Market Matters Blog
DDG Prices Higher on Average
The DTN average dried distillers grains, or DDG, spot price was up $1 from two weeks ago, at $97, for the week ended May 25. Of the 39 locations from which DTN collects spot prices, eight bids were $3 to $8 higher, one bid was $4 lower, and the balance of the prices were unchanged.
The value of DDG relative to corn, based on those bids for the week ended May 25, was at 73.55%, and the value of DDG relative to soybean meal was at 31.83%. The cost per unit of protein for DDG was at $3.88, compared to the cost per unit of protein for soybean meal, at $6.41. The DDG relative price to corn and soybean meal futures continues to be lower and more competitive versus historical levels.
Merchandisers noted that prices in the Midwest have been firm on steady movement of supply. Prices have moved a little higher on some pre-holiday trading to ensure needs are covered before the Memorial Day weekend. Informa Economics reported that the holiday-shortened workweek next week could have some local price volatility, but given sufficient supply, prices are apt to remain range bound, absent a significant change in runtimes.
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CIF NOLA (New Orleans, Louisiana) dried distillers grains with solubles, or DDGS, prices for the week ended May 25 were at $131 to $136, and June prices were at $128 to $133. Traffic on the Mississippi River has been slowed again as high-water conditions still exist. Upper Mississippi from St. Louis to Cairo is above flood stage, and traffic is moving with safety protocols in place. Tow sizes have been reduced by five to 10 barges and restricted to daylight transit only. The Lower Mississippi River from Cairo to New Orleans is at or near flood stage and tow sizes are reduced, and in some areas are restricted to daylight transit only. The Mississippi River in Baton Rouge is expected to crest at its highest level in six years on May 30, hitting 41 feet. The last time the river crested at 41 feet or higher was in 2011 when it crested at 45 feet. Major flood stage is 40 feet. Both barge and ocean vessel traffic is moving, but safety protocols will be in place at least into June.
U.S. Grains Council (USGC) reported Thursday that despite market challenges, the latest U.S. Department of Agriculture (USDA) trade data show exports of U.S. distillers dried grains with solubles (DDGS) have remained steady due to attractive prices, available supply and market development efforts by the Council among a diversity of buyers. "From September 2016 to March 2017, USDA reported the United States exported 6.9 million metric tons of DDGS, a 6% increase year-over-year. This steady pace of exports occurred even with a dramatic drop in purchases from the largest player in the past few marketing years, China."
CURRENT | PREVIOUS | CHANGE | |||
COMPANY | STATE | 5/11/2017 | 5/11/2017 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $120 | $120 | $0 | |
Modified | $60 | $60 | $0 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $95 | $95 | $0 | |
Indiana | Dry | $95 | $95 | $0 | |
Iowa | Dry | $92 | $92 | $0 | |
Michigan | Dry | $90 | $90 | $0 | |
Minnesota | Dry | $90 | $90 | $0 | |
North Dakota | Dry | $90 | $90 | $0 | |
New York | Dry | $130 | $130 | $0 | |
South Dakota | Dry | $90 | $90 | $0 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $98 | $98 | $0 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $110 | $105 | $5 | |
Iowa | Dry | $98 | $98 | $0 | |
Michigan | Dry | $110 | $102 | $8 | |
Minnesota | Dry | $96 | $96 | $0 | |
Missouri | Dry | $112 | $112 | $0 | |
Ohio | Dry | $110 | $105 | $5 | |
South Dakota | Dry | $96 | $96 | $0 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $103 | $103 | $0 | |
Wet | $45 | $45 | $0 | ||
Illinois | Dry | $105 | $105 | $0 | |
Nebraska | Dry | $103 | $103 | $0 | |
Wet | $45 | $45 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $100 | $100 | $0 | |
Indiana | Dry | $90 | $90 | $0 | |
Iowa | Dry | $95 | $95 | $0 | |
Michigan | Dry | $95 | $95 | $0 | |
Minnesota | Dry | $85 | $85 | $0 | |
Nebraska | Dry | $99 | $95 | $4 | |
New York | Dry | $120 | $120 | $0 | |
North Dakota | Dry | $95 | $92 | $3 | |
Ohio | Dry | $94 | $98 | -$4 | |
South Dakota | Dry | $85 | $85 | $0 | |
Wisconsin | Dry | $95 | $90 | $5 | |
Valero Energy Corp., San Antonio, TX (402-932-5901) | |||||
Indiana | Dry | $95 | $90 | $5 | |
Iowa | Dry | $90 | $90 | $0 | |
Minnesota | Dry | $90 | $90 | $0 | |
Nebraska | Dry | $95 | $95 | $0 | |
Ohio | Dry | $100 | $95 | $5 | |
South Dakota | Dry | $80 | $80 | $0 | |
California | $160 | $152 | $8 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $168 | $166 | $2 | |
*Prices listed per ton. | |||||
Weekly Average | $97 | $96 | $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 | 5/25/2017 | $3.6925 | $131.88 |
Soybean Meal | 5/25/2017 | $304.70 | |
DDG Weekly Average Spot Price | $96.00 | ||
DDG Value Relative to: | 5/25 | 5/11 | |
Corn | 73.55% | 74.56% | |
Soybean Meal | 31.83% | 30.85% | |
Cost Per Unit of Protein: | |||
DDG | $3.88 | $3.84 | |
Soybean Meal | $6.41 | $6.65 | |
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 25. |
Mary Kennedy can be reached at mary.kennedy@dtn.com
Follow her on Twitter @MaryCKenn
(BAS/AG)
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