Market Matters Blog
Domestic DDG Average Price Steady
OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was steady at $141 per ton for the week ended Feb. 28 versus the prior week.
Spot truck values collected by DTN are firm on average with a notable increase in California prices. A merchandiser there said logistics are "abysmal" and getting worse in reference to the rain and snow causing flooding in parts of the state. Logistics in the Northern Plains were also a mess after last week's blizzard that caused many major roads to close, especially in southern Minnesota in to Wisconsin.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Feb. 28 was at 109.06%. The value of DDG relative to soybean meal was at 46.64%. The cost per unit of protein for DDG was $5.22, compared to the cost per unit of protein for soybean meal at $6.36.
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In their weekly DDGS update, the U.S. Grains Council noted that FOB vessel U.S. Gulf for April delivery is at $224/mt, as barge logistics remain challenging. "Better weather in the coming weeks should help push more product volume to the Gulf. U.S. rail rates were unchanged for nearby delivery. Internationally, 40-foot containers to Southeast Asia (March delivery) were down $5/mt for March delivery, on average. Merchandisers have reported some volatility in prices as global buyers interpret macroeconomic and trade policy news. Meanwhile, multiple sales to Vietnam were reported."
The entire Lower Mississippi River is a mess and a recent accident at Vicksburg has closed the river south of there. A tow hit the Vicksburg Bridge, sinking 4 barges on Feb. 27 and until they are recovered, traffic will be stopped from going through Vicksburg and south down to the Gulf. Tom Russell, Russell Marine Group told DTN, "New Orleans and Baton Rouge Harbors continue to struggle with stoppages and slowdowns due high water, fog, and rain. At least 30% of production capacity has been lost, creating a backlog of ships waiting to load. The river in the harbor will remain at flood stage throughout the month of March. Expect high water conditions for an extended period of time."
ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
COMPANY | STATE | 2/28/2019 | 2/21/2019 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $150 | $150 | $0 | |
Wet | $78 | $78 | $0 | ||
Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
Missouri Subject | Dry | $155 | $155 | $0 | |
Wet | $80 | $80 | $0 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $150 | $150 | $0 | |
Indiana | Dry | $145 | $145 | $0 | |
Iowa | Dry | $135 | $135 | $0 | |
Michigan | Dry | $145 | $145 | $0 | |
Minnesota | Dry | $140 | $140 | $0 | |
North Dakota | Dry | $145 | $145 | $0 | |
New York | Dry | $160 | $160 | $0 | |
South Dakota | Dry | $145 | $145 | $0 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $145 | $145 | $0 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $135 | $136 | -$1 | |
Iowa | Dry | $135 | $134 | $1 | |
Michigan | Dry | $130 | $130 | $0 | |
Minnesota | Dry | $134 | $134 | $0 | |
Missouri | Dry | $155 | $149 | $6 | |
Ohio | Dry | $143 | $145 | -$2 | |
South Dakota | Dry | $145 | $145 | $0 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $140 | $140 | $0 | |
Wet | $60 | $60 | $0 | ||
Illinois | Dry | $150 | $150 | $0 | |
Nebraska | Dry | $140 | $140 | $0 | |
Wet | $60 | $60 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $137 | $137 | $0 | |
Indiana | Dry | $138 | $138 | $0 | |
Iowa | Dry | $135 | $130 | $5 | |
Michigan | Dry | $130 | $130 | $0 | |
Minnesota | Dry | $130 | $128 | $2 | |
Nebraska | Dry | $135 | $130 | $5 | |
New York | Dry | $155 | $155 | $0 | |
North Dakota | Dry | $155 | $155 | $0 | |
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 | $150 | $150 | $0 | |
Iowa | Dry | $135 | $135 | $0 | |
Minnesota | Dry | $135 | $135 | $0 | |
Nebraska | Dry | $135 | $135 | $0 | |
Ohio | Dry | $155 | $160 | -$5 | |
South Dakota | Dry | $140 | $140 | $0 | |
California | $204 | $197 | $7 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $214 | $208 | $6 | |
*Prices listed per ton. | |||||
Weekly Average | $141 | $141 | $0 | ||
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 | 2/28/2019 | $3.6200 | $129.29 |
Soybean Meal | 2/28/2019 | $302.30 | |
DDG Weekly Average Spot Price | $141.00 | ||
DDG Value Relative to: | 2/28 | 2/21 | |
Corn | 109.06% | 105.14% | |
Soybean Meal | 46.64% | 46.09% | |
Cost Per Unit of Protein: | |||
DDG | $5.22 | $5.22 | |
Soybean Meal | $6.36 | $6.44 | |
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
(CZ)
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