Market Matters Blog
DDG Prices Stronger
OMAHA (DTN) -- Distillers dried grains average spot prices from the 40 locations DTN contacted were $2 per ton higher, at $138 per ton for the week ended Nov. 15, 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. 15 was at 105.14%. The value of DDG relative to soybean meal was at 45.19%. The cost per unit of protein for DDG was $5.11, compared to the cost per unit of protein for soybean meal at $6.43. On a relative value, DDG prices are mostly in line with soymeal, but are slightly higher than normal basis corn values.
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The EIA reported Thursday that ethanol plant production decreased by a modest 1,000 barrels per day (bpd) to 1.067 million bpd, the first weekly decline in four weeks, during the week ended Nov. 9. Informa Economics noted that, "Ethanol plant output is expected to be flat to lower in the coming weeks. More plants could idle than previously thought, with margins being very low. Ethanol plants are trying to get a premium out of DDGs to make it worth running."
In its weekly distillers dried grains with solubles (DDGS) price update, U.S. Grains Council noted, "Prices were generally up this week as continued demand from Southeast Asian markets and increased demand for domestic feeding buoyed markets. Merchandisers reported sales to Vietnam as indications for December delivery of 40-foot containers to Southeast Asia are up 4$ per metric ton (mt) on average. At the U.S. Gulf, indications for December delivery were up for the third straight week to $204/mt. U.S. rail rates were up as well."
ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
COMPANY | STATE | 11/15/2018 | 11/8/2018 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $153 | $150 | $3 | |
Modified | $80 | $78 | $2 | ||
Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
Missouri Subject | Dry | $150 | $145 | $5 | |
Wet | $75 | $75 | $0 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $145 | $145 | $0 | |
Indiana | Dry | $135 | $134 | $1 | |
Iowa | Dry | $135 | $130 | $5 | |
Michigan | Dry | $140 | $135 | $5 | |
Minnesota | Dry | $130 | $125 | $5 | |
North Dakota | Dry | $135 | $130 | $5 | |
New York | Dry | $145 | $145 | $0 | |
South Dakota | Dry | $130 | $125 | $5 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $145 | $143 | $2 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $138 | $138 | $0 | |
Iowa | Dry | $148 | $138 | $10 | |
Michigan | Dry | $137 | $137 | $0 | |
Minnesota | Dry | $138 | $135 | $3 | |
Missouri | Dry | $158 | $155 | $3 | |
Ohio | Dry | $138 | $138 | $0 | |
South Dakota | Dry | $140 | $137 | $3 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $144 | $144 | $0 | |
Wet | $55 | $55 | $0 | ||
Illinois | Dry | $148 | $145 | $3 | |
Nebraska | Dry | $144 | $144 | $0 | |
Wet | $55 | $55 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $135 | $135 | $0 | |
Indiana | Dry | $135 | $130 | $5 | |
Iowa | Dry | $135 | $130 | $5 | |
Michigan | Dry | $135 | $135 | $0 | |
Minnesota | Dry | $130 | $130 | $0 | |
Nebraska | Dry | $145 | $135 | $10 | |
New York | Dry | $150 | $140 | $10 | |
North Dakota | Dry | $140 | $140 | $0 | |
Ohio | Dry | $135 | $130 | $5 | |
South Dakota | Dry | $135 | $130 | $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 | $130 | $0 | |
Minnesota | Dry | $130 | $130 | $0 | |
Nebraska | Dry | $125 | $125 | $0 | |
Ohio | Dry | $140 | $140 | $0 | |
South Dakota | Dry | $125 | $125 | $0 | |
California | $192 | $192 | $0 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $206 | $195 | $11 | |
*Prices listed per ton. | |||||
Weekly Average | $138 | $136 | $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 | 11/15/2018 | $3.6750 | $131.25 |
Soybean Meal | 11/15/2018 | $305.40 | |
DDG Weekly Average Spot Price | $138.00 | ||
DDG Value Relative to: | 11/16 | 11/8 | |
Corn | 105.14% | 101.95% | |
Soybean Meal | 45.19% | 44.43% | |
Cost Per Unit of Protein: | |||
DDG | $5.11 | $5.04 | |
Soybean Meal | $6.43 | $6.44 | |
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/CZ)
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