Market Matters Blog
DDG Prices Weaker
OMAHA (DTN) -- The distillers dried grains (DDG) spot prices from the 40 locations DTN contacted were mixed, but on average were lower this week at $121 per ton for the week ended July 19, down $1 versus one week ago. Values have improved from recent weeks in some areas, thanks in part to a slight improvement in cash corn prices and a pick-up in export interest for U.S. DDGS.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended July 19 was at 96.46%, and the value of DDG relative to soybean meal was at 36.80%. The cost per unit of protein for DDG was $4.48, compared to the cost per unit of protein for soybean meal at $6.92. The DDG value to cash corn remains near the two-year average for this time frame. Even with soymeal values higher the past week and DDG prices lower, DDG is still a better value on a cost per unit of protein.
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In its weekly DDGS price update, the U.S. Grains Council (USGC) noted, "DDGS prices were mostly steady to down slightly this week. DDGS at the Gulf were unchanged from last week, while U.S. rail rates fell slightly. With prices stable, merchandisers are reporting buyer activity from Southeast Asian markets including Vietnam, Thailand, and the Philippines. Bangladeshi buyers are also reportedly active as container rates to that market fell to $267 per metric ton."
Recently released U.S. Census Bureau data showed U.S. DDGS exports in May were up 38% from a year ago, with Turkey, Mexico, South Korea, Vietnam and Thailand the top destinations. Year-to-date reported export volumes are slightly up from the same period last year, noted USGC.
ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
COMPANY | STATE | 7/19/2018 | 7/12/2018 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $135 | $130 | $5 | |
Modified | $67 | $65 | $2 | ||
Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
Missouri | Dry | $140 | $140 | $0 | |
Wet | $65 | $65 | $0 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $147 | $145 | $2 | |
Indiana | Dry | $138 | $138 | $0 | |
Iowa | Dry | $120 | $120 | $0 | |
Michigan | Dry | $130 | $130 | $0 | |
Minnesota | Dry | $110 | $110 | $0 | |
North Dakota | Dry | $110 | $110 | $0 | |
New York | Dry | $130 | $140 | -$10 | |
South Dakota | Dry | $110 | $110 | $0 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $118 | $120 | -$2 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $135 | $140 | -$5 | |
Iowa | Dry | $110 | $105 | $5 | |
Michigan | Dry | $135 | $140 | -$5 | |
Minnesota | Dry | $105 | $105 | $0 | |
Missouri | Dry | $140 | $140 | $0 | |
Ohio | Dry | $135 | $140 | -$5 | |
South Dakota | Dry | $100 | $100 | $0 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $118 | $118 | $0 | |
Wet | $35 | $35 | $0 | ||
Illinois | Dry | $150 | $150 | $0 | |
Nebraska | Dry | $118 | $118 | $0 | |
Wet | $35 | $35 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $135 | $135 | $0 | |
Indiana | Dry | $130 | $130 | $0 | |
Iowa | Dry | $115 | $115 | $0 | |
Michigan | Dry | $130 | $125 | $5 | |
Minnesota | Dry | $110 | $115 | -$5 | |
Nebraska | Dry | $105 | $110 | -$5 | |
New York | Dry | $135 | $135 | $0 | |
North Dakota | Dry | $110 | $110 | $0 | |
Ohio | Dry | $130 | $130 | $0 | |
South Dakota | Dry | $110 | $110 | $0 | |
Wisconsin | Dry | $130 | $130 | $0 | |
Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
Indiana | Dry | $133 | $133 | $0 | |
Iowa | Dry | $95 | $95 | $0 | |
Minnesota | Dry | $100 | $100 | $0 | |
Nebraska | Dry | $90 | $90 | $0 | |
Ohio | Dry | $140 | $140 | $0 | |
South Dakota | Dry | $105 | $105 | $0 | |
California | $184 | $184 | $0 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $199 | $205 | -$6 | |
*Prices listed per ton. | |||||
Weekly Average | $121 | $122 | -$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 | 7/19/2018 | $3.5125 | $125.45 |
Soybean Meal | 7/19/2018 | $328.80 | |
DDG Weekly Average Spot Price | $121.00 | ||
DDG Value Relative to: | 7/19 | 6/28 | |
Corn | 101.51% | 101.51% | |
Soybean Meal | 36.59% | 36.59% | |
Cost Per Unit of Protein: | |||
DDG | $4.48 | $4.52 | |
Soybean Meal | $6.92 | $7.02 | |
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
(AG)
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