Market Matters Blog

DTN Weekly DDG Price 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 for the week ended Nov. 17 was $2 lower on average versus 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 Nov. 17 was $234 per ton, down $2 on average versus one week ago. The drop in cash corn prices again added to the pressure on DDG prices over the week, along with the availability of more product to sell after production increased the six weeks prior to last week's drop.

The Energy Information Administration (EIA) Wednesday showed plant production dropped for the first time in seven weeks and demand ticked higher. EIA reported ethanol production in the U.S. tumbled 40,000 barrels per day (bpd) or 3.8% to a five-week low 1.011 million bpd last week, 4.6% below the same week a year ago. Four-week average production at 1.034 million bpd was 44,000 bpd lower than the corresponding four weeks in 2021. Midwest ethanol production was also lower for the first time in seven weeks, falling 38,000 bpd or 3.8% to 954,000 bpd, a five-week low.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 17 was 0.98%. The value of DDG relative to soybean meal was 57.68%, and the cost per unit of protein for DDG was $8.67 compared to the cost per unit of protein for soybean meal at $8.54.

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In its weekly DDGS export update, the U.S. Grains Council said: "Some increase in Mississippi water flows helped lower barge CIF NOLA rates. Plus, there is the benefit of slightly lower U.S. rail rates. Quotes for DDGS delivered Japan were also slightly lower but there were increases in the offers made going into Southeast Asia."

There will be no price update the week of Thanksgiving.

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 11/18/2022 11/10/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $265 $273 -$8
Wet $155 $155 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $250 $250 $0
Wet $135 $135 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $225 $225 $0
Indiana Dry $205 $205 $0
Iowa Dry $220 $225 -$5
Michigan Dry $218 $220 -$2
Minnesota Dry $210 $215 -$5
New York Dry $255 $250 $5
South Dakota Dry $240 $250 -$10
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $275 $255 $20
Wet $95 $95 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $230 $230 $0
Iowa Dry $240 $240 $0
Michigan Dry $225 $225 $0
Minnesota Dry $230 $230 $0
Missouri Dry $250 $250 $0
Ohio Dry $225 $225 $0
South Dakota Dry $250 $250 $0
Nebraska Dry $265 $265 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $290 $290 $0
Call for Available Wet* $0 $0 $0
Illinois Dry $230 $230 $0
Nebraska Dry $290 $290 $0
Call for Available Wet* $0 $0 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $215 $220 -$5
Indiana Dry $200 $210 -$10
Iowa Dry $205 $215 -$10
Michigan Dry $215 $220 -$5
Minnesota Dry $210 $215 -$5
Nebraska Dry $250 $255 -$5
New York Dry $250 $250 $0
North Dakota Dry $250 $255 -$5
Ohio Dry $220 $225 -$5
South Dakota Dry $220 $230 -$10
Wisconsin Dry $205 $210 -$5
Fox River Valley Ethanol, Oshkosh WI 715-709-0269
Dry $220 $220 $0
Western Kansas Dry $265 $245 $20
Wet $110 $110 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $347 $347 $0
**Weekly Average: $234 $236 -$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 11/17/2022 $6.6750 $238.3929
Soybean Meal 11/17/2022 $405.70
DDG Weekly Average Spot Price $234.00
DDG Value Relative to: 11/17/2022 11/10/22
Corn 0.98% 1.02%
Soybean Meal 57.68% 58.65%
Cost Per Unit of Protein:
DDG $8.67 $8.78
Soybean Meal $8.54 $8.51
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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