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DDG Weekly Update 02/03 16:25
DTN Weekly DDG Price Slightly Lower on Average
DTN's weekly average spot price for domestic distillers dried grains is $2
lower than one week ago.
Mary Kennedy
DTN Basis Analyst
MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried
grains (DDG) from 35 locations reporting for the week ended Feb. 2 was $271 per
ton, down $2 on average from one week ago. Prices were mixed again this week
but lower on average. Overall, the market feels better than it did last week
and much of that comes from the support due to the continued rise in soymeal
prices. DDG remains a good value for feeders in comparison to soymeal and other
feed products.
The Energy Information Administration (EIA) at midweek showed a fourth
consecutive increase in domestic ethanol production, up 16,000 barrels per day
(bpd) or 1.6% to 1.028 million bpd, 1.2% below a year ago. Output in the
Midwest PADD 2 rose 19,000 bpd or 2% to 982,000 bpd, a seven-week high while
0.1% more than the same week in 2022.
Based on the average of prices collected by DTN, the value of DDG relative
to corn for the week ended Feb. 2 was 1.12%. The value of DDG relative to
soybean meal was 55.10%, and the cost per unit of protein for DDG was $10.04
compared to the cost per unit of protein for soybean meal at $10.35.
In its weekly DDGS export update, the U.S. Grains Council said: "Brokers
have also cited a "thin pipeline" as responsible for increases in DDGS values
on the export market. Barge CIF NOLA offers are up $7-10/MT this week while FOB
NOLA offers are up $9 for spot positions and up $1-7/MT for March/April. Offers
for 40-foot containers to Southeast Asia are up $20/MT for February/March
positions at $414 this week."
USGC added, "The USDA's monthly Grain Crushings report helped explain some
of the recent pricing strength in DDGS markets, as production fell sharply in
December 2022. The industry produced 1.523 MMT (1.68 million short tons) in
December, which was down 5.6 percent from November and down 19 percent
year-over-year. Part of the production decline is explained by bitterly cold
temperatures and icy conditions that hampered operations towards the end of the
month. The weather also contributed to an 11.4-percent year-over-year decline
in corn gluten feed production as well as a 6.9 percent decrease in corn gluten
meal output."
NOTE: All prices listed below can change at any time and are subject to
confirmation from the seller.
ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 1/26/2023 1/19/2023
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $310 $310 $0
Wet $170 $170 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Dry $300 $310 -$10
Wet $165 $175 -$10
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $245 $245 $0
Indiana Dry $240 $240 $0
Iowa Dry $262 $268 -$6
Michigan Dry $235 $230 $5
Minnesota Dry $265 $265 $0
New York Dry $270 $265 $5
South Dakota Dry $285 $315 -$30
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $285 $275 $10
Wet $100 $95 $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $270 $275 -$5
Iowa Dry $295 $297 -$2
Michigan Dry $265 $265 $0
Minnesota Dry $290 $290 $0
Missouri Dry $290 $295 -$5
Ohio Dry $270 $275 -$5
South Dakota Dry $305 $305 $0
Nebraska Dry $300 $305 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $295 $300 -$5
Call for Available Wet* $125 $125 $0
Illinois Dry $250 $250 $0
Nebraska Dry $295 $300 -$5
Call for Available Wet* $125 $125 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $245 $245 $0
Indiana Dry $245 $245 $0
Iowa Dry $260 $260 $0
Michigan Dry $250 $250 $0
Minnesota Dry $255 $260 -$5
Nebraska Dry $300 $300 $0
New York Dry $280 $280 $0
North Dakota Dry $265 $270 -$5
Ohio Dry $260 $265 -$5
South Dakota Dry $285 $295 -$10
Wisconsin Dry $235 $230 $5
Fox River Valley Ethanol, Oshkosh WI 715-709-0269
Dry $240 $240 $0
Western Kansas Dry $265 $270 -$5
Wet $110 $110 $0
Western Milling, Goshen, California (559-302-1074)
California Dry
**Weekly Average: $271 $273 -$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 2/2/2023 $6.7525 $241.1607
Soybean Meal 2/2/2023 $491.80
DDG Weekly Average Spot Price 2/2/2023 $271.00
DDG Value Relative to: 2/2 1/26
Corn 1.12% 1.14%
Soybean Meal 55.10% 58.57%
Cost Per Unit of Protein:
DDG $10.04 $10.22
Soybean Meal $10.35 $9.92
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
(c) Copyright 2023 DTN, LLC. All rights reserved.
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