Market Matters Blog
DDG Prices Higher
OMAHA (DTN) -- Distillers dried grains average spot prices from the 40 locations DTN contacted were $2 per ton higher, at $136 per ton for the week ended Nov. 8, versus one week ago. Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 8 was at 101.95%. The value of DDG relative to soybean meal was at 44.43%. The cost per unit of protein for DDG was $5.04, compared to the cost per unit of protein for soybean meal at $6.44.
In its weekly distillers dried grains with solubles (DDGS) price update, U.S. Grains Council noted, " The market continues to bump along with a lack of bullish or bearish news resulting in several weeks of generally steady prices. This week merchandisers reported sales to Indonesia and Vietnam for November and December delivery. September export numbers show continued strong demand from Southeast Asian markets -- especially Indonesia, Thailand and Vietnam.
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"Indications for November delivery of 40-foot containers to Southeast Asia are down slightly this week from last (-1$/MT on average) while containers to Taiwan fell $5/MT. At the U.S. Gulf, indications for November delivery were up for the second straight week; U.S. rail rates were up as well. Prices for January delivery are expected to increase due to higher domestic demand during the winter months."
The U.S. Census Bureau reported last week that U.S. exports of DDGS totaled 1,028,254 metric tons in September, also down from August, but up 15% from a year ago. U.S. DDGS continue to find broad interest with Mexico, Vietnam, and South Korea listed as the top three destinations in September. The first nine months of U.S. DDGS exports were up 10% in 2018 from a year ago.
ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
COMPANY | STATE | 11/8/2018 | 11/1/2018 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $150 | $145 | $5 | |
Modified | $78 | $75 | $3 | ||
Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
Missouri Subject | Dry | $145 | $145 | $0 | |
Wet | $75 | $75 | $0 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $145 | $145 | $0 | |
Indiana | Dry | $134 | $134 | $0 | |
Iowa | Dry | $130 | $130 | $0 | |
Michigan | Dry | $135 | $135 | $0 | |
Minnesota | Dry | $125 | $125 | $0 | |
North Dakota | Dry | $130 | $130 | $0 | |
New York | Dry | $145 | $145 | $0 | |
South Dakota | Dry | $125 | $125 | $0 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $143 | $143 | $0 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $138 | $132 | $6 | |
Iowa | Dry | $138 | $132 | $6 | |
Michigan | Dry | $137 | $132 | $5 | |
Minnesota | Dry | $135 | $133 | $2 | |
Missouri | Dry | $155 | $145 | $10 | |
Ohio | Dry | $138 | $137 | $1 | |
South Dakota | Dry | $137 | $131 | $6 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $144 | $144 | $0 | |
Wet | $55 | $55 | $0 | ||
Illinois | Dry | $145 | $145 | $0 | |
Nebraska | Dry | $144 | $144 | $0 | |
Wet | $55 | $55 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $135 | $130 | $5 | |
Indiana | Dry | $130 | $130 | $0 | |
Iowa | Dry | $130 | $125 | $5 | |
Michigan | Dry | $135 | $135 | $0 | |
Minnesota | Dry | $130 | $125 | $5 | |
Nebraska | Dry | $135 | $135 | $0 | |
New York | Dry | $140 | $140 | $0 | |
North Dakota | Dry | $140 | $140 | $0 | |
Ohio | Dry | $130 | $125 | $5 | |
South Dakota | Dry | $130 | $125 | $5 | |
Wisconsin | Dry | $130 | $130 | $0 | |
Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
Indiana | Dry | $140 | $140 | $0 | |
Iowa | Dry | $130 | $125 | $5 | |
Minnesota | Dry | $130 | $130 | $0 | |
Nebraska | Dry | $125 | $125 | $0 | |
Ohio | Dry | $140 | $140 | $0 | |
South Dakota | Dry | $125 | $125 | $0 | |
California | $192 | $187 | $5 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $195 | $195 | $0 | |
*Prices listed per ton. | |||||
Weekly Average | $136 | $134 | $2 | ||
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 | 11/8/2018 | $3.7350 | $133.39 |
Soybean Meal | 11/8/2018 | $306.10 | |
DDG Weekly Average Spot Price | $136.00 | ||
DDG Value Relative to: | 11/8 | 11/1 | |
Corn | 101.95% | 102.30% | |
Soybean Meal | 44.43% | 42.78% | |
Cost Per Unit of Protein: | |||
DDG | $5.04 | $4.96 | |
Soybean Meal | $6.44 | $6.60 | |
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
(BAS/ES)
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