Market Matters Blog
DTN Weekly DDG Price Higher on Average
OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly average spot price from the 40 locations DTN contacted was up $2, to $142 per ton for the week ended Oct. 10. Prices were mixed from various sellers, but the strength in the cash basis kept the market firm in spite of the sharply lower close in corn futures Thursday.
The Energy Information Administration reported on Wednesday that ethanol inventory in the U.S. was drawn down 2 million barrels (bbl) to a 21.2 million bbl two-year low during the week ended Oct. 4. The steep draw came despite a small decline in blending activity and as domestic plant production edged higher.
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 Oct. 10 was at 104.56%. The value of DDG relative to soybean meal was at 46.69%. The cost per unit of protein for DDG was $5.26, compared to the cost per unit of protein for soybean meal at $6.40.
In its weekly export DDGS update, the U.S. Grains Council stated, "Barge CIF NOLA prices are slightly lower this week while FOB Gulf offers are steady to $1 per metric ton (mt) lower. Rates for DDGS delivered via rail to the PNW are $2 to $3/MT higher this week with the winter storm across the northwestern Plains complicating logistics. Prices for 40-foot containers to Southeast Asia are $5/MT lower this week for October shipment but are $1 to $2/MT higher for November/December shipment."
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
| COMPANY | STATE | 10/11/2019 | 10/3/2019 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Subject | Missouri | Dry | $150 | $150 | $0 |
| Subject | Wet | $75 | $75 | $0 | |
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri Subject | Dry | $147 | $142 | $5 | |
| Wet | $75 | $72 | $3 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $140 | $140 | $0 | |
| Indiana | Dry | $140 | $145 | -$5 | |
| Iowa | Dry | $135 | $130 | $5 | |
| Michigan | Dry | $150 | $145 | $5 | |
| Minnesota | Dry | $135 | $130 | $5 | |
| North Dakota | Dry | $130 | $130 | $0 | |
| New York | Dry | $150 | $145 | $5 | |
| South Dakota | Dry | $125 | $125 | $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 | $150 | $150 | $0 | |
| Iowa | Dry | $145 | $145 | $0 | |
| Michigan | Dry | $135 | $135 | $0 | |
| Minnesota | Dry | $140 | $145 | -$5 | |
| Missouri | Dry | $145 | $145 | $0 | |
| Ohio | Dry | $155 | $155 | $0 | |
| South Dakota | Dry | $150 | $150 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $140 | $145 | -$5 | |
| Wet | $45 | $55 | -$10 | ||
| Illinois | Dry | $147 | $147 | $0 | |
| Nebraska | Dry | $145 | $145 | $0 | |
| Wet | $45 | $50 | -$5 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $145 | $140 | $5 | |
| Indiana | Dry | $155 | $150 | $5 | |
| Iowa | Dry | $140 | $135 | $5 | |
| Michigan | Dry | $150 | $145 | $5 | |
| Minnesota | Dry | $135 | $130 | $5 | |
| Nebraska | Dry | $140 | $135 | $5 | |
| New York | Dry | $165 | $160 | $5 | |
| North Dakota | Dry | $140 | $135 | $5 | |
| Ohio | Dry | $155 | $150 | $5 | |
| South Dakota | Dry | $135 | $130 | $5 | |
| Wisconsin | Dry | $135 | $130 | $5 | |
| Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
| Subject | Indiana | Dry | $136 | $136 | $0 |
| Subject | Iowa | Dry | $135 | $135 | $0 |
| Subject | Minnesota | Dry | $140 | $140 | $0 |
| Subject | Nebraska | Dry | $135 | $135 | $0 |
| Subject | Ohio | Dry | $145 | $145 | $0 |
| Subject | South Dakota | Dry | $135 | $135 | $0 |
| Subject | California | Dry | $200 | $200 | $0 |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $206 | $203 | $3 | |
| *Prices listed per ton. | |||||
| Weekly Average | $142 | $140 | $2 | ||
| 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 | 10/10/2019 | $3.8025 | $135.80 |
| Soybean Meal | 10/10/2019 | $304.10 | |
| DDG Weekly Average Spot Price | $142.00 | ||
| DDG Value Relative to: | 10/10 | 10/3 | |
| Corn | 104.56% | 100.11% | |
| Soybean Meal | 46.69% | 46.64% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.26 | $5.15 | |
| Soybean Meal | $6.40 | $6.27 | |
| 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
(BAS/BE)
© Copyright 2019 DTN/The Progressive Farmer. All rights reserved.
Comments
To comment, please Log In or Join our Community .