DDG Weekly Update
1 Jun 2020
OMAHA (DTN) -- Of the 40 locations DTN contacted that showed offers for domestic distillers dried grains (DDG) for the week ended May 28, posted offers averaged $141 per ton, down $2 versus the prior week.
The cash corn price has improved on average versus one week ago and basis has strengthened, but that has had little effect on current DDG prices. However, with DDG prices moving lower recently and plant production picking up, cattle and hog producers have started to use DDG again in rations.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended May 28 was 120.55%. The value of DDG relative to soybean meal was 49.59%. The cost per unit of protein for DDG was $5.22, compared to the cost per unit of protein for soybean meal at $5.99.
Wednesday's Energy Information Administration ethanol report showed for the week ended May 22 that ethanol inventory was drawn down for the fifth consecutive week falling 400,000 bbl, to a 23.2 million bbl 19-week low, with supply 16.2% below a record high reached on April 17. Plant production outpaced the gain in blending activity for the week, up 61,000 barrels per day (bpd) to a 724,000 bpd eight-week high, the fourth consecutive week with higher output after falling to a more than 10-year low at 537,000 bpd. During the four-week period ended May 22, plant production averaged 38.2% below one 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 | PREVIOUS | CHANGE |
| COMPANY | STATE | | 5/28/2020 | 5/21/2020 | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |
| | Missouri | Dry | $140 | $145 | -$5 |
| | | Wet | $70 | $73 | -$3 |
| | | | | | |
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | | |
| | Missouri | Dry | $140 | $140 | $0 |
| | | Wet | $75 | $75 | $0 |
| | | | | | |
| CHS, Minneapolis, MN (800-769-1066) | | | |
| | Illinois | Dry | $155 | $155 | $0 |
| | Indiana | Dry | $145 | $145 | $0 |
| | Iowa | Dry | $130 | $130 | $0 |
| | Michigan | Dry | $150 | $150 | $0 |
| | Minnesota | Dry | $130 | $130 | $0 |
| | North Dakota | Dry | $130 | $130 | $0 |
| | New York | Dry | $195 | $195 | $0 |
| | South Dakota | Dry | $125 | $125 | $0 |
| | | | | | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |
| | Kansas APRIL | Dry | $130 | $130 | $0 |
| | | | | | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | | |
| | Indiana | Dry | $150 | $155 | -$5 |
| | Iowa | Dry | $142 | $145 | -$3 |
| | Michigan | Dry | $155 | $160 | -$5 |
| | Minnesota | Dry | $144 | $145 | -$1 |
| | Missouri | Dry | $155 | $155 | $0 |
| | Ohio | Dry | $150 | $155 | -$5 |
| | South Dakota | Dry | $150 | $155 | -$5 |
| | | | | | |
| United BioEnergy, Wichita, KS (316-616-3521) | | |
| | Kansas | Dry | $0 | $0 | $0 |
| | | Wet | $0 | $0 | $0 |
| | Illinois MARCH | Dry | $0 | $0 | $0 |
| | Nebraska | Dry | $0 | $0 | $0 |
| | | Wet | $0 | $0 | $0 |
| | | | | | |
| | | | | | |
| U.S. Commodities, Minneapolis, MN (888-293-1640) | | |
| | Illinois | Dry | $145 | $145 | $0 |
| | Indiana | Dry | $150 | $150 | $0 |
| | Iowa | Dry | $130 | $130 | $0 |
| | Michigan | Dry | $145 | $155 | -$10 |
| | Minnesota | Dry | $130 | $130 | $0 |
| | Nebraska | Dry | $115 | $120 | -$5 |
| | New York | Dry | $165 | $170 | -$5 |
| | North Dakota | Dry | $120 | $130 | -$10 |
| | Ohio | Dry | $150 | $150 | $0 |
| | South Dakota | Dry | $110 | $125 | -$15 |
| | Wisconsin | Dry | $140 | $150 | -$10 |
| | | | | | |
| Valero Energy Corp, San Antonio Texas | | |
| | Indiana | Dry | $165 | $165 | $0 |
| | Iowa | Dry | $0 | $0 | $0 |
| | Minnesota | Dry | $0 | $0 | $0 |
| | Nebraska | Dry | $0 | $0 | $0 |
| | Ohio | Dry | $155 | $155 | $0 |
| | South Dakota | Dry | $0 | $0 | $0 |
| | California | Dry | $0 | $0 | $0 |
| Western Milling, Goshen, California (559-302-1074) | | |
| | California | Dry | $205 | $210 | -$5 |
| | | | | | |
| *Prices listed per ton. | | | | |
| | | | | | |
| | Weekly Average | | $141 | $143 | -$2 |
| | | | | | |
| 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 | 5/28/2020 | $3.2750 | $116.96 |
| Soybean Meal | 5/28/2020 | | $284.30 |
| DDG Weekly Average Spot Price | | | $141.00 |
| |
| DDG Value Relative to: | 5/28 | 5/22 |
| Corn | 120.55% | 126.01% |
| Soybean Meal | 49.59% | 50.62% |
| | | | |
| Cost Per Unit of Protein: | | |
| DDG | $5.22 | $5.30 |
| Soybean Meal | $5.99 | $5.95 |
| 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
© (c) Copyright 2020 DTN, LLC. All rights reserved.