DTN DDG Weekly Update

DDG Prices Steady

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for domestic distillers dried grains was up 5 cents at $172 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The average distillers dried grains (DDG) spot price from the 39 locations DTN contacted was $172 per ton for the week-ended May 10, up 5 cents versus two weeks ago. Merchandisers noted that, overall, prices were supported by tight supplies in some areas. A California merchandiser said prices were strong there thanks to Mexico being a large buyer recently.

The U.S. Census Bureau said on May 3 that U.S. exports of distillers dried grains with solubles (DDGS) totaled 905,558 metric tons (mt) in March, down 12% from a year ago. Mexico was the top export destination again in March, accounting for 17% of the total and followed by Vietnam, South Korea, Thailand and Indonesia. The first three months of the year, DDGS exports were down 13% in 2018 from a year ago.

Based on the average of bids collected by DTN, the value of DDG relative to corn for the week-ended May 10 was at 121.01%, and the value of DDG relative to soybean meal was at 44.05%. The cost per unit of protein for DDG was $6.37, compared to the cost per unit of protein for soybean meal at $8.22. Soymeal prices moved lower this past week, causing DDG per-protein unit cost to lose some advantage, but DDG still remains a better value.

The U.S. Grains Council (USGC) noted in its weekly market price update, "Barge CIF NOLA values are lower this week, giving back only some of last week's $13/mt gain. FOB Gulf values followed a similar pattern this week, dropping after last week's $8/mt gain. Netbacks for those with river access remain near two-year highs."

River conditions were expected to get messy once again starting Friday. American Commercial Barge Line noted that Upper Mississippi River Locks 16 (UM 457) and Lock 17 (UM 437) were expected to close on Friday, May 11, and were expected to remain closed until the middle of next week due to already high water issues. An additional 2 to 3 inches of rain was expected over the weekend, which could push the closure back to late next week. This would be a complete closure; major delays are expected to develop in both directions.

On the international front, USGC noted that exporters are reporting that prices remain firm in Asia. "Buyers are calling frequently, hoping for lower prices that simply aren't coming yet. Merchandisers suggest that eventually buyers will be forced to cover their position/needs, and hint that this will occur at higher prices. Prices for 40-foot containers CNF Southeast Asia are presently valued at $242.50/mt."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 5/10/2018 4/26/2018

Bartlett and Company, Kansas City, MO (816-753-6300)

Missouri Dry $180 $170 $10
Modified $90 $85 $5

CHS, Minneapolis, MN (800-769-1066)

Illinois Dry $180 $175 $5
Indiana Dry $175 $170 $5
Iowa Dry $175 $170 $5
Michigan Dry $175 $170 $5
Minnesota Dry $170 $160 $10
North Dakota Dry $170 $165 $5
New York Dry $175 $170 $5
South Dakota Dry $170 $160 $10

MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)

Kansas Dry $165 $163 $2

POET Nutrition, Sioux Falls, SD (888-327-8799)

Indiana Dry $175 $170 $5
Iowa Dry $165 $160 $5
Michigan Dry $180 $175 $5
Minnesota Dry $170 $165 $5
Missouri Dry $185 $180 $5
Ohio Dry $175 $170 $5
South Dakota Dry $165 $155 $10
` `
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $168 $168 $0
Wet $55 $55 $0
Illinois Dry $178 $175 $3
Nebraska Dry $168 $168 $0
Wet $55 $55 $0

U.S. Commodities, Minneapolis, MN (888-293-1640)

Illinois Dry $175 $175 $0
Indiana Dry $175 $175 $0
Iowa Dry $165 $160 $5
Michigan Dry $170 $170 $0
Minnesota Dry $170 $160 $10
Nebraska Dry $165 $170 -$5
New York Dry $180 $180 $0
North Dakota Dry $170 $170 $0
Ohio Dry $170 $170 $0
South Dakota Dry $165 $155 $10
Wisconsin Dry $170 $160 $10

Valero Energy Corp, San Antonio Texas

(210-345-3362) (210-345-3362)
Indiana Dry $178 $170 $8
Iowa Dry $170 $155 $15
Minnesota Dry $175 $160 $15
Nebraska Dry $170 $170 $0
Ohio Dry $180 $170 $10
South Dakota Dry $165 $165 $0
California $238 $235 $3

Western Milling, Goshen, California (559-302-1074)

California Dry $245 $234 $11

*Prices listed per ton.

Weekly Average $172 $167 $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 5/10/2018 $3.9475 $140.98
Soybean Meal 5/10/2018 $390.50
DDG Weekly Average Spot Price $172.00

DDG Value Relative to:

5/10 4/26
Corn 121.01% 121.14%
Soybean Meal 44.05% 44.04%

Cost Per Unit of Protein:

DDG $6.37 $6.19
Soybean Meal $8.22 $7.98

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/AG)

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Mary Kennedy

Mary Kennedy
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