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DDG Weekly Update 01/14 11:00
DTN Weekly Average DDG Price Higher on Strong Demand
DTN's weekly average spot price for domestic distillers dried grains was up
$3 on average versus one week ago.
Mary Kennedy
DTN Basis Analyst
OMAHA (DTN) -- The DTN average price for domestic distillers dried grains
(DDG) from 34 locations reporting for the week ended Jan. 13 was $210 per ton,
up $3 per ton on average versus one week ago.
The lower corn board has not really affected DDG prices, as higher soymeal
prices continue to support the market. With demand from feeders still strong
and less supply due to slower runtimes, DDG prices remain firm.
Wednesday's Energy Information Administration (EIA) report showed overall
U.S. ethanol plant production dropped 42,000 barrels per day (bpd) to 1.006
million bpd in the week reviewed and averaged 1.041 million bpd over the most
recent four weeks.
Based on the average of prices collected by DTN, the value of DDG relative
to corn for the week ended Jan. 13 was 1.0085%. The value of DDG relative to
soybean meal was 49.56%, and the cost per unit of protein for DDG was $7.78,
compared to the cost per unit of protein for soybean meal at $8.92.
In their weekly DDGS update, the U.S. Grains Council said, "On the export
market, DDGS values are holding steady with two weeks of slower ethanol run
rates and DDGS production helping tighten supplies. Barge CIF NOLA and FOB NOLA
prices are each down $1-$2 per metric ton (mt) for Q1 shipment, while April
barges are up $5/mt. U.S. rail rates are steady/up $1, on average, but offers
for product delivered to KC rail yards are up $5-6/mt. Prices for DDGS
containers to Southeast Asia are up modestly this week, rising $2/mt for
February positions and up $1/mt for March and April. Brokers report a gradual
increase in buying interest, but that markets remain quiet overall. Prices for
40-foot containers into Southeast Asia averaged $362/mt so far this week."
The Chinese Ministry of Commerce (MOFCOM) recently said it will maintain
anti-dumping and anti-subsidy tariffs on imports of DDGS from the U.S.,
originally imposed in 2016, during a review of the current tariffs. Reuters
noted that according to MOFCOM, the review should be finalized before Jan. 12,
2023. U.S. DDGS currently exported to China have been going to duty-free zones,
according to USGC.
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 1/13/2022 1/6/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $225 $225 $0
Wet $120 $120 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $235 $235 $0
Wet $130 $130 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $200 $200 $0
Indiana Dry $200 $195 $5
Iowa Dry $200 $192 $8
Michigan Dry $185 $185 $0
Minnesota Dry $190 $183 $7
New York Dry $210 $195 $15
South Dakota Dry $205 $205 $0
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $220 $220 $0
Wet $73 $73 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $205 $195 $10
Iowa Dry $230 $230 $0
Michigan Dry $205 $195 $10
Minnesota Dry $230 $230 $0
Missouri Dry $235 $230 $5
Ohio Dry $205 $195 $10
South Dakota Dry $235 $230 $5
Nebraska Dry $240 $230 $10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $225 $225 $0
Wet $85 $85 $0
Illinois Dry $205 $205 $0
Nebraska Dry $225 $225 $0
Wet $85 $85 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $200 $200 $0
Indiana Dry $195 $195 $0
Iowa Dry $195 $190 $5
Michigan Dry $190 $190 $0
Minnesota Dry $185 $185 $0
Nebraska Dry $225 $220 $5
New York Dry $210 $210 $0
North Dakota Dry $225 $225 $0
Ohio Dry $190 $190 $0
South Dakota Dry $205 $200 $5
Wisconsin Dry $187 $187 $0
Western Kansas Dry $265 $255 $10
Wet $100 $100 0
Central Kansas Dry $240 $255 -15
Wet $85 $90 -5
Western Milling, Goshen, California (559-302-1074)
California Dry $297 $300 -$3
**Weekly Average: $210 $207 $3
(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 1/13/2022 $5.8750 $209.82
Soybean Meal 1/13/2022 $423.70
DDG Weekly Average Spot Price $210.00
DDG Value Relative to: 1/13 1/6
Corn 1.01% 96.00%
Soybean Meal 49.56% 49.24%
Cost Per Unit of Protein:
DDG $7.78 $7.67
Soybean Meal $8.92 $8.85
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 2022 DTN, LLC. All rights reserved.
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