Market Matters Blog
Domestic DDG Prices Slightly Lower on Average
OMAHA (DTN) -- The domestic distillers dried grains average spot price from the 40 locations DTN contacted was $1 lower at $144 per ton for the week ended Jan. 31 versus the prior week.
Spot truck values collected by DTN are steady to lower again this week, even as ethanol plant runtimes have slowed and extreme cold is covering much of the Midwest. While this should mean more demand for DDG and better prices, buyers continue to turn away from the market thinking prices will go lower still.
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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 31 was at 107.09%. The value of DDG relative to soybean meal was at 46.45%. The cost per unit of protein for DDG was $5.33, compared to the cost per unit of protein for soybean meal at $6.53.
Informa Economics recently noted that DDG and ethanol traders are closely watching some possible key developments on the China trade policy front. "Chatter suggests it is possible for the U.S. to regain DDGS export access to China and to create new markets for ethanol. In talks this week, U.S. officials are expected to urge China to drop its anti-dumping and countervailing duties on DDGS."
ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | Previous | CHANGE | ||
COMPANY | STATE | 1/31/2019 | 1/24/2019 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $160 | $165 | -$5 | |
Modified | $85 | $85 | $0 | ||
Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
Missouri Subject | Dry | $150 | $155 | -$5 | |
Wet | $80 | $80 | $0 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $145 | $145 | $0 | |
Indiana | Dry | $140 | $140 | $0 | |
Iowa | Dry | $130 | $130 | $0 | |
Michigan | Dry | $145 | $145 | $0 | |
Minnesota | Dry | $135 | $140 | -$5 | |
North Dakota | Dry | $140 | $140 | $0 | |
New York | Dry | $155 | $155 | $0 | |
South Dakota | Dry | $140 | $140 | $0 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $145 | $155 | -$10 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $140 | $140 | $0 | |
Iowa | Dry | $143 | $143 | $0 | |
Michigan | Dry | $130 | $130 | $0 | |
Minnesota | Dry | $140 | $140 | $0 | |
Missouri | Dry | $158 | $158 | $0 | |
Ohio | Dry | $142 | $142 | $0 | |
South Dakota | Dry | $147 | $147 | $0 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $145 | $145 | $0 | |
Wet | $60 | $60 | $0 | ||
Illinois | Dry | $150 | $150 | $0 | |
Nebraska | Dry | $145 | $145 | $0 | |
Wet | $60 | $60 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $137 | $140 | -$3 | |
Indiana | Dry | $135 | $135 | $0 | |
Iowa | Dry | $132 | $135 | -$3 | |
Michigan | Dry | $135 | $135 | $0 | |
Minnesota | Dry | $135 | $135 | $0 | |
Nebraska | Dry | $135 | $140 | -$5 | |
New York | Dry | $152 | $155 | -$3 | |
North Dakota | Dry | $165 | $170 | -$5 | |
Ohio | Dry | $145 | $145 | $0 | |
South Dakota | Dry | $140 | $140 | $0 | |
Wisconsin | Dry | $135 | $135 | $0 | |
Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
Indiana | Dry | $155 | $155 | $0 | |
Iowa | Dry | $145 | $145 | $0 | |
Minnesota | Dry | $150 | $150 | $0 | |
Nebraska | Dry | $150 | $150 | $0 | |
Ohio | Dry | $160 | $160 | $0 | |
South Dakota | Dry | $155 | $155 | $0 | |
California | $200 | $200 | $0 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $210 | $215 | -$5 | |
*Prices listed per ton. | |||||
Weekly Average | $144 | $145 | -$1 | ||
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 | 1/31/2019 | $3.7650 | $134.46 |
Soybean Meal | 1/31/2019 | $310.00 | |
DDG Weekly Average Spot Price | $144.00 | ||
DDG Value Relative to: | 1/31 | 1/24 | |
Corn | 107.09% | 107.69% | |
Soybean Meal | 46.45% | 46.43% | |
Cost Per Unit of Protein: | |||
DDG | $5.33 | $5.37 | |
Soybean Meal | $6.53 | $6.57 | |
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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