Market Matters Blog
DDG Prices Higher on Average
The DTN average dried distillers grains, or DDG, spot price was up $1 from one week ago, at $96, for the week ended May 11. Of the 39 locations from which DTN collects spot prices, six bids were $1 to $11 higher, three bids were $5 lower, and the balance of the prices were unchanged.
The value of DDG relative to corn, based on those bids for the week ended May 11, was at 74.56% and the value of DDG relative to soybean meal was at 30.85%. The cost per unit of protein for DDG was at $3.84, compared to the cost per unit of protein for soybean meal, at $6.65.
DDG prices were mixed this week, with strength seen in demand from the parts of the Eastern Corn Belt where runtimes have slowed, according to merchandisers. Some plants are slowing production due to maintenance downtimes, and some are slowing due to weakening margins, making DDG supplies in their area tight.
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"Ethanol production margins were mostly lower," reported Informa Economics. "Central Illinois was at $0.07 per gallon as of May 3 while other locations ranged from $0.04 per gallon to $0.27 per gallon. Lower ethanol prices and higher natural gas prices contributed to the weakness in margins." However, according to Informa Economics, ethanol output overall has climbed above the million barrels per day, indicating more supply could fill the market, which may pressure prices.
CIF NOLA (New Orleans, Louisiana) dried distillers grains with solubles, or DDGS, prices for the week ended May 11 were 1 cent lower to 1 cent higher for May at $122 to $126. June prices were unchanged to up 2 cents at $123 to $127. Traffic on the Mississippi River resumed earlier in the week, but tows are still under high water restrictions. Also, the Force Majeure declaration invoked by CME on May 4, 2017, on the Illinois River because of flooding closing some terminals, was removed Friday. In parts of the Lower Mississippi River, tows are only allowed transit during daylight hours to prevent barges from hitting bridges. Water levels continue to rise in New Orleans and Baton Rouge, and the Mississippi River at Baton Rouge is not expected to crest until May 20. Barge and vessel operations are not stopped, but delays are expected to slow traffic. This mess could continue through June.
| CURRENT | PREVIOUS | CHANGE | |||
| COMPANY | STATE | 5/11/2017 | 5/4/2017 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $120 | $120 | $0 | |
| Modified | $60 | $60 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $95 | $95 | $0 | |
| Indiana | Dry | $95 | $95 | $0 | |
| Iowa | Dry | $92 | $92 | $0 | |
| Michigan | Dry | $90 | $90 | $0 | |
| Minnesota | Dry | $90 | $90 | $0 | |
| North Dakota | Dry | $90 | $90 | $0 | |
| New York | Dry | $130 | $130 | $0 | |
| South Dakota | Dry | $90 | $90 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $98 | $98 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $105 | $97 | $8 | |
| Iowa | Dry | $98 | $95 | $3 | |
| Michigan | Dry | $102 | $97 | $5 | |
| Minnesota | Dry | $96 | $95 | $1 | |
| Missouri | Dry | $112 | $112 | $0 | |
| Ohio | Dry | $105 | $94 | $11 | |
| South Dakota | Dry | $96 | $94 | $2 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $103 | $103 | $0 | |
| Wet | $45 | $45 | $0 | ||
| Illinois | Dry | $105 | $105 | $0 | |
| Nebraska | Dry | $103 | $103 | $0 | |
| Wet | $45 | $45 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $100 | $100 | $0 | |
| Indiana | Dry | $90 | $90 | $0 | |
| Iowa | Dry | $95 | $95 | $0 | |
| Michigan | Dry | $95 | $95 | $0 | |
| Minnesota | Dry | $85 | $85 | $0 | |
| Nebraska | Dry | $95 | $95 | $0 | |
| New York | Dry | $120 | $120 | $0 | |
| North Dakota | Dry | $92 | $92 | $0 | |
| Ohio | Dry | $98 | $98 | $0 | |
| South Dakota | Dry | $85 | $85 | $0 | |
| Wisconsin | Dry | $90 | $90 | $0 | |
| Valero Energy Corp., San Antonio, TX (402-932-5901) | |||||
| Indiana | Dry | $90 | $90 | $0 | |
| Iowa | Dry | $90 | $95 | -$5 | |
| Minnesota | Dry | $90 | $90 | $0 | |
| Nebraska | Dry | $95 | $100 | -$5 | |
| Ohio | Dry | $95 | $95 | $0 | |
| South Dakota | Dry | $80 | $85 | -$5 | |
| California | $152 | $152 | $0 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $166 | $166 | $0 | |
| *Prices listed per ton. | |||||
| Weekly Average | $96 | $95 | $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 | 5/11/2017 | $3.6050 | $128.75 |
| Soybean Meal | 5/11/2017 | $311.10 | |
| DDG Weekly Average Spot Price | $96.00 | ||
| DDG Value Relative to: | 5/11 | 5/4 | |
| Corn | 74.56% | 74.30% | |
| Soybean Meal | 30.85% | 30.24% | |
| Cost Per Unit of Protein: | |||
| DDG | $3.84 | $3.80 | |
| Soybean Meal | $6.65 | $6.61 | |
| Notes: | |||
| Corn and soybean prices take from DTN Market Quotes. DDG price represents the average spot price from Midwest companies 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 25. | |||
Mary Kennedy can be reached at mary.kennedy@dtn.com
Follow her on Twitter @MaryCKenn
(BAS\SK)
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