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.
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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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