Market Matters Blog
DTN Weekly Average DDG Price Lower
OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was down $5, at $135 per ton, for the week ended Aug. 1.
DDG spot prices have come under pressure from the losses in the corn market the past 10 days and the weakness in soybean meal and other feedstuffs, in addition to a slowdown in summer demand.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Aug. 1 was at 96.24%. The value of DDG relative to soybean meal was at 46.04%. The cost per unit of protein for DDG was $5.00, compared to the cost per unit of protein for soybean meal at $6.17.
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The midweek Energy Information Administration report noted that ethanol supply in the U.S. increased for a fifth straight week in the week ended July 26, up 779,000 barrels (bbl) to a 24.468-million-bbl record high, building despite another decline in domestic plant production that fell to the lowest level since late April.
In its weekly export DDGS update, the U.S. Grains Council stated, "Prices for DDGS CIF NOLA barge and FOB U.S. Gulf are lower this week as improving Mississippi River conditions have allowed once-trapped barges to move downriver to the Gulf. Merchandisers report that Gulf capacity is tight and that is keeping asking prices competitive. Exporters note that international demand is somewhat quieter this week and that the CBOT selloff in corn and soybean meal futures has influenced DDGS as well. FOB NOLA price indications were last quoted at $200 per metric ton (mt) while 40-foot containers CNF Southeast Asia were steady this week at $236/mt."
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
| COMPANY | STATE | 7/25/2019 | 7/25/2019 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $155 | $155 | $0 | |
| Wet | $78 | $78 | $0 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri Subject | Dry | $140 | $150 | -$10 | |
| Wet | $72 | $78 | -$6 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $140 | $145 | -$5 | |
| Indiana | Dry | $135 | $140 | -$5 | |
| Iowa | Dry | $125 | $130 | -$5 | |
| Michigan | Dry | $145 | $150 | -$5 | |
| Minnesota | Dry | $120 | $125 | -$5 | |
| North Dakota | Dry | $125 | $130 | -$5 | |
| New York | Dry | $145 | $150 | -$5 | |
| South Dakota | Dry | $120 | $125 | -$5 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $135 | $140 | -$5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $150 | $155 | -$5 | |
| Iowa | Dry | $125 | $130 | -$5 | |
| Michigan | Dry | $125 | $130 | -$5 | |
| Minnesota | Dry | $130 | $135 | -$5 | |
| Missouri | Dry | $150 | $155 | -$5 | |
| Ohio | Dry | $160 | $165 | -$5 | |
| South Dakota | Dry | $140 | $145 | -$5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $135 | $145 | -$10 | |
| Wet | $40 | $40 | $0 | ||
| Illinois | Dry | $140 | $145 | -$5 | |
| Nebraska | Dry | $135 | $145 | -$10 | |
| Wet | $45 | $45 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $135 | $140 | -$5 | |
| Indiana | Dry | $137 | $142 | -$5 | |
| Iowa | Dry | $130 | $130 | $0 | |
| Michigan | Dry | $135 | $140 | -$5 | |
| Minnesota | Dry | $125 | $130 | -$5 | |
| Nebraska | Dry | $130 | $135 | -$5 | |
| New York | Dry | $150 | $150 | $0 | |
| North Dakota | Dry | $130 | $135 | -$5 | |
| Ohio | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $125 | $130 | -$5 | |
| Wisconsin | Dry | $130 | $135 | -$5 | |
| Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
| Indiana | Dry | $130 | $140 | -$10 | |
| Iowa | Dry | $125 | $135 | -$10 | |
| Minnesota | Dry | $125 | $135 | -$10 | |
| Nebraska | Dry | $135 | $135 | $0 | |
| Ohio | Dry | $145 | $150 | -$5 | |
| South Dakota | Dry | $128 | $130 | -$2 | |
| California | Dry | $185 | $195 | -$10 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $198 | $203 | -$5 | |
| *Prices listed per ton. | |||||
| Weekly Average | $135 | $140 | -$5 | ||
| 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 | 8/1/2019 | $3.9275 | $140.27 |
| Soybean Meal | 8/1/2019 | $293.20 | |
| DDG Weekly Average Spot Price | $135.00 | ||
| DDG Value Relative to: | 8/1 | 7/25 | |
| Corn | 96.24% | 93.67% | |
| Soybean Meal | 46.04% | 46.07% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.00 | $5.19 | |
| Soybean Meal | $6.17 | $6.40 | |
| 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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