Market Matters Blog
DDG Prices Steady to Weaker
OMAHA (DTN) -- The average distillers dried grain (DDG) spot price from the 39 locations DTN collected bids from was $147 for the week ended Feb. 8, 1 cent weaker on average than a week ago.
Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Feb. 8 was at 112.53%, and the value of DDG relative to soybean meal was at 43.02%. The cost per unit of protein for DDG was $5.44, compared to the cost per unit of protein for soybean meal at $7.19. DDG prices are still a good buy compared to soybean meal after meal futures' recent rally.
Domestic prices were mixed as the tight supplies we have witnessed since the start of the year have loosened some, according to merchandisers. Winter storms have slowed some movement, but overall, prices remain steady for the most part. However, as weather warms, that may change as demand could slow.
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The U.S. Grains Council (USGC) noted in its weekly price update that FOB NOLA DDGS are slightly lower this week at $203/mt, following CIF NOLA prices which dropped to $191/mt. Merchandisers are reporting that, since CIF NOLA values dropped last week, prices have softened for product destined for Asia. However, the lower prices have increased buying activity and exporters are reporting large volumes sold/exported.
The U.S. Census Bureau said Tuesday that U.S. exports of distillers grains totaled 968,700 metric tons in December, up 15% from a year ago. Mexico was the top export destination again in December, accounting for 21% of the total and followed by South Korea, Vietnam, and Thailand. For all of 2017, exports of U.S. distillers grains were down 2% from a year ago, their second annual decline. DTN Market Analyst Todd Hultman noted, "It was interesting that China came in eleventh in December with their largest shipment of distillers grains since May."
CURRENT | CURRENT | CHANGE | |||
COMPANY | STATE | 2/8/2018 | 2/1/2018 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $170 | $170 | $0 | |
Modified | $85 | $85 | $0 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $150 | $160 | -$10 | |
Indiana | Dry | $150 | $150 | $0 | |
Iowa | Dry | $145 | $140 | $5 | |
Michigan | Dry | $160 | $160 | $0 | |
Minnesota | Dry | $135 | $140 | -$5 | |
North Dakota | Dry | $148 | $150 | -$2 | |
New York | Dry | $165 | $170 | -$5 | |
South Dakota | Dry | $145 | $145 | $0 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $155 | $155 | $0 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $160 | $158 | $2 | |
Iowa | Dry | $138 | $138 | $0 | |
Michigan | Dry | $165 | $156 | $9 | |
Minnesota | Dry | $138 | $138 | $0 | |
Missouri | Dry | $160 | $158 | $2 | |
Ohio | Dry | $160 | $156 | $4 | |
South Dakota | Dry | $140 | $143 | -$3 | |
` | ` | ||||
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $150 | $150 | $0 | |
Wet | $50 | $60 | -$10 | ||
Illinois | Dry | $155 | $155 | $0 | |
Nebraska | Dry | $150 | $150 | $0 | |
Wet | $50 | $60 | -$10 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $145 | $150 | -$5 | |
Indiana | Dry | $145 | $145 | $0 | |
Iowa | Dry | $140 | $145 | -$5 | |
Michigan | Dry | $140 | $140 | $0 | |
Minnesota | Dry | $135 | $140 | -$5 | |
Nebraska | Dry | $150 | $155 | -$5 | |
New York | Dry | $165 | $165 | $0 | |
North Dakota | Dry | $150 | $155 | -$5 | |
Ohio | Dry | $150 | $150 | $0 | |
South Dakota | Dry | $140 | $140 | $0 | |
Wisconsin | Dry | $140 | $140 | $0 | |
Valero Energy Corp, San Antonio Texas | (210-345-3362) | ||||
Indiana | Dry | $145 | $145 | $0 | |
Iowa | Dry | $135 | $135 | $0 | |
Minnesota | Dry | $135 | $135 | $0 | |
Nebraska | Dry | $150 | $150 | $0 | |
Ohio | Dry | $145 | $145 | $0 | |
South Dakota | Dry | $128 | $128 | $0 | |
California | $197 | $208 | -$11 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $210 | $212 | -$2 | |
*Prices listed per ton. | |||||
Weekly Average | $147 | $148 | -$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 | 2/8/2018 | $3.6575 | $130.63 |
Soybean Meal | 2/8/2018 | $341.70 | |
DDG Weekly Average Spot Price | $147.00 | ||
DDG Value Relative to: | 2/8 | 2/1 | |
Corn | 112.53% | 115.32% | |
Soybean Meal | 43.02% | 44.61% | |
Cost Per Unit of Protein: | |||
DDG | $5.44 | $5.52 | |
Soybean Meal | $7.19 | $7.03 | |
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)
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