Market Matters Blog
DDG Prices Steady
OMAHA (DTN) -- Distillers dried grains spot prices from the 40 locations DTN contacted were mixed, but the average price was steady at $133 per ton versus one week ago for the week ended Oct. 11.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Oct. 11 was at 101.85%. The value of DDG relative to soybean meal was at 42.52%. The cost per unit of protein for DDG was $4.93, compared to the cost per unit of protein for soybean meal at $6.59.
DDG exporters are currently having problems moving rail cars into Mexico because rail lines are congested, which could pressure DDG prices until traffic improves.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
On Oct. 1, the BNSF said in a service advisory that, "Due to congestion at the FXE Eagle Pass and El Paso, Texas, interchanges, BNSF has issued a permit embargo for all grain, dried distillers grain (DDG), wheat, soybean, soybean meal, corn, and corn syrup shipments destined to the FXE at these junctions."
In their weekly distillers dried grains with solubles (DDGS) price update, U.S. Grains Council noted, "Merchandisers report that, following a brisk period of container buying, the market is relatively quiet as international buyers assess their near-term needs. This pause should allow the U.S. river system to clear out and more DDGS to move down to the Gulf for export. DDGS prices are mixed this week. Prices at the U.S. Gulf fell $1 per metric ton (mt) to $183/mt. On average, prices for 40-foot containers to Southeast Asia were up $4/mt for October delivery."
River conditions are not likely to improve anytime soon. As of Friday morning, the USACE had closed six locks between Lock 16 and Lock 24 on the Mississippi River, with the likelihood of two more closures by the weekend. The locks are not expected to reopen until sometime between Oct. 18 and Oct. 22. The high water has caused the closures after water started to flow over and through the lock structures, making it unsafe for tows to pass through.
ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
COMPANY | STATE | 10/11/2018 | 10/4/2018 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $145 | $145 | $0 | |
Modified | $75 | $75 | $0 | ||
Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
Missouri | Dry | $145 | $145 | $0 | |
Wet | $75 | $75 | $0 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $145 | $140 | $5 | |
Indiana | Dry | $132 | $132 | $0 | |
Iowa | Dry | $130 | $130 | $0 | |
Michigan | Dry | $140 | $140 | $0 | |
Minnesota | Dry | $130 | $130 | $0 | |
North Dakota | Dry | $130 | $130 | $0 | |
New York | Dry | $155 | $155 | $0 | |
South Dakota | Dry | $130 | $130 | $0 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $142 | $142 | $0 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $126 | $128 | -$2 | |
Iowa | Dry | $127 | $127 | $0 | |
Michigan | Dry | $134 | $139 | -$5 | |
Minnesota | Dry | $130 | $130 | $0 | |
Missouri | Dry | $137 | $143 | -$6 | |
Ohio | Dry | $135 | $135 | $0 | |
South Dakota | Dry | $128 | $130 | -$2 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $132 | $135 | -$3 | |
Wet | $55 | $55 | $0 | ||
Illinois | Dry | $145 | $148 | -$3 | |
Nebraska | Dry | $132 | $135 | -$3 | |
Wet | $55 | $55 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $130 | $130 | $0 | |
Indiana | Dry | $130 | $130 | $0 | |
Iowa | Dry | $125 | $125 | $0 | |
Michigan | Dry | $135 | $135 | $0 | |
Minnesota | Dry | $125 | $125 | $0 | |
Nebraska | Dry | $135 | $135 | $0 | |
New York | Dry | $140 | $140 | $0 | |
North Dakota | Dry | $140 | $140 | $0 | |
Ohio | Dry | $125 | $125 | $0 | |
South Dakota | Dry | $125 | $125 | $0 | |
Wisconsin | Dry | $130 | $130 | $0 | |
Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
Indiana | Dry | $140 | $140 | $0 | |
Iowa | Dry | $125 | $130 | -$5 | |
Minnesota | Dry | $130 | $135 | -$5 | |
Nebraska | Dry | $135 | $135 | $0 | |
Ohio | Dry | $140 | $140 | $0 | |
South Dakota | Dry | $125 | $125 | $0 | |
California | $187 | $187 | $0 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $194 | $195 | -$1 | |
*Prices listed per ton. | |||||
Weekly Average | $133 | $133 | $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 | 10/11/2018 | $3.6925 | $131.88 |
Soybean Meal | 10/11/2018 | $312.80 | |
DDG Weekly Average Spot Price | $133.00 | ||
DDG Value Relative to: | 10/11 | 10/4 | |
Corn | 101.85% | 101.33% | |
Soybean Meal | 42.52% | 43.13% | |
Cost Per Unit of Protein: | |||
DDG | $4.93 | $4.93 | |
Soybean Meal | $6.59 | $6.49 | |
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)
© Copyright 2018 DTN/The Progressive Farmer. All rights reserved.
Comments
To comment, please Log In or Join our Community .