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DDG Weekly Update             12/04 10:18

   DTN Weekly Average DDG Price Jumps Higher

   DTN's weekly average spot price for domestic distillers dried grains moved 
higher this past week.

Mary Kennedy
DTN Basis Analyst

   OMAHA (DTN) -- The average price for domestic distillers dried grains (DDG) 
from the 40 locations DTN contacted with spot offers for the week ended Dec. 3 
was $202 per ton, up $7 on average versus two weeks ago.

   DDG prices continue to push higher and are currently up approximately $15 
versus the average for the month of November. Slower ethanol plant production 
time and strong domestic and international demand for protein are causing the 
higher prices for domestic DDG and export DDGS. Merchandisers report that some 
Midwest plants have slowed down because they are full right now.

   Based on the average of prices collected by DTN, the value of DDG relative 
to corn for the week ended Dec. 3 was 133.87%, well above the 5-year average of 
109%. The value of DDG relative to soybean meal was 51.43% and above the 3-year 
average of 42%. The cost per unit of protein for DDG was $7.48, compared to the 
cost per unit of protein for soybean meal at $8.27.

   In its weekly export DDGS price report, the U.S. Grains Council wrote, 
"After quiet trading last week, the DDGS market is mixed as buyers and sellers 
work within a wide bid/ask spread to conduct business. Generally, 
rail-delivered prices are $2 to $3 per metric ton (mt) firmer this week, but 
offers for DDGS delivered to Kansas City, Missouri, or Elwood, Illinois, are 
down slightly. Barge CIF NOLA offers are steady for spot positions but down $3 
to $4/mt for the first quarter of 2021 positions. December FOB NOLA offers are 
up $2/mt while January and February offers are down $1/mt at $284 and $283, 
respectively. Indications for 40-foot containers to Southeast Asia are widely 
mixed this week but are averaging $5 to $7/mt higher at $316 to $318 for 
December/January positions."

   The U.S. Census Bureau said Friday that U.S. exports of DDGS totaled 951,500 
mt in October, down from 1,158,164 mt in September, but up 23% from a year ago. 
Mexico was the top destination in October, taking 19% of U.S. exports and was 
followed by Vietnam and South Korea. For the first 10 months of 2020, U.S. 
exports of DDGS were up 1% from a year ago.

   The Energy Information Administration report Wednesday showed total domestic 
ethanol inventories climbed to a 24-week high in the final week of November as 
implied demand fell below 800,000 barrels per day (bpd) for the first time 
since June 12. Ethanol plant production dropped 1.6% in the week ended Nov. 27, 
8.1% lower than the corresponding week in 2019.

   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                     12/3/2020     11/19/2020
Bartlett and Company, Kansas City, MO (816 714 3413)
           Missouri            Dry   $225          $215        $10
                               Wet   $113          $108        $5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
           Missouri            Dry   $235          $225        $10
                               Wet   $115          $110        $5
CHS, Minneapolis, MN (800-769-1066)
           Illinois            Dry   $215          $210        $5
           Indiana             Dry   $200          $195        $5
           Iowa                Dry   $205          $195        $10
           Michigan            Dry   $200          $190        $10
           Minnesota           Dry   $200          $195        $5
           North Dakota        Dry   $195          $190        $5
           New York            Dry   $225          $220        $5
           South Dakota        Dry   $200          $190        $10
E Energy Adams, Adams, Nebraska
           Adams               Dry   $230          $225        $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
           Indiana             Dry   $205          $200        $5
           Iowa                Dry   $205          $200        $5
           Michigan            Dry   $205          $200        $5
           Minnesota           Dry   $200          $198        $2
           Missouri            Dry   $220          $210        $10
           Ohio                Dry   $205          $200        $5
           South Dakota        Dry   $205          $198        $7
United BioEnergy, Wichita, KS (316-616-3521)
           Kansas              Dry   $184          $177        $7
                               Wet   $75           $75         $0
           Illinois            Dry   $212          $212        $0
           Nebraska            Dry   $177          $177        $0
                               Wet   $75           $75         $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
           Illinois            Dry   $205          $195        $10
           Indiana             Dry   $200          $190        $10
           Iowa                Dry   $190          $180        $10
           Michigan            Dry   $200          $190        $10
           Minnesota           Dry   $190          $180        $10
           Nebraska            Dry   $195          $185        $10
           New York            Dry   $225          $215        $10
           North Dakota        Dry   $190          $180        $10
           Ohio                Dry   $200          $190        $10
           South Dakota        Dry   $180          $170        $10
           Wisconsin           Dry   $185          $175        $10
Valero Energy Corp, San Antonio, Texas
           Indiana             Dry   $208          $215        -$7
           Iowa                Dry   $0            $0          $0
           Minnesota           Dry   $0            $0          $0
           Nebraska            Dry   $0            $0          $0
           Ohio                Dry   $197          $205        -$8
           South Dakota        Dry   $0            $0          $0
           California          Dry   $0            $0          $0
Western Milling, Goshen, California (559-302-1074)
           California          Dry   $275          $265        $10
*Prices listed per ton.
           Weekly Average            $202          $195        $7
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                             12/3/2020   $4.2250 $150.89
Soybean Meal                     12/3/2020           $392.80
DDG Weekly Average Spot Price                        $202.00
DDG Value Relative to:                       12/3    11/19
Corn                                         133.87% 128.25%
Soybean Meal                                 51.43%  48.18%
Cost Per Unit of Protein:
DDG                                          $7.48   $6.93
Soybean Meal                                 $8.27   $8.17
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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