DTN DDG Weekly Update

DDG Prices Lower

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
Connect with Mary:
DTN's average weekly spot price for domestic distillers dried grains was lower at $132 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- Distillers dried grains spot prices from the 40 locations DTN contacted were mixed, but on average were $2 per ton lower versus one week ago at $132 per ton for the week ended Sept. 13.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Sept. 13 was at 109.91%. The value of DDG relative to soybean meal was at 42.40%. The cost per unit of protein for DDG was $4.89, compared to the cost per unit of protein for soybean meal at $6.55.

DDG and all corn byproduct feed prices came under pressure Wednesday after the December corn futures lost 14 cents in the front month thanks to USDA predicting a record crop, way above market expectations. DDG supplies are still in good shape even after a slowdown in ethanol production last week. EIA said plant production slid 67,000 bpd to 1.020 million bpd during the week ended Sept. 7, 2.6% lower than the corresponding week in 2017.

In its weekly DDGS price update, the U.S. Grains Council noted, "DDGS prices were generally down across the board; FOB Gulf indications fell $3/mt while container rates to Southeast Asia fell $4/mt on average. Prices fell for 40-foot containers to Vietnam (-$5/mt), Thailand (-$3/mt) and Indonesia (-$3/mt); in turn, merchandisers report a flurry of buying activity in those markets. Finally, USDA reported that exports of U.S. DDGS are up 2.2% year-over-year in 2017/2018 to 10.5 mmt."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 9/13/2018 9/6/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $145 $155 -$10
Modified $75 $78 -$3
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Dry $140 $150 -$10
Wet $75 $83 -$8
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $142 $145 -$3
Indiana Dry $135 $140 -$5
Iowa Dry $135 $135 $0
Michigan Dry $142 $140 $2
Minnesota Dry $130 $125 $5
North Dakota Dry $125 $125 $0
New York Dry $162 $160 $2
South Dakota Dry $125 $125 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $140 $145 -$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $136 $134 $2
Iowa Dry $135 $135 $0
Michigan Dry $142 $138 $4
Minnesota Dry $132 $130 $2
Missouri Dry $151 $151 $0
Ohio Dry $144 $142 $2
South Dakota Dry $135 $135 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $130 $135 -$5
Wet $40 $45 -$5
Illinois Dry $147 $150 -$3
Nebraska Dry $130 $135 -$5
Wet $40 $45 -$5
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $130 $130 $0
Indiana Dry $127 $127 $0
Iowa Dry $125 $125 $0
Michigan Dry $130 $130 $0
Minnesota Dry $120 $120 $0
Nebraska Dry $135 $135 $0
New York Dry $140 $140 $0
North Dakota Dry $130 $130 $0
Ohio Dry $130 $130 $0
South Dakota Dry $120 $120 $0
Wisconsin Dry $130 $130 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $125 $130 -$5
Iowa Dry $115 $120 -$5
Minnesota Dry $120 $125 -$5
Nebraska Dry $135 $140 -$5
Ohio Dry $135 $140 -$5
South Dakota Dry $120 $125 -$5
California $185 $190 -$5
Western Milling, Goshen, California (559-302-1074)
California Dry $200 $205 -$5
*Prices listed per ton.
Weekly Average $132 $134 -$2
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 9/13/2018 $3.3625 $120.09
Soybean Meal 9/13/2018 $311.30
DDG Weekly Average Spot Price $132.00
DDG Value Relative to: 9/13 9/6
Corn 109.91% 106.14%
Soybean Meal 42.40% 43.09%
Cost Per Unit of Protein:
DDG $4.89 $4.96
Soybean Meal $6.55 $6.55
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

(CZ)

Mary Kennedy

Mary Kennedy
Connect with Mary: