Market Matters Blog
Domestic DDG Average Price Slightly Higher
OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was steady to 1 cent higher at $142 per ton for the week ended March 7 versus the prior week. Prices have been flat recently, on average, and for the month of February. The DTN average price was steady at $141 per ton.
Spot truck values collected by DTN are slightly higher on average, with another increase noted in California prices. Weekly Class 1 railroad service updates sent to the Surface Transportation Board show that most rail carriers who serve California have a backlog of cars to deliver because of the continued rain causing ongoing flooding there in the past few weeks, hampering rail movement.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended March 7 was at 111.69%. The value of DDG relative to soybean meal was at 47.02%. The cost per unit of protein for DDG was $5.26, compared to the cost per unit of protein for soybean meal at $6.36.
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In its weekly DDGS update, the U.S. Grains Council noted that FOB vessel U.S. Gulf for April delivery is at $227 per metric ton (down slightly from the prior week). "The industry expects another month of challenging logistics on the Mississippi river system as a result of weather. U.S. rail rates were unchanged for nearby delivery. Internationally, 40-foot containers to Southeast Asia (March delivery) were down $2 per metric ton (mt) for April delivery, on average."
The U.S. Census Bureau reported on March 6 that U.S. exports of DDGS totaled 890,491 mt in December, down from 1,016,544 mt in November and down 9% from a year ago. U.S. DDGS continue to find broad interest with Mexico, Vietnam, Indonesia, Thailand and South Korea listed as the top five destinations. 2018 ended with exports of U.S. DDGS up 8% from a year ago.
ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
COMPANY | STATE | 3/7/2019 | 2/28/2019 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $160 | $150 | $10 | |
Wet | $82 | $78 | $4 | ||
Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
Missouri Subject | Dry | $155 | $155 | $0 | |
Wet | $85 | $85 | $0 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $150 | $150 | $0 | |
Indiana | Dry | $145 | $145 | $0 | |
Iowa | Dry | $135 | $135 | $0 | |
Michigan | Dry | $145 | $145 | $0 | |
Minnesota | Dry | $140 | $140 | $0 | |
North Dakota | Dry | $145 | $145 | $0 | |
New York | Dry | $160 | $160 | $0 | |
South Dakota | Dry | $145 | $145 | $0 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $145 | $145 | $0 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $135 | $135 | $0 | |
Iowa | Dry | $135 | $135 | $0 | |
Michigan | Dry | $130 | $130 | $0 | |
Minnesota | Dry | $135 | $134 | $1 | |
Missouri | Dry | $155 | $155 | $0 | |
Ohio | Dry | $140 | $143 | -$3 | |
South Dakota | Dry | $142 | $145 | -$3 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $140 | $140 | $0 | |
Wet | $60 | $60 | $0 | ||
Illinois | Dry | $150 | $150 | $0 | |
Nebraska | Dry | $140 | $140 | $0 | |
Wet | $60 | $60 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $137 | $137 | $0 | |
Indiana | Dry | $138 | $138 | $0 | |
Iowa | Dry | $135 | $135 | $0 | |
Michigan | Dry | $130 | $130 | $0 | |
Minnesota | Dry | $130 | $130 | $0 | |
Nebraska | Dry | $135 | $135 | $0 | |
New York | Dry | $155 | $155 | $0 | |
North Dakota | Dry | $155 | $155 | $0 | |
Ohio | Dry | $145 | $145 | $0 | |
South Dakota | Dry | $140 | $140 | $0 | |
Wisconsin | Dry | $135 | $135 | $0 | |
Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
Indiana | Dry | $150 | $150 | $0 | |
Iowa | Dry | $135 | $135 | $0 | |
Minnesota | Dry | $135 | $135 | $0 | |
Nebraska | Dry | $135 | $135 | $0 | |
Ohio | Dry | $155 | $155 | $0 | |
South Dakota | Dry | $140 | $140 | $0 | |
California | $209 | $204 | $5 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $218 | $214 | $4 | |
*Prices listed per ton. | |||||
Weekly Average | $142 | $141 | $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 | 3/7/2019 | $3.5600 | $127.14 |
Soybean Meal | 3/7/2019 | $302.00 | |
DDG Weekly Average Spot Price | $142.00 | ||
DDG Value Relative to: | 3/7 | 2/28 | |
Corn | 111.69% | 109.06% | |
Soybean Meal | 47.02% | 46.64% | |
Cost Per Unit of Protein: | |||
DDG | $5.26 | $5.22 | |
Soybean Meal | $6.36 | $6.36 | |
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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