Market Matters Blog
DDG Prices Continue Higher
OMAHA (DTN) -- Distillers dried grains average spot prices from the 40 locations DTN contacted were $8 per ton higher, at $146 per ton for the week ended Nov. 29, versus two weeks ago. Prices have moved higher three weeks in a row, and merchandisers noted that slowdowns and plant closures has really tightened supplies.
Informa Economics noted that, one of the main reasons for the quick jump higher in DDG prices is struggling ethanol plant margins. "A 13-year low in ethanol prices is putting the squeeze on financial health and throttling production potential for the winter."
The EIA reported Wednesday that ethanol plant production increased modestly by 6,000 barrels per day (bpd) to 1,048 million bpd during the week ended Nov. 23, 1.7% lower than the corresponding week a year ago.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 29 was at 113.48%. The value of DDG relative to soybean meal was at 47.57%. The cost per unit of protein for DDG was $5.41, compared to the cost per unit of protein for soybean meal at $6.46. On a relative value, DDG prices are mostly in line with soymeal, but are slightly higher than normal basis corn values.
"Higher prices could start to create more pushback in rations down the line, but for now most traders are leaning bullish," noted Informa.
ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
COMPANY | STATE | 11/29/2018 | 11/15/2018 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $160 | $153 | $7 | |
Modified | $82 | $80 | $2 | ||
Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
Missouri Subject | Dry | $165 | $150 | $15 | |
Wet | $80 | $75 | $5 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $150 | $145 | $5 | |
Indiana | Dry | $145 | $135 | $10 | |
Iowa | Dry | $145 | $135 | $10 | |
Michigan | Dry | $140 | $140 | $0 | |
Minnesota | Dry | $145 | $130 | $15 | |
North Dakota | Dry | $155 | $135 | $20 | |
New York | Dry | $155 | $145 | $10 | |
South Dakota | Dry | $145 | $130 | $15 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $155 | $145 | $10 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $143 | $138 | $5 | |
Iowa | Dry | $152 | $148 | $4 | |
Michigan | Dry | $140 | $137 | $3 | |
Minnesota | Dry | $147 | $138 | $9 | |
Missouri | Dry | $167 | $158 | $9 | |
Ohio | Dry | $142 | $138 | $4 | |
South Dakota | Dry | $150 | $140 | $10 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $144 | $144 | $0 | |
Wet | $55 | $55 | $0 | ||
Illinois | Dry | $150 | $148 | $2 | |
Nebraska | Dry | $144 | $144 | $0 | |
Wet | $55 | $55 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $135 | $135 | $0 | |
Indiana | Dry | $145 | $135 | $10 | |
Iowa | Dry | $145 | $135 | $10 | |
Michigan | Dry | $140 | $135 | $5 | |
Minnesota | Dry | $145 | $130 | $15 | |
Nebraska | Dry | $160 | $145 | $15 | |
New York | Dry | $150 | $150 | $0 | |
North Dakota | Dry | $150 | $140 | $10 | |
Ohio | Dry | $145 | $135 | $10 | |
South Dakota | Dry | $145 | $135 | $10 | |
Wisconsin | Dry | $136 | $130 | $6 | |
Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
Indiana | Dry | $139 | $140 | -$1 | |
Iowa | Dry | $135 | $130 | $5 | |
Minnesota | Dry | $145 | $130 | $15 | |
Nebraska | Dry | $135 | $125 | $10 | |
Ohio | Dry | $140 | $140 | $0 | |
South Dakota | Dry | $140 | $125 | $15 | |
California | $212 | $192 | $20 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $223 | $206 | $17 | |
*Prices listed per ton. | |||||
Weekly Average | $146 | $138 | $8 | ||
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 | 11/29/2018 | $3.6025 | $128.66 |
Soybean Meal | 11/29/2018 | $306.90 | |
DDG Weekly Average Spot Price | $146.00 | ||
DDG Value Relative to: | 11/29 | 11/16 | |
Corn | 113.48% | 105.14% | |
Soybean Meal | 47.57% | 45.19% | |
Cost Per Unit of Protein: | |||
DDG | $5.41 | $5.11 | |
Soybean Meal | $6.46 | $6.43 |
Mary Kennedy can be reached at mary.kennedy@dtn.com
Follow her on Twitter @MaryCKenn
(BAS/BE)
© Copyright 2018 DTN/The Progressive Farmer. All rights reserved.
Comments
To comment, please Log In or Join our Community .