Market Matters Blog
DDG Prices Move Higher
OMAHA (DTN) -- The distillers dried grains (DDG) spot prices from the 40 locations DTN contacted pushed higher in the past two weeks at $134 per ton for the week ended August. That's up $13 per ton versus the last update on July 19. Values have significantly improved with the strength in corn prices and a pickup 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 Aug. 2 was at 102.30%, and the value of DDG relative to soybean meal was at 40.26%. The cost per unit of protein for DDG was $4.96, compared to the cost per unit of protein for soybean meal at $7.01. The DDG ratio to cash corn value remains pretty much in line with its two-year average and DDG remains the better value over soymeal.
In its weekly DDGS price update, the U.S. Grains Council (USGC) noted, "DDGS prices were up across the board this week, jumping to $224 per metric ton (mt) for FOB U.S. Gulf August shipment. Containers to Southeast Asia saw double-digit increases, with merchandisers reporting brisk market activity and sales to Vietnam and Thailand. According to USDA FAS, Vietnam's animal feed demand in 2018-19 will be up 3% to 30.9 million metric tons (mmt) due to expanding pork and aquaculture production. DDGS consumption will make the biggest jump in consumption, rising 45% to 1 mmt. Reportedly, ocean container capacity is filling up rapidly in response to the market's activity."
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
| COMPANY | STATE | 8/2/2018 | 7/19/2018 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $155 | $135 | $20 | |
| Modified | $75 | $67 | $8 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri | Dry | $155 | $140 | $15 | |
| Wet | $80 | $65 | $15 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $156 | $147 | $9 | |
| Indiana | Dry | $148 | $138 | $10 | |
| Iowa | Dry | $135 | $120 | $15 | |
| Michigan | Dry | $144 | $130 | $14 | |
| Minnesota | Dry | $120 | $110 | $10 | |
| North Dakota | Dry | $120 | $110 | $10 | |
| New York | Dry | $142 | $130 | $12 | |
| South Dakota | Dry | $120 | $110 | $10 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $135 | $118 | $17 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $145 | $135 | $10 | |
| Iowa | Dry | $125 | $110 | $15 | |
| Michigan | Dry | $140 | $135 | $5 | |
| Minnesota | Dry | $125 | $105 | $20 | |
| Missouri | Dry | $150 | $140 | $10 | |
| Ohio | Dry | $145 | $135 | $10 | |
| South Dakota | Dry | $115 | $100 | $15 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $121 | $118 | $3 | |
| Wet | $35 | $35 | $0 | ||
| Illinois | Dry | $158 | $150 | $8 | |
| Nebraska | Dry | $121 | $118 | $3 | |
| Wet | $35 | $35 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $145 | $135 | $10 | |
| Indiana | Dry | $140 | $130 | $10 | |
| Iowa | Dry | $125 | $115 | $10 | |
| Michigan | Dry | $140 | $130 | $10 | |
| Minnesota | Dry | $125 | $110 | $15 | |
| Nebraska | Dry | $125 | $105 | $20 | |
| New York | Dry | $150 | $135 | $15 | |
| North Dakota | Dry | $120 | $110 | $10 | |
| Ohio | Dry | $145 | $130 | $15 | |
| South Dakota | Dry | $120 | $110 | $10 | |
| Wisconsin | Dry | $140 | $130 | $10 | |
| Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
| Indiana | Dry | $140 | $133 | $7 | |
| Iowa | Dry | $117 | $95 | $22 | |
| Minnesota | Dry | $115 | $100 | $15 | |
| Nebraska | Dry | $120 | $90 | $30 | |
| Ohio | Dry | $145 | $140 | $5 | |
| South Dakota | Dry | $115 | $105 | $10 | |
| California | $205 | $184 | $21 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $213 | $199 | $14 | |
| *Prices listed per ton. | |||||
| Weekly Average | $134 | $121 | $13 | ||
| 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 | 8/2/2018 | $3.6675 | $130.98 |
| Soybean Meal | 8/2/2018 | $332.80 | |
| DDG Weekly Average Spot Price | $134.00 | ||
| DDG Value Relative to: | 8/2 | 7/19 | |
| Corn | 102.30% | 101.51% | |
| Soybean Meal | 40.26% | 36.59% | |
| Cost Per Unit of Protein: | |||
| DDG | $4.96 | $4.48 | |
| Soybean Meal | $7.01 | $6.92 | |
| 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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