Market Matters Blog

DTN Weekly DDG Price Slightly 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 during the week ended Sept. 23 was $1 lower on average versus one week ago. (DTN file photo)

OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Sept. 23 was $196 per ton, down $1 on average from one week ago. Domestic DDG prices were slightly lower on average as there is no issue with supplies right now according to some merchandisers. Export DDGs are struggling as poor availability and high cost of containers is affecting that market.

Wednesday's Energy Information Administration (EIA) report showed overall ethanol plant production declined after two weeks of higher output -- down 11,000 barrels per day (bpd) or 1.2% to 926,000 bpd. Some plants are taking seasonal maintenance which added to the lower production rates.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Sept. 23 was 103.16%. The value of DDG relative to soybean meal was 57.93% and the cost per unit of protein for DDG was $7.22, compared to the cost per unit of protein for soybean meal at $7.09.

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In its weekly DDGS export price update, the U.S. Grains Council said: "On the export market, DDGS values are slightly lower this week, though the reasoning remains unclear. Barge CIF NOLA offers are down $2 for spot positions and $5 to $6 for deferred while FOB Gulf offers are down $5 to $7 metric ton (mt) at $260 for October/November shipment. At the same time, brokers report strong demand from Southeast Asia with 'buyers chasing values higher.' Offers for 40-foot containers to Southeast Asia are up $10/mt on average this week at $346/mt."

The Mississippi River has mostly recovered from Hurricane Ida, but low water in parts of the river has created shoaling south of St. Louis. Recent rains have allowed barges to return to normal drafts, but more rain is needed to keep the levels from falling again. The Mississippi River at Memphis is expected to fall back below the low water stage and St. Louis is expected to fall below zero gauge by early October unless more rain comes.

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 9/23/2021 9/16/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $210 $210 $0
Wet $105 $105 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $205 $205 $0
Wet $102 $102 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $185 $185 $0
Indiana Dry $180 $185 -$5
Iowa Dry $185 $190 -$5
Michigan Dry $185 $190 -$5
Minnesota Dry $185 $190 -$5
North Dakota Dry $190 $190 $0
New York Dry $195 $220 -$25
South Dakota Dry $190 $190 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $195 $195 $0
Iowa Dry $200 $205 -$5
Michigan Dry $195 $200 -$5
Minnesota Dry $200 $205 -$5
Missouri Dry $210 $215 -$5
Ohio Dry $190 $190 $0
South Dakota Dry $207 $210 -$3
Nebraska Dry $205 $205 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $205 $195 $10
Wet $80 $80 $0
Illinois Dry $195 $195 $0
Nebraska Dry $205 $195 $10
Wet $80 $80 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $195 $195 $0
Indiana Dry $190 $195 -$5
Iowa Dry $195 $192 $3
Michigan Dry $195 $195 $0
Minnesota Dry $193 $190 $3
Nebraska Dry $195 $195 $0
New York Dry $210 $210 $0
North Dakota Dry $203 $203 $0
Ohio Dry $195 $190 $5
South Dakota Dry $200 $200 $0
Wisconsin Dry $180 $175 $5
Western Milling, Goshen, California (559-302-1074)
California subject Dry $262 $263 -$1
*Prices listed per ton. $195 $196 -$1
Weekly Average
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 9/23/2021 $5.2925 $189.02
Soybean Meal 9/23/2021 $336.60
DDG Weekly Average Spot Price $195.00
DDG Value Relative to: 9/23 9/16
Corn 103.16% 103.65%
Soybean Meal 57.93% 57.61%
Cost Per Unit of Protein:
DDG $7.22 $7.26
Soybean Meal $7.09 $7.16
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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