Market Matters Blog
DTN Weekly DDG Price Steady on Average
OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly spot price from the 40 locations DTN contacted remained unchanged on average at $147 per ton for the week ended Feb. 27.
While spot DDG prices remained steady on average in spite of corn futures making new lows all week, cash soybean meal prices rallied on news from Argentina's Ministry of Agriculture that it suspended registration of agricultural exports, possibly leading to an increase of export taxes, which is good news for U.S. meal exports should that happen.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Feb. 27 was at 112.92%. The value of DDG relative to soybean meal was at 49.51%. The cost per unit of protein for DDG was $5.44, compared to the cost per unit of protein for soybean meal at $6.25.
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The Energy Information Administration reported domestic ethanol inventory was lower for the week ended Feb. 21, while plant production rose and blending demand rose to a nine-week high.
In its weekly DDGS export update, the U.S. Grains Council noted that, "Merchandisers are reporting that the DDGS markets are quieter this week amid global uncertainty about the economic outlook. Exporters report that international buyers pushed prices to the top end of their recent trading range and are now waiting before extending coverage. Barge CIF NOLA values are down $1 per metric ton (mt), with FOB Gulf offers declining an equal amount. Prices for containers to Southeast Asia are $2/mt higher, however, reaching $255/mt for March shipment."
* CIF (cost, insurance and freight paid by seller) NOLA (New Orleans)
* FOB (free on board means buyer pays costs of ocean freight, insurance, unloading, and transportation from originating port)
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
| COMPANY | STATE | 2/27/2020 | 2/20/2020 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $164 | $160 | $4 | |
| Wet | $82 | $80 | $2 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri | Dry | $160 | $155 | $5 | |
| Wet | $83 | $80 | $3 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $155 | $155 | $0 | |
| Indiana | Dry | $150 | $150 | $0 | |
| Iowa | Dry | $142 | $140 | $2 | |
| Michigan | Dry | $148 | $148 | $0 | |
| Minnesota | Dry | $140 | $145 | -$5 | |
| North Dakota | Dry | $132 | $135 | -$3 | |
| New York | Dry | $165 | $155 | $10 | |
| South Dakota | Dry | $132 | $135 | -$3 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $146 | $148 | -$2 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $155 | $155 | $0 | |
| Iowa | Dry | $136 | $138 | -$2 | |
| Michigan | Dry | $150 | $150 | $0 | |
| Minnesota | Dry | $136 | $138 | -$2 | |
| Missouri | Dry | $155 | $155 | $0 | |
| Ohio | Dry | $160 | $160 | $0 | |
| South Dakota | Dry | $145 | $145 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $145 | $145 | $0 | |
| Wet | $50 | $50 | $0 | ||
| Illinois MARCH | Dry | $158 | $160 | -$2 | |
| Nebraska | Dry | $145 | $145 | $0 | |
| Wet | $45 | $45 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $155 | $155 | $0 | |
| Indiana | Dry | $155 | $155 | $0 | |
| Iowa | Dry | $140 | $140 | $0 | |
| Michigan | Dry | $155 | $155 | $0 | |
| Minnesota | Dry | $140 | $140 | $0 | |
| Nebraska | Dry | $135 | $135 | $0 | |
| New York | Dry | $160 | $160 | $0 | |
| North Dakota | Dry | $145 | $145 | $0 | |
| Ohio | Dry | $160 | $160 | $0 | |
| South Dakota | Dry | $140 | $140 | $0 | |
| Wisconsin | Dry | $143 | $143 | $0 | |
| Valero Energy Corp, San Antonio Texas | |||||
| Indiana | Dry | $150 | $150 | $0 | |
| Iowa | Dry | $140 | $140 | $0 | |
| Minnesota | Dry | $135 | $135 | $0 | |
| Nebraska | Dry | $145 | $145 | $0 | |
| Ohio | Dry | $160 | $160 | $0 | |
| South Dakota | Dry | $140 | $140 | $0 | |
| California | Dry | $198 | $198 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $212 | $210 | $2 | |
| *Prices listed per ton. | |||||
| Weekly Average | $147 | $147 | $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 | 2/27/2020 | $3.6450 | $130.18 |
| Soybean Meal | 2/27/2020 | $296.90 | |
| DDG Weekly Average Spot Price | $147.00 | ||
| DDG Value Relative to: | 2/27 | 2/20 | |
| Corn | 112.92% | 108.74% | |
| Soybean Meal | 49.51% | 50.19% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.44 | $5.44 | |
| Soybean Meal | $6.25 | $6.17 | |
| 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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