Market Matters Blog
DDG Prices Continue Downward Slide
OMAHA (DTN) -- The average distillers dried grains (DDG) spot price from the 39 locations DTN contacted was sharply lower again this week at an average of $149 per ton for the week-ended June 14, down $11 versus one week ago.
Merchandisers noted that the sharp decline seen again this week can be blamed on the recent large losses in corn and soymeal prices. Also, there is no shortage of product, as the most recent EIA report showed that ethanol plant production was estimated at 1.053 million barrels per day for the week-ending June 8, slightly higher than the prior week.
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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week-ended June 14 was at 114.93%, and the value of DDG relative to soybean meal was at 43.41%. The cost per unit of protein for DDG was $5.52, compared to the cost per unit of protein for soybean meal at $7.23. Even with the drop in DDG prices, DDG remains a better value in rations than soymeal on a per-protein unit cost.
In its weekly price update, the U.S. Grains Council (USGC) reported: "Internationally, FOB U.S. Gulf DDGS values slipped this week while containers CIF Southeast Asia fell $8 per metric ton on average.
ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
COMPANY | STATE | 6/14/2018 | 6/7/2018 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $155 | $170 | -$15 | |
Modified | $80 | $85 | -$5 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $162 | $172 | -$10 | |
Indiana | Dry | $158 | $165 | -$7 | |
Iowa | Dry | $145 | $160 | -$15 | |
Michigan | Dry | $163 | $165 | -$2 | |
Minnesota | Dry | $140 | $155 | -$15 | |
North Dakota | Dry | $140 | $155 | -$15 | |
New York | Dry | $170 | $170 | $0 | |
South Dakota | Dry | $145 | $160 | -$15 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $150 | $158 | -$8 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $155 | $175 | -$20 | |
Iowa | Dry | $150 | $165 | -$15 | |
Michigan | Dry | $170 | $175 | -$5 | |
Minnesota | Dry | $145 | $160 | -$15 | |
Missouri | Dry | $165 | $175 | -$10 | |
Ohio | Dry | $160 | $175 | -$15 | |
South Dakota | Dry | $145 | $160 | -$15 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $150 | $158 | -$8 | |
Wet | $40 | $40 | $0 | ||
Illinois | Dry | $160 | $172 | -$12 | |
Nebraska | Dry | $150 | $158 | -$8 | |
Wet | $40 | $40 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $155 | $165 | -$10 | |
Indiana | Dry | $150 | $160 | -$10 | |
Iowa | Dry | $140 | $145 | -$5 | |
Michigan | Dry | $150 | $155 | -$5 | |
Minnesota | Dry | $140 | $140 | $0 | |
Nebraska | Dry | $125 | $140 | -$15 | |
New York | Dry | $150 | $165 | -$15 | |
North Dakota | Dry | $140 | $145 | -$5 | |
Ohio | Dry | $155 | $160 | -$5 | |
South Dakota | Dry | $140 | $145 | -$5 | |
Wisconsin | Dry | $145 | $145 | $0 | |
Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
Indiana | Dry | $150 | $165 | -$15 | |
Iowa | Dry | $135 | $160 | -$25 | |
Minnesota | Dry | $140 | $160 | -$20 | |
Nebraska | Dry | $125 | $140 | -$15 | |
Ohio | Dry | $155 | $165 | -$10 | |
South Dakota | Dry | $145 | $165 | -$20 | |
California | $195 | $220 | -$25 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $220 | $230 | -$10 | |
*Prices listed per ton. | |||||
Weekly Average | $149 | $160 | -$11 | ||
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 | 6/14/2018 | $3.6300 | $129.64 |
Soybean Meal | 6/14/2018 | $343.20 | |
DDG Weekly Average Spot Price | $149.00 | ||
DDG Value Relative to: | 6/14 | 6/7 | |
Corn | 114.93% | 119.07% | |
Soybean Meal | 43.41% | 44.64% | |
Cost Per Unit of Protein: | |||
DDG | $5.52 | $5.93 | |
Soybean Meal | $7.23 | $7.55 | |
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
(AG)
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