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 steady on average, at $149, for the week ended March 12. The market remains firm given the flat price of corn has dropped nearly 20 cents from one week ago. Spring maintenance is beginning at some plants, which will keep supplies tight in areas where that is happening.
There is still no firm proof that China has actually bought U.S. DDGS (distiller's dried grains with solubles) as has been rumored, but it has been reported that DDGS are part of the tariff extensions granted to Chinese buyers as part of the phase-one deal. Remember that since January 2017, the current antidumping duties imposed by China are between 42.2% and 53.7% and anti-subsidy tariff are 11.2% to 12%, both of which were to remain in place for five years.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended March 12 was 112.83%. The value of DDG relative to soybean meal was 49.90%. The cost per unit of protein for DDG was $5.52, compared to the cost per unit of protein for soybean meal at $6.29.
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In its weekly DDGS export update, the U.S. Grains Council noted, "Additional export and domestic demand is supporting values and prices are expected to remain firm through Q2 2020. FOB Gulf values are up $4/mt for spot delivery and up $2-3 /mt for April/May shipments. U.S. rail rates are up $4-7/mt on firming demand as well, while 40-foot containers to Southeast Asia are up $5/mt for March shipment and are steady for April/May. Offers for containers CNF Southeast Asia are averaging $263/mt for March shipment and $261/MT for April."
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | CURRENT | CHANGE | ||
| COMPANY | STATE | 3/12/2020 | 3/5/2020 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $165 | $165 | $0 | |
| Wet | $83 | $83 | $0 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri | Dry | $160 | $160 | $0 | |
| Wet | $83 | $83 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $157 | $157 | $0 | |
| Indiana | Dry | $152 | $152 | $0 | |
| Iowa | Dry | $145 | $145 | $0 | |
| Michigan | Dry | $150 | $150 | $0 | |
| Minnesota | Dry | $140 | $140 | $0 | |
| North Dakota | Dry | $135 | $135 | $0 | |
| New York | Dry | $165 | $165 | $0 | |
| South Dakota | Dry | $138 | $138 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $148 | $146 | $2 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $155 | $155 | $0 | |
| Iowa | Dry | $145 | $140 | $5 | |
| Michigan | Dry | $150 | $150 | $0 | |
| Minnesota | Dry | $141 | $140 | $1 | |
| Missouri | Dry | $158 | $155 | $3 | |
| Ohio | Dry | $160 | $160 | $0 | |
| South Dakota | Dry | $148 | $144 | $4 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $145 | $145 | $0 | |
| Wet | $50 | $50 | $0 | ||
| Illinois MARCH | Dry | $158 | $158 | $0 | |
| Nebraska | Dry | $145 | $145 | $0 | |
| Wet | $45 | $45 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $158 | $158 | $0 | |
| Indiana | Dry | $158 | $158 | $0 | |
| Iowa | Dry | $143 | $143 | $0 | |
| Michigan | Dry | $158 | $158 | $0 | |
| Minnesota | Dry | $143 | $143 | $0 | |
| Nebraska | Dry | $145 | $138 | $7 | |
| New York | Dry | $163 | $163 | $0 | |
| North Dakota | Dry | $148 | $148 | $0 | |
| Ohio | Dry | $163 | $163 | $0 | |
| South Dakota | Dry | $143 | $143 | $0 | |
| Wisconsin | Dry | $146 | $146 | $0 | |
| Valero Energy Corp, San Antonio Texas | |||||
| Indiana | Dry | $155 | $155 | $0 | |
| Iowa | Dry | $140 | $140 | $0 | |
| Minnesota | Dry | $140 | $140 | $0 | |
| Nebraska | Dry | $135 | $135 | $0 | |
| Ohio | Dry | $160 | $160 | $0 | |
| South Dakota | Dry | $140 | $140 | $0 | |
| California | Dry | $216 | $210 | $6 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $228 | $222 | $6 | |
| *Prices listed per ton. | |||||
| Weekly Average | $149 | $149 | $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 | 3/12/2020 | $3.6975 | $132.05 |
| Soybean Meal | 3/12/2020 | $298.60 | |
| DDG Weekly Average Spot Price | $149.00 | ||
| DDG Value Relative to: | 3/12 | 3/5 | |
| Corn | 112.83% | 107.77% | |
| Soybean Meal | 49.90% | 49.27% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.52 | $5.48 | |
| Soybean Meal | $6.29 | $6.32 | |
| 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. | |||
* 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)
Mary Kennedy can be reached at mary.kennedy@dtn.com
Follow her on Twitter @MaryCKenn
(CZ)
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