Market Matters Blog
DDG Prices Firm
OMAHA (DTN) -- The average distillers dried grain (DDG) spot price from the 39 locations where DTN collected bids was $153 for the week ended March 15, up 1 cent on average versus a week ago.
Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended March 15 was at 110.77%, and the value of DDG relative to soybean meal was at 41.24%. The cost per unit of protein for DDG was $5.67, compared to the cost per unit of protein for soybean meal at $7.81. Prices have remained firm even while soymeal has moved lower. DDG still has a per-protein unit cost advantage to soymeal.
The U.S. Grains Council (USGC) said in its weekly price update that exporters asking prices for DDGS are higher this week, which has foreign buyers mostly "kicking the tires," according to U.S. merchandisers.
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"Some sales to Southeast Asia has been completed, but only with modest volume," noted USGC. "Traded prices (CIF Southeast Asia) for April shipments are steady this week, averaging $232 per metric ton (mt), while prices for May/June are $2/mt higher. Prices for product destined for Myanmar and Bangladesh had the highest increase this week, rising $4 and $6/mt, respectively, for May shipment."
Barge CIF New Orleans, Louisiana, (NOLA) and FOB NOLA DDGS values are higher this week as the recent logistics issues clear. Both prices are $4/mt higher while rail-delivered Pacific Northwest prices fell an equal amount. A merchandiser told DTN that barge loadings are picking up as the lower Upper Mississippi River (UMR) has opened for the 2018 shipping season. Barges are still unable to move to the upper portion of the UMR, as Lake Pepin still has too deep of ice in the middle of the lake. Once it melts, barges can then make their way up to the Twin Cities shipping district.
| CURRENT | CURRENT | CHANGE | |||
| COMPANY | STATE | 3/15/2018 | 3/8/2018 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $170 | $170 | $0 | |
| Modified | $85 | $85 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $160 | $160 | $0 | |
| Indiana | Dry | $160 | $160 | $0 | |
| Iowa | Dry | $150 | $145 | $5 | |
| Michigan | Dry | $160 | $160 | $0 | |
| Minnesota | Dry | $150 | $145 | $5 | |
| North Dakota | Dry | $155 | $155 | $0 | |
| New York | Dry | $170 | $170 | $0 | |
| South Dakota | Dry | $150 | $145 | $5 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $155 | $150 | $5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $165 | $165 | $0 | |
| Iowa | Dry | $145 | $142 | $3 | |
| Michigan | Dry | $165 | $170 | -$5 | |
| Minnesota | Dry | $145 | $142 | $3 | |
| Missouri | Dry | $160 | $160 | $0 | |
| Ohio | Dry | $165 | $165 | $0 | |
| South Dakota | Dry | $145 | $145 | $0 | |
| ` | ` | ||||
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $160 | $158 | $2 | |
| Wet | $50 | $45 | $5 | ||
| Illinois | Dry | $170 | $165 | $5 | |
| Nebraska | Dry | $160 | $158 | $2 | |
| Wet | $50 | $45 | $5 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $160 | $160 | $0 | |
| Indiana | Dry | $155 | $155 | $0 | |
| Iowa | Dry | $145 | $145 | $0 | |
| Michigan | Dry | $150 | $150 | $0 | |
| Minnesota | Dry | $145 | $145 | $0 | |
| Nebraska | Dry | $150 | $150 | $0 | |
| New York | Dry | $165 | $165 | $0 | |
| North Dakota | Dry | $155 | $155 | $0 | |
| Ohio | Dry | $155 | $155 | $0 | |
| South Dakota | Dry | $145 | $145 | $0 | |
| Wisconsin | Dry | $150 | $150 | $0 | |
| Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
| Indiana | Dry | $145 | $145 | $0 | |
| Iowa | Dry | $140 | $140 | $0 | |
| Minnesota | Dry | $145 | $145 | $0 | |
| Nebraska | Dry | $145 | $145 | $0 | |
| Ohio | Dry | $145 | $145 | $0 | |
| South Dakota | Dry | $140 | $140 | $0 | |
| California | $215 | $215 | $0 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $228 | $226 | $2 | |
| *Prices listed per ton. | |||||
| Weekly Average | $153 | $152 | $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 | 3/15/2018 | $3.8675 | $138.13 |
| Soybean Meal | 3/15/2018 | $371.00 | |
| DDG Weekly Average Spot Price | $153.00 | ||
| DDG Value Relative to: | 3/15 | 3/8 | |
| Corn | 110.77% | 110.33% | |
| Soybean Meal | 41.24% | 39.93% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.67 | $5.63 | |
| Soybean Meal | $7.81 | $8.01 | |
| 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 Mary Kennedy on Twitter @MaryCKenn
(AG)
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