Market Matters Blog
DTN Weekly Average DDG Price Steady
OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly spot price from the 40 locations DTN contacted was unchanged on average at $147 per ton for the week ended Feb. 13. Demand remains flat for this time of year and the extreme cold that set in through parts of the Midwest this week is not expected to last long.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Feb. 13 was at 108.46%. The value of DDG relative to soybean meal was at 50.36%. The cost per unit of protein for DDG was $5.44, compared to the cost per unit of protein for soybean meal at $6.15.
The Energy Information Administration on Wednesday morning noted that domestic ethanol inventory increased in the week ended Feb. 7 as production fell for the third time in four weeks, down over 4%, while demand dropped about 2%.
In its weekly DDGS export update the U.S. Grains Council noted, "DDGS markets are higher this week with Barge CIF NOLA and FOB NOLA offers up $1 to $2 per metric ton (mt) while U.S. rail rates are steady following last week's increases. Asian demand is strengthening with buyers validating higher asking prices. Prices for 40-foot containers to Thailand and Vietnam are up $5 to $6/mt for spot shipment while April positions have posted smaller gains. Containers destined for Southeast Asia are up $5/mt this week, averaging $252/mt.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
DDGS prices for rail delivered Chicago have been stronger due to container shortages in Chicago, imposing a premium for nearby deliveries and pressuring the deferred deliveries, as the market sees product stuck in rail yards, according to S&P Global Platts. This is due to significant delays in the delivery of containers into the U.S. as container vessels have been idled outside Chinese ports following the coronavirus outbreak.
* 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 | CURRENT | CHANGE | ||
| COMPANY | STATE | 2/13/2020 | 2/6/2020 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $157 | $155 | $2 | |
| Wet | $79 | $78 | $1 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri | Dry | $150 | $150 | $0 | |
| Wet | $78 | $78 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $155 | $155 | $0 | |
| Indiana | Dry | $150 | $150 | $0 | |
| Iowa | Dry | $140 | $135 | $5 | |
| Michigan | Dry | $148 | $145 | $3 | |
| Minnesota | Dry | $145 | $135 | $10 | |
| North Dakota | Dry | $135 | $140 | -$5 | |
| New York | Dry | $155 | $150 | $5 | |
| South Dakota | Dry | $135 | $135 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $148 | $148 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $155 | $155 | $0 | |
| Iowa | Dry | $140 | $142 | -$2 | |
| Michigan | Dry | $150 | $150 | $0 | |
| Minnesota | Dry | $138 | $140 | -$2 | |
| Missouri | Dry | $155 | $155 | $0 | |
| Ohio | Dry | $160 | $160 | $0 | |
| South Dakota | Dry | $148 | $152 | -$4 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $150 | $150 | $0 | |
| Wet | $55 | $55 | $0 | ||
| Illinois FEB | Dry | $162 | $162 | $0 | |
| Nebraska | Dry | $150 | $150 | $0 | |
| Wet | $50 | $50 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $152 | $152 | $0 | |
| Indiana | Dry | $155 | $155 | $0 | |
| Iowa | Dry | $140 | $140 | $0 | |
| Michigan | Dry | $150 | $150 | $0 | |
| Minnesota | Dry | $140 | $140 | $0 | |
| Nebraska | Dry | $135 | $135 | $0 | |
| New York | Dry | $160 | $160 | $0 | |
| North Dakota | Dry | $145 | $145 | $0 | |
| Ohio | Dry | $160 | $160 | $0 | |
| South Dakota | Dry | $140 | $140 | $0 | |
| Wisconsin | Dry | $143 | $143 | $0 | |
| Valero Energy Corp, San Antonio Texas | |||||
| Indiana | Dry | $150 | $150 | $0 | |
| Iowa | Dry | $140 | $140 | $0 | |
| Minnesota | Dry | $135 | $140 | -$5 | |
| Nebraska | Dry | $145 | $145 | $0 | |
| Ohio | Dry | $160 | $160 | $0 | |
| South Dakota | Dry | $140 | $140 | $0 | |
| California | Dry | $198 | $204 | -$6 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $207 | $207 | $0 | |
| *Prices listed per ton. | |||||
| Weekly Average | $147 | $147 | $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 | 2/13/2020 | $3.7950 | $135.54 |
| Soybean Meal | 2/13/2020 | $291.90 | |
| DDG Weekly Average Spot Price | $147.00 | ||
| DDG Value Relative to: | 2/14 | 2/6 | |
| Corn | 108.46% | 108.53% | |
| Soybean Meal | 50.36% | 51.00% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.44 | $5.44 | |
| Soybean Meal | $6.15 | $6.07 | |
| 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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