OMAHA (DTN) -- The average price for domestic distillers dried grains (DDG) from the 40 locations DTN contacted with spot offers for the week ended Nov. 19 was $195 per ton, up $8 on average from the prior week.
DDG prices continue to push higher as supplies in some areas are tight. One merchandiser told me he was nearly sold out in one plant for the rest of November. Slower ethanol plant production time and strong demand for protein are keeping the market volatile and, in turn, causing the surge in prices for domestic DDG and export DDGS.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 19 was 129.23%, well above the five-year average of 109%. The value of DDG relative to soybean meal was 49.53% and above the three-year average of 42%. The cost per unit of protein for DDG was $7.22, compared to the cost per unit of protein for soybean meal at $8.29.
In its weekly export DDGS price report, the U.S. Grains Council wrote, "DDGS brokers and merchandisers report that barge demand is rising quickly and supporting Q1 values. Domestic demand is also increasing and DDGS producers, facing higher costs shipping to river markets, are selling into domestic markets aggressively. Container demand is reportedly also strengthening with strong trade this week, and expectations are that this trend will continue into 2021. Barge CIF NOLA offers are up $5/metric ton (mt) for spot shipment and up $10 to $11/mt for Q1 2021 this week. FOB Gulf offers are up $4 to $8/mt for December-February shipment. Rail rates are mixed with prices for Kansas City or Elwood, Illinois, railyards up $3 to $6/mt this week while rail-delivered DDGS to Laredo, Texas, or California are down $6 to $8/mt. Offers for 40-foot containers to Southeast Asia are up $7/mt, averaging $310."
The Energy Information Administration reported Wednesday that domestic ethanol inventories rose to an 11-week high for the week ended Nov. 13 as demand dropped to the lowest level in five months. Ethanol plant production dropped for the first time in four weeks, down 15,000 barrels per day (bpd) or 1.5% to 962,000 bpd in the week, 7% lower than the corresponding week in 2019. Four-week average output at 960,000 bpd slid 60,000 bpd against a year ago.
NOTE: All prices listed below can change at any time and are subject to confirmation from seller.
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | CURRENT | CHANGE |
| COMPANY | STATE | | 11/12/2020 | 11/12/2020 | |
| Bartlett and Company, Kansas City, MO (816 714 3413) | |
| | Missouri | Dry | $215 | $210 | $5 |
| | | Wet | $108 | $105 | $3 |
| | | | | | |
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | | |
| | Missouri | Dry | $225 | $210 | $15 |
| | Subject | Wet | $110 | $102 | $8 |
| | | | | | |
| CHS, Minneapolis, MN (800-769-1066) | | | |
| | Illinois | Dry | $210 | $200 | $10 |
| | Indiana | Dry | $195 | $190 | $5 |
| | Iowa | Dry | $195 | $190 | $5 |
| | Michigan | Dry | $190 | $190 | $0 |
| | Minnesota | Dry | $195 | $185 | $10 |
| | North Dakota | Dry | $190 | $180 | $10 |
| | New York | Dry | $220 | $205 | $15 |
| | South Dakota | Dry | $190 | $180 | $10 |
| | | | | | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |
| | Kansas | Dry | $200 | $195 | $5 |
| | | | | | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | | |
| | Indiana | Dry | $200 | $200 | $0 |
| | Iowa | Dry | $200 | $195 | $5 |
| | Michigan | Dry | $200 | $190 | $10 |
| | Minnesota | Dry | $198 | $190 | $8 |
| | Missouri | Dry | $210 | $205 | $5 |
| | Ohio | Dry | $200 | $195 | $5 |
| | South Dakota | Dry | $198 | $190 | $8 |
| | | | | | |
| United BioEnergy, Wichita, KS (316-616-3521) | | |
| | Kansas | Dry | $177 | $177 | $0 |
| | | Wet | $75 | $75 | $0 |
| | Illinois | Dry | $212 | $200 | $12 |
| | Nebraska | Dry | $177 | $177 | $0 |
| | | Wet | $75 | $75 | $0 |
| | | | | | |
| | | | | | |
| U.S. Commodities, Minneapolis, MN (888-293-1640) | | |
| | Illinois | Dry | $195 | $190 | $5 |
| | Indiana | Dry | $190 | $185 | $5 |
| | Iowa | Dry | $180 | $175 | $5 |
| | Michigan | Dry | $190 | $185 | $5 |
| | Minnesota | Dry | $180 | $175 | $5 |
| | Nebraska | Dry | $185 | $180 | $5 |
| | New York | Dry | $215 | $210 | $5 |
| | North Dakota | Dry | $180 | $175 | $5 |
| | Ohio | Dry | $190 | $185 | $5 |
| | South Dakota | Dry | $170 | $165 | $5 |
| | Wisconsin | Dry | $175 | $170 | $5 |
| | | | | | |
| Valero Energy Corp, San Antonio Texas | | | |
| Subject | Indiana | Dry | $215 | $183 | $32 |
| | Iowa | Dry | $0 | $0 | $0 |
| | Minnesota | Dry | $0 | $0 | $0 |
| | Nebraska | Dry | $0 | $0 | $0 |
| Subject | Ohio | Dry | $205 | $172 | $33 |
| | South Dakota | Dry | $0 | $0 | $0 |
| | California | Dry | $0 | $0 | $0 |
| Western Milling, Goshen, California (559-302-1074) | | |
| | California | Dry | $265 | $265 | $0 |
| | | | | | |
| *Prices listed per ton. | | | | |
| | | | | | |
| | Weekly Average | | $195 | $187 | $8 |
| | | | | | |
| 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 | 11/19/2020 | $4.2250 | $150.89 |
| Soybean Meal | 11/19/2020 | | $393.70 |
| DDG Weekly Average Spot Price | | | $195.00 |
| |
| DDG Value Relative to: | 11/19 | 11/12 |
| Corn | 129.23% | 128.25% |
| Soybean Meal | 49.53% | 48.18% |
| | | | |
| Cost Per Unit of Protein: | | |
| DDG | $7.22 | $6.93 |
| Soybean Meal | $8.29 | $8.17 |
| 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 [email protected]
Follow her on Twitter @MaryCKenn
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