/24 | 9/17 | |
Corn | 119.39% | 112.67% | |
Soybean Meal | 46.43% | 45.70% | |
Cost Per Unit of Protein: | |||
DDG | $5.54 | $5.59 | |
Soybean Meal | $7.03 | $6.96 | |
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
(c) Copyright 2020 DTN, LLC. All rights reserved.
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