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Market Matters Blog           09/23 12:49

   DTN Weekly DDG Average Price Higher as Supplies Tighten

   DTN's weekly average spot price for domestic distillers dried grains was $4 
higher versus one week ago.

Mary Kennedy
DTN Basis Analyst

   MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried 
grains (DDG) from 34 locations reporting for the week ended Sept. 22 was $258 
per ton, up $4 on average versus one week ago. DDG prices are higher again on 
average as plant production fell again, making supplies tight, especially with 
buyers interested in the spot market right now.

   The Energy Information Administration (EIA) said Wednesday domestic ethanol 
production slid to a near 19-month low through the week-ended Sept. 16. Total 
ethanol production in the United States dropped a second week, sinking 62,000 
barrels per day (bpd) to 901,000 bpd through Sept. 16, the lowest level since 
end of February 2021 while down 2.7% against this time last year. Midwest 
ethanol production was also sharply lower for a second week, sinking 52,000 bpd 
to 850,000 bpd, the lowest output rate since the week ended Feb. 26, 2021.

   Based on the average of prices collected by DTN, the value of DDG relative 
to corn for the week ended Sep. 5 was 1.05%. The value of DDG relative to 
soybean meal was 57.86%, and the cost per unit of protein for DDG was $9.56, 
compared to the cost per unit of protein for soybean meal at $9.39.

   In its weekly DDGS export update, the U.S. Grains Council said: "On the 
export market, Barge CIF NOLA offers are $12-$16 per metric ton (mt) higher 
this week as logistics during the new crop harvest season are becoming tight. 
FOB NOLA offers are up $11-$14/mt, and U.S. rail delivered DDGS are generally 
$5-$10/mt higher. The ocean freight market's volatility this week has left the 
containerized DDGS market essentially flat, but offers for product into the 
Indonesia and Malaysia are down $5-$7/mt. The average offer for containerized 
DDGS to Southeast Asia is down $6/mt this week at $406 for October shipment."

   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                             9/22/2022     9/15/2022
Bartlett and Company, Kansas City, MO (816 714 3413)
          Missouri                   Dry    $285          $275         $10
                                     Wet    $165          $160         $5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
                                     Dry    $290          $285         $5
                                     Wet    $150          $150         $0
CHS, Minneapolis, MN (800-769-1066)
          Illinois                   Dry    $240          $235         $5
          Indiana                    Dry    $225          $225         $0
          Iowa                       Dry    $260          $245         $15
          Michigan                   Dry    $220          $210         $10
          Minnesota                  Dry    $245          $245         $0
          New York                   Dry    $240          $205         $35
          South Dakota               Dry    $265          $265         $0
MGP Ingredients, Atchison, KS (800-255-0302)
                                     Dry    $315          $285         $30
                                     Wet    $105          $101         $4
POET Nutrition, Sioux Falls, SD (888-327-8799)
          Indiana                    Dry    $250          $240         $10
          Iowa                       Dry    $300          $290         $10
          Michigan                   Dry    $225          $220         $5
          Minnesota                  Dry    $300          $275         $25
          Missouri                   Dry    $285          $285         $0
          Ohio                       Dry    $245          $240         $5
          South Dakota               Dry    $290          $275         $15
          Nebraska SUBJECT           Dry    $320          $320         $0
United BioEnergy, Wichita, KS (316-616-3521)
          Kansas                     Dry    $285          $280         $5
          Call for Available         Wet*   $0            $0           $0
          Illinois                   Dry    $240          $235         $5
          Nebraska                   Dry    $285          $280         $5
          Call for Available         Wet*   $0            $0           $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
          Illinois                   Dry    $235          $235         $0
          Indiana                    Dry    $230          $230         $0
          Iowa                       Dry    $240          $250         -$10
          Michigan                   Dry    $215          $220         -$5
          Minnesota                  Dry    $240          $240         $0
          Nebraska                   Dry    $295          $295         $0
          New York                   Dry    $260          $265         -$5
          North Dakota               Dry    $240          $245         -$5
          Ohio                       Dry    $225          $230         -$5
          South Dakota               Dry    $240          $240         $0
          Wisconsin                  Dry    $215          $220         -$5
          Western Kansas             Dry    $290          $290         $0
                                     Wet    $105          $105         $0
Western Milling, Goshen, California (559-302-1074)
          California                 Dry    $352          $345         $7
**Weekly Average:                           $258          $254         $4
(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                                    9/22/2022     $6.8825      $245.8036
Soybean Meal                            9/22/2022                  $445.90
DDG Weekly Average Spot Price                                      $258.00
DDG Value Relative to:                                9/22/2022    9/18/2002
Corn                                                  1.05%        1.05%
Soybean Meal                                          57.86%       58.46%
Cost Per Unit of Protein:
DDG                                                   $9.56        $9.41
Soybean Meal                                          $9.39        $9.15
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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