OMAHA (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 33 locations reporting for the week ended Sept. 9 was $197 per ton, down $4 from one week ago. Prices moved lower on average this week due in part to slowing exports out of the Gulf, leaving plants the need to find more homes in the domestic market nearby. Given the past nine weeks prior to last week showing a slowdown in plant production, supplies are not becoming burdensome.
Wednesday's Energy Information Administration report showed domestic inventory of ethanol posting a sixth straight weekly draw, falling to a 12-week low though production posted the first increase in over two months. Data showed overall production moved off a six-month low, up 18,000 barrels per day (bpd) or 2% to 923,000 bpd.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Sep. 9 was 111.21%. The value of DDG relative to soybean meal was 58.58%, and the cost per unit of protein for DDG was $7.30, compared to the cost per unit of protein for soybean meal at $7.08.
In its weekly DDGS export price update, the U.S. Grains Council said: "Exporters and merchandisers report spotty offers and indications for September/October shipment from the U.S. Gulf, with ingredient traders offering the only true interest in assessing logistics or booking product. Roughly speaking, Barge CIF NOLA values are up $6 per metric ton (MT) this week while FOB Gulf offers are up $5/MT for October (based on scant indications) but November and December positions are steady/down $3/MT. Indications for 40-foot containers to Southeast Asia are wide-ranging this week, but the general trend seems to be sideways."
USGC added, "Please note that FOB Gulf markets will likely be more volatile than normal as the industry works to recover full capacity in New Orleans area export facilities. There are significant questions about elevator capacity and availability and the DDGS market will have to compete with other grains as the U.S. new-crop harvest approaches. Consequently, both flat prices and spreads versus other markets may see greater than normal volatility."
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 | | 9/9/2021 | 9/2/2021 | |
| Bartlett and Company, Kansas City, MO (816 714 3413) | |
| | Missouri | Dry | $210 | $215 | -$5 |
| | | Wet | $105 | $108 | -$3 |
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| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | | |
| | | Dry | $205 | $215 | -$10 |
| | | Wet | $102 | $108 | -$6 |
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| CHS, Minneapolis, MN (800-769-1066) | | | |
| | Illinois | Dry | $195 | $200 | -$5 |
| | Indiana | Dry | $190 | $195 | -$5 |
| | Iowa | Dry | $190 | $190 | $0 |
| | Michigan | Dry | $190 | $195 | -$5 |
| | Minnesota | Dry | $190 | $190 | $0 |
| | North Dakota | Dry | $190 | $190 | $0 |
| | New York | Dry | $220 | $225 | -$5 |
| | South Dakota | Dry | $190 | $195 | -$5 |
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| POET Nutrition, Sioux Falls, SD (888-327-8799) | | |
| | Indiana | Dry | $195 | $200 | -$5 |
| | Iowa | Dry | $205 | $215 | -$10 |
| | Michigan | Dry | $205 | $200 | $5 |
| | Minnesota | Dry | $205 | $210 | -$5 |
| | Missouri | Dry | $215 | $215 | $0 |
| | Ohio | Dry | $190 | $195 | -$5 |
| | South Dakota | Dry | $216 | $215 | $1 |
| | Nebraska | Dry | $205 | $215 | -$10 |
| United BioEnergy, Wichita, KS (316-616-3521) | | |
| | Kansas | Dry | $195 | $205 | -$10 |
| | | Wet | $80 | $80 | $0 |
| | Illinois | Dry | $195 | $200 | -$5 |
| | Nebraska | Dry | $195 | $205 | -$10 |
| | | Wet | $80 | $80 | $0 |
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| U.S. Commodities, Minneapolis, MN (888-293-1640) | | |
| | Illinois | Dry | $195 | $200 | -$5 |
| | Indiana | Dry | $195 | $200 | -$5 |
| | Iowa | Dry | $192 | $195 | -$3 |
| | Michigan | Dry | $195 | $200 | -$5 |
| | Minnesota | Dry | $190 | $195 | -$5 |
| | Nebraska | Dry | $195 | $197 | -$2 |
| | New York | Dry | $210 | $210 | $0 |
| | North Dakota | Dry | $203 | $207 | -$4 |
| | Ohio | Dry | $190 | $195 | -$5 |
| | South Dakota | Dry | $200 | $200 | $0 |
| | Wisconsin | Dry | $175 | $190 | -$15 |
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| Western Milling, Goshen, California (559-302-1074) | | |
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| | California subject | Dry | $263 | $263 | $0 |
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| *Prices listed per ton. | | $197 | $201 | -$4 |
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| | Weekly Average | | | | |
| | | | | | |
| 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 | 9/9/2021 | $4.9600 | $177.14 |
| Soybean Meal | 9/9/2021 | | $336.30 |
| DDG Weekly Average Spot Price | | | $197.00 |
| |
| DDG Value Relative to: | 9/9 | 9/2 |
| Corn | 111.21% | 109.02% |
| Soybean Meal | 58.58% | 59.48% |
| | | | |
| Cost Per Unit of Protein: | | |
| DDG | $7.30 | $7.44 |
| Soybean Meal | $7.08 | $7.11 |
| 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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