Market Matters Blog
DTN Weekly Average DDG Price Higher
OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly average spot price from the 40 locations DTN contacted was up $1 at $144 per ton for the week ended Dec. 5. Prices were firm this week as cash corn prices were strong last week and other feed products moved higher during the holiday week.
Wednesday's weekly Energy Information Administration report noted for the week ended Nov. 29, U.S. ethanol supply moved off its lowest level since early 2017, rising 362,000 barrels (bbl) to 20.639 million bbl. The weekly report also noted plant production was higher amid declining demand.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Dec. 5 was at 110.31%. The value of DDG relative to soybean meal was at 48.08%. The cost per unit of protein for DDG was $5.33, compared to the cost per unit of protein for soybean meal at $6.31. The DDG-to-soymeal price ratio continues to remain above the three-year average.
In its weekly export DDGS update, the U.S. Grains Council noted, "The U.S. DDGS market is quiet this week with Barge CIF NOLA and FOB NOLA offers lower in sympathy with falling transportation costs. DDGS rail-delivered to the Pacific Northwest are down $1 to $2 per metric ton (mt) this week with merchandisers citing better rail rates. Internationally, exporters cite strong demand for U.S. feedstuffs from Southeast Asia. Containerized DDGS delivered to Southeast Asia are $2 to $4/mt higher this week and are averaging $243/mt for December shipment."
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
The U.S. Census Bureau reported Dec. 5 that October DDGS export shipments were down 27% to an eight-month low at 759,979 mt, down nearly 258,000 mt versus one year ago. Mexico remains the top buyer of U.S. DDGS, with October shipments up 8%. Turkey and New Zealand were absent buyers in October, adding to the lower volume for the month.
* 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 | 12/5/2019 | 11/21/2019 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $162 | $155 | $7 | |
| Wet | $81 | $78 | $3 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri Subject | Dry | $165 | $160 | $5 | |
| Wet | $80 | $80 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $135 | $135 | $0 | |
| Indiana | Dry | $140 | $140 | $0 | |
| Iowa | Dry | $135 | $135 | $0 | |
| Michigan | Dry | $150 | $150 | $0 | |
| Minnesota | Dry | $135 | $135 | $0 | |
| North Dakota | Dry | $135 | $135 | $0 | |
| New York | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $125 | $125 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $155 | $150 | $5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $150 | $140 | $10 | |
| Iowa | Dry | $138 | $137 | $1 | |
| Michigan | Dry | $135 | $135 | $0 | |
| Minnesota | Dry | $137 | $137 | $0 | |
| Missouri | Dry | $155 | $155 | $0 | |
| Ohio | Dry | $150 | $145 | $5 | |
| South Dakota | Dry | $150 | $145 | $5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $150 | $150 | $0 | |
| Wet | $55 | $55 | $0 | ||
| Illinois | Dry | $153 | $153 | $0 | |
| Nebraska | Dry | $150 | $150 | $0 | |
| Wet | $60 | $60 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $145 | $145 | $0 | |
| Indiana | Dry | $145 | $145 | $0 | |
| Iowa | Dry | $145 | $145 | $0 | |
| Michigan | Dry | $140 | $140 | $0 | |
| Minnesota | Dry | $135 | $135 | $0 | |
| Nebraska | Dry | $150 | $150 | $0 | |
| New York | Dry | $165 | $165 | $0 | |
| North Dakota | Dry | $135 | $135 | $0 | |
| Ohio | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $135 | $135 | $0 | |
| Wisconsin | Dry | $135 | $135 | $0 | |
| Valero Energy Corp, San Antonio Texas | |||||
| Indiana | Dry | $150 | $150 | $0 | |
| Iowa | Dry | $135 | $135 | $0 | |
| Minnesota | Dry | $135 | $135 | $0 | |
| Nebraska | Dry | $145 | $145 | $0 | |
| Ohio | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $140 | $140 | $0 | |
| California | Dry | $208 | $208 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $218 | $214 | $4 | |
| *Prices listed per ton. | |||||
| Weekly Average | $144 | $143 | $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 | 12/5/2019 | $3.6550 | $130.54 |
| Soybean Meal | 12/5/2019 | $299.50 | |
| DDG Weekly Average Spot Price | $144.00 | ||
| DDG Value Relative to: | 12/5 | 11/21 | |
| Corn | 110.31% | 108.66% | |
| Soybean Meal | 48.08% | 47.51% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.33 | $5.30 | |
| Soybean Meal | $6.31 | $6.34 | |
| 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
(BAS/CZ)
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