OMAHA (DTN) -- The average price for domestic distillers dried grains (DDG) from the 40 locations DTN contacted with spot offers for the week ended Dec. 3 was $202 per ton, up $7 on average versus two weeks ago.
DDG prices continue to push higher and are currently up approximately $15 versus the average for the month of November. Slower ethanol plant production time and strong domestic and international demand for protein are causing the higher prices for domestic DDG and export DDGS. Merchandisers report that some Midwest plants have slowed down because they are full right now.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Dec. 3 was 133.87%, well above the 5-year average of 109%. The value of DDG relative to soybean meal was 51.43% and above the 3-year average of 42%. The cost per unit of protein for DDG was $7.48, compared to the cost per unit of protein for soybean meal at $8.27.
In its weekly export DDGS price report, the U.S. Grains Council wrote, "After quiet trading last week, the DDGS market is mixed as buyers and sellers work within a wide bid/ask spread to conduct business. Generally, rail-delivered prices are $2 to $3 per metric ton (mt) firmer this week, but offers for DDGS delivered to Kansas City, Missouri, or Elwood, Illinois, are down slightly. Barge CIF NOLA offers are steady for spot positions but down $3 to $4/mt for the first quarter of 2021 positions. December FOB NOLA offers are up $2/mt while January and February offers are down $1/mt at $284 and $283, respectively. Indications for 40-foot containers to Southeast Asia are widely mixed this week but are averaging $5 to $7/mt higher at $316 to $318 for December/January positions."
The U.S. Census Bureau said Friday that U.S. exports of DDGS totaled 951,500 mt in October, down from 1,158,164 mt in September, but up 23% from a year ago. Mexico was the top destination in October, taking 19% of U.S. exports and was followed by Vietnam and South Korea. For the first 10 months of 2020, U.S. exports of DDGS were up 1% from a year ago.
The Energy Information Administration report Wednesday showed total domestic ethanol inventories climbed to a 24-week high in the final week of November as implied demand fell below 800,000 barrels per day (bpd) for the first time since June 12. Ethanol plant production dropped 1.6% in the week ended Nov. 27, 8.1% lower than the corresponding week in 2019.
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 | | 12/3/2020 | 11/19/2020 | |
| Bartlett and Company, Kansas City, MO (816 714 3413) | |
| | Missouri | Dry | $225 | $215 | $10 |
| | | Wet | $113 | $108 | $5 |
| | | | | | |
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | | |
| | Missouri | Dry | $235 | $225 | $10 |
| | | Wet | $115 | $110 | $5 |
| | | | | | |
| CHS, Minneapolis, MN (800-769-1066) | | | |
| | Illinois | Dry | $215 | $210 | $5 |
| | Indiana | Dry | $200 | $195 | $5 |
| | Iowa | Dry | $205 | $195 | $10 |
| | Michigan | Dry | $200 | $190 | $10 |
| | Minnesota | Dry | $200 | $195 | $5 |
| | North Dakota | Dry | $195 | $190 | $5 |
| | New York | Dry | $225 | $220 | $5 |
| | South Dakota | Dry | $200 | $190 | $10 |
| | | | | | |
| E Energy Adams, Adams, Nebraska | | | |
| | Adams | Dry | $230 | $225 | $5 |
| | | | | | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | | |
| | Indiana | Dry | $205 | $200 | $5 |
| | Iowa | Dry | $205 | $200 | $5 |
| | Michigan | Dry | $205 | $200 | $5 |
| | Minnesota | Dry | $200 | $198 | $2 |
| | Missouri | Dry | $220 | $210 | $10 |
| | Ohio | Dry | $205 | $200 | $5 |
| | South Dakota | Dry | $205 | $198 | $7 |
| | | | | | |
| United BioEnergy, Wichita, KS (316-616-3521) | | |
| | Kansas | Dry | $184 | $177 | $7 |
| | | Wet | $75 | $75 | $0 |
| | Illinois | Dry | $212 | $212 | $0 |
| | Nebraska | Dry | $177 | $177 | $0 |
| | | Wet | $75 | $75 | $0 |
| | | | | | |
| | | | | | |
| U.S. Commodities, Minneapolis, MN (888-293-1640) | | |
| | Illinois | Dry | $205 | $195 | $10 |
| | Indiana | Dry | $200 | $190 | $10 |
| | Iowa | Dry | $190 | $180 | $10 |
| | Michigan | Dry | $200 | $190 | $10 |
| | Minnesota | Dry | $190 | $180 | $10 |
| | Nebraska | Dry | $195 | $185 | $10 |
| | New York | Dry | $225 | $215 | $10 |
| | North Dakota | Dry | $190 | $180 | $10 |
| | Ohio | Dry | $200 | $190 | $10 |
| | South Dakota | Dry | $180 | $170 | $10 |
| | Wisconsin | Dry | $185 | $175 | $10 |
| | | | | | |
| Valero Energy Corp, San Antonio, Texas | | |
| | Indiana | Dry | $208 | $215 | -$7 |
| | Iowa | Dry | $0 | $0 | $0 |
| | Minnesota | Dry | $0 | $0 | $0 |
| | Nebraska | Dry | $0 | $0 | $0 |
| | Ohio | Dry | $197 | $205 | -$8 |
| | South Dakota | Dry | $0 | $0 | $0 |
| | California | Dry | $0 | $0 | $0 |
| Western Milling, Goshen, California (559-302-1074) | | |
| | California | Dry | $275 | $265 | $10 |
| | | | | | |
| *Prices listed per ton. | | | | |
| | | | | | |
| | Weekly Average | | $202 | $195 | $7 |
| | | | | | |
| 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 | 12/3/2020 | $4.2250 | $150.89 |
| Soybean Meal | 12/3/2020 | | $392.80 |
| DDG Weekly Average Spot Price | | | $202.00 |
| |
| DDG Value Relative to: | 12/3 | 11/19 |
| Corn | 133.87% | 128.25% |
| Soybean Meal | 51.43% | 48.18% |
| | | | |
| Cost Per Unit of Protein: | | |
| DDG | $7.48 | $6.93 |
| Soybean Meal | $8.27 | $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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