Extreme Cold Drives DTN Weekly Average DDG Price Higher


The Energy Information Administration reported at midweek that overall ethanol plant production for the week ended Feb. 12 slid 26,000 barrels per day (bpd) in the week profiled to 911,000 bpd, the lowest level since the final week of September 2020 and 12.4% lower than the corresponding week in 2020. Four-week average output dropped 116,000 bpd against year ago to 929,000 bpd. Expect another drop in production to be reported for this week as plants struggle through the cold weather and extremely high natural gas prices.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Feb. 18 was 122.13% versus the five-year average of 109%. The value of DDG relative to soybean meal was 56.35% versus the three-year average of 42%. The cost per unit of protein for DDG was $8.89, compared to the cost per unit of protein for soybean meal at $8.97.

In their weekly export DDGS update, the U.S. Grains Council noted merchandisers report domestic and international customers are waiting to see how natural gas curtailments will impact ethanol production and DDGS supplies before booking. “Trade is reported as “coming in waves” this week, with flurries of activity followed by quiet markets. The barge market has reportedly been volatile this week with early-week panic buying giving way to softer trade Wednesday afternoon and Thursday. Reasons for the lower late-week trade include more favorable weather forecasts and greater barge availability. As of Thursday afternoon, Barge CIF NOLA values are up $2 metric ton (mt) for March but down $4 to $5 mt for April/May. FOB NOLA offers are up $13 mt for March at $337 with April/May up $1 to $6 mt,” said USGC.

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 2/18/2021 2/11/2021
Bartlett and Company, Kansas City, MO (816 714 3413)
Missouri Dry $260 $250 $10
Wet $133 $125 $8
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Out for a few weeks Dry $0 $0 $0
Wet $0 $0 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $245 $240 $5
Indiana Dry $235 $235 $0
Iowa Dry $235 $230 $5
Michigan Dry $235 $235 $0
Minnesota Dry $225 $225 $0
North Dakota Dry $225 $225 $0
New York Dry $300 $295 $5
South Dakota Dry $225 $220 $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $245 $240 $5
Iowa Dry $250 $225 $25
Michigan Dry $245 $240 $5
Minnesota Dry $240 $220 $20
Missouri Dry $270 $260 $10
Ohio Dry $240 $235 $5
South Dakota Dry $260 $235 $25
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $243 $243 $0
Wet $75 $75 $0
Illinois Dry $244 $244 $0
Nebraska Dry $243 $243 $0
Wet $75 $75 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $240 $240 $0
Indiana Dry $240 $240 $0
Iowa Dry $230 $225 $5
Michigan Dry $235 $230 $5
Minnesota Dry $225 $220 $5
Nebraska Dry $235 $235 $0
New York Dry $285 $285 $0
North Dakota Dry $235 $235 $0
Ohio Dry $235 $235 $0
South Dakota Dry $230 $230 $0
Wisconsin Dry $230 $230 $0
Valero Energy Corp, San Antonio, Texas
Indiana Dry $240 $240 $0
Iowa Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
Ohio Dry $245 $245 $0
South Dakota Dry $0 $0 $0
California Dry $0 $0 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $325 $296 $29
*Prices listed per ton.
Weekly Average $240 $235 $5
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 2/18/2021 $5.5025 $196.52
Soybean Meal 2/18/2021 $425.90
DDG Weekly Average Spot Price $240.00
DDG Value Relative to: 2/18 2/11
Corn 122.13% 121.62%
Soybean Meal 56.35% 54.79%
Cost Per Unit of Protein:
DDG $8.89 $8.70
Soybean Meal $8.97 $9.03
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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