Continued Demand Keeps DTN Average DDG Price Higher

Source: By Mary Kennedy, DTN Staff Reporter • Posted: Monday, January 24, 2022

Wednesday’s Energy Information Administration (EIA) report showed that, while holding above the 1 million barrels per day (bpd) level for a 15th straight week, the second week of January marked the first uptick in overall ethanol output in three weeks, noted DTN Refined Fuels. U.S. plant production of ethanol rose 47,000 bpd to 1.053 million bpd last week, 11.4% more than the same week in 2021. Ethanol plant production in PADD 2 also rose 47,000 bpd through Jan. 14 to 994,000 bpd.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 20 was 97.15%. The value of DDG relative to soybean meal was 52.89%, and the cost per unit of protein for DDG was $7.85, compared to the cost per unit of protein for soybean meal at $8.44.

In their weekly DDGS update, the U.S. Grains Council said, “Cold weather and the associated logistical difficulties are impacting barge markets and pushing freight rates higher, which, in turn, is supporting export destined DDGS prices. Gains in barge freight rates have pushed offers for DDGS. Barge CIF NOLA up $7 metric ton (mt) for February while March and April offers are up $5 mt. Similarly, FOB NOLA offers are up $11 mt to $298 mt for February, while March positions are up $8 mt at $287. Prices for DDGS containers to Southeast Asia are mostly higher this week, rising $3 to $8 mt for February through April positions. Like last week, brokers report steady increases in export interest but that both buyers and sellers remain patient. Prices for 40-foot containers into Southeast Asia are averaging $365 mt so far this week.”

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 1/21/2022 1/13/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $240 $225 $15
Wet $125 $120 $5
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 $205 $200 $5
Indiana Dry $200 $200 $0
Iowa Dry $205 $200 $5
Michigan Dry $185 $185 $0
Minnesota Dry $195 $190 $5
New York Dry $210 $210 $0
South Dakota Dry $208 $205 $3
MGP Ingredients, Atchison, KS (800-255-0302)
Dry $220 $220 $0
Wet $75 $73 $2
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $205 $205 $0
Iowa Dry $230 $230 $0
Michigan Dry $205 $205 $0
Minnesota Dry $230 $230 $0
Missouri Dry $235 $235 $0
Ohio Dry $205 $205 $0
South Dakota Dry $235 $235 $0
Nebraska Dry $240 $240 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $225 $225 $0
Wet $85 $85 $0
Illinois Dry $200 $205 -$5
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 $200 $195 $5
Michigan Dry $195 $190 $5
Minnesota Dry $185 $185 $0
Nebraska Dry $225 $225 $0
New York Dry $210 $210 $0
North Dakota Dry $225 $225 $0
Ohio Dry $195 $190 $5
South Dakota Dry $205 $205 $0
Wisconsin Dry $195 $187 $8
Western Kansas Dry $270 $265 $5
Wet $100 $100 0
Central Kansas Dry $240 $240 0
Wet $85 $85 0
Western Milling, Goshen, California (559-302-1074)
California Dry $293 $297 -$4
**Weekly Average: $212 $210 $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 1/20/2022 $6.1100 $218.21
Soybean Meal 1/20/2022 $400.80
DDG Weekly Average Spot Price $212.00
DDG Value Relative to: 1/20 1/13
Corn 97.15% 100.01%
Soybean Meal 52.89% 49.56%
Cost Per Unit of Protein:
DDG $7.85 $7.78
Soybean Meal $8.44 $8.92
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

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