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DDG Weekly Update             08/14 11:14

   DTN Weekly Average DDG Price Higher

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

Mary Kennedy
DTN Basis Analyst

   OMAHA (DTN) -- Of the 40 locations DTN contacted with spot offers for 
domestic distillers dried grains (DDG) for the week ended Aug. 13, prices were 
at $131 per ton, $3 higher on average versus the prior week.

   DDG prices improved in some areas with nearby supplies becoming tight as 
demand increases and some sellers told DTN they have sold much of their August 
product. The DTN National Corn Index was 14 cents higher versus one week ago, 
adding some price support.

   Based on the average of prices collected by DTN, the value of DDG relative 
to corn for the week ended Aug. 13 was 112.77%, and the value of DDG relative 
to soybean meal was 45.16%. The cost per unit of protein for DDG was $4.85, 
compared to the cost per unit of protein for soybean meal at $6.11. Cash 
soybean meal prices have dropped $8 to $9 per ton versus one week ago.

   In its weekly export DDGS update, the U.S. Grains Council said: "On the 
export market, asking prices are higher this week but exporters report buyers 
are remaining patient so far. Sources note a few DDGS combination vessels have 
been traded this week but markets have been quiet otherwise. Barge CIF NOLA 
offers are up $12 per metric ton (mt) for September positions while 
October/November offers are up $7-$8/mt. FOB NOLA offers are $8-$9/mt higher 
this week with rail delivered DDGS rising $8/mt as well. Offers for 40-foot 
containers to Southeast Asia are mostly steady/slightly lower this week, 
averaging $240/mt."

   The Energy Information Administration noted that U.S. ethanol inventory was 
down 3% in the first week of August, sliding to the lowest level in more than 3 
1/2 years as demand rose to a better than four-month high and production hit a 
three-week low. At 19.750 million barrels (bbl), domestic ethanol stocks fell 
about 600,000 bbl to the lowest level since the final week of December 2016 at 
18.678 million bbl. Ethanol plant production continued lower, falling 13,000 
barrels per day (bpd) in the week profiled to 918,000 bpd, 12% lower than the 
corresponding week in 2019. Four-week average output is down 110,000 bpd 
against a year ago at 929,000 bpd.

   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                                 8/13/2020  8/6/2020
Bartlett and Company, Kansas City, MO (816-753-6300) (816 714 3413)
               Missouri                      Dry     $145       $140     $5
                                             Wet     $73        $70      $3
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
               Missouri                      Dry     $150       $140     $10
                                             Wet     $75        $70      $5
CHS, Minneapolis, MN (800-769-1066)
               Illinois                      Dry     $140       $140     $0
               Indiana                       Dry     $130       $130     $0
               Iowa                          Dry     $120       $120     $0
               Michigan                      Dry     $130       $130     $0
               Minnesota                     Dry     $120       $115     $5
               North Dakota                  Dry     $115       $115     $0
               New York                      Dry     $135       $135     $0
               South Dakota                  Dry     $105       $105     $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
               Kansas                        Dry     $130       $130     $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
               Indiana                       Dry     $140       $140     $0
               Iowa                          Dry     $122       $120     $2
               Michigan                      Dry     $130       $130     $0
               Minnesota                     Dry     $120       $120     $0
               Missouri                      Dry     $145       $145     $0
               Ohio                          Dry     $140       $140     $0
               South Dakota                  Dry     $123       $123     $0
United BioEnergy, Wichita, KS (316-616-3521)
               Kansas                        Dry     $130       $130     $0
                                             Wet     $40        $40      $0
               Illinois SEPT                 Dry     $150       $140     $10
               Nebraska                      Dry     $130       $130     $0
                                             Wet     $40        $40      $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
               Illinois                      Dry     $135       $135     $0
               Indiana                       Dry     $135       $135     $0
               Iowa                          Dry     $125       $120     $5
               Michigan                      Dry     $130       $130     $0
               Minnesota                     Dry     $125       $120     $5
               Nebraska                      Dry     $130       $115     $15
               New York                      Dry     $150       $150     $0
               North Dakota                  Dry     $120       $115     $5
               Ohio                          Dry     $140       $135     $5
               South Dakota                  Dry     $110       $105     $5
               Wisconsin                     Dry     $135       $130     $5
Valero Energy Corp, San Antonio Texas
               Indiana                       Dry     $147       $147     $0
               Iowa                          Dry     $0         $0       $0
               Minnesota                     Dry     $0         $0       $0
               Nebraska                      Dry     $0         $0       $0
               Ohio                          Dry     $137       $137     $0
               South Dakota                  Dry     $0         $0       $0
               California                    Dry     $0         $0       $0
Western Milling, Goshen, California (559-302-1074)
               California                    Dry     $201       $200     $1
*Prices listed per ton.
               Weekly Average                        $131       $128     $3
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                                      8/13/2020      $3.2525   $116.16
Soybean Meal                              8/13/2020                $290.10
DDG Weekly Average Spot Price                                      $131.00
DDG Value Relative to:                                   8/13      8/6
Corn                                                     112.77%   115.15%
Soybean Meal                                             45.16%    45.60%
Cost Per Unit of Protein:
DDG                                                      $4.85     $4.74
Soybean Meal                                             $6.11     $5.91
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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