Market Matters Blog

DDG Weekly Update

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains average price was firm at $142 per ton for the week ended March 21. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was firm at $142 per ton for the week ended March 21 versus the prior week. Seasonal maintenance downtimes have started for many plants, but some prices in the Midwest, where snow and flooding has caused serious logistic problems, were higher.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended March 21 was at 105.67%. The value of DDG relative to soybean meal was at 45.03%. The cost per unit of protein for DDG was $5.26, compared to the cost per unit of protein for soybean meal at $6.64.

The U.S. Grains Council noted in its weekly update, that export distillers dried grain with solubles (DDGS) prices increased this week compared to last week.

"Western U.S. rail markets (rail delivered Pacific Northwest) jumped by $7 per metric ton (mt) to $225/mt for April delivery. FOB vessel U.S. Gulf for April delivery was up $4/mt from last week to $221/mt. Heavy snow followed by rain -- and then more snow -- has resulted in widespread flooding in the U.S. Western Corn Belt and Midwest, hampering product movement by rail and river. Overall challenging logistics are expected to weigh on the market for the near-term. Internationally, 40-foot containers to Southeast Asia (April delivery) were up $3/mt for April delivery, on average."

The Mississippi River continues to be in flood stage and conditions are not expected to improve as the river in St. Paul, Minnesota, is expected to rise above major flood stage late next week. The current lock closures from Lock 16 down to Lock 22 may be extended past the end of March as that water from St. Paul moves downriver. The Gulf is still a mess as high water there continues to hamper barge unloading and vessel loadings.

"Strong currents have made conditions dangerous for ships, tugs and barges. In the last three weeks, numerous breakaways have occurred. Three tugs have been sunk by currents, and sadly the latest caused the loss of a life," said Tom Russell, Russell Marine Group.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 3/21/2019 3/14/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $160 $160 $0
Wet $82 $82 $0
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 $132 $138 -$6
Iowa Dry $130 $135 -$5
Michigan Dry $130 $130 $0
Minnesota Dry $130 $135 -$5
Missouri Dry $150 $155 -$5
Ohio Dry $140 $140 $0
South Dakota Dry $135 $142 -$7
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 $140 $138 $2
Iowa Dry $140 $135 $5
Michigan Dry $135 $130 $5
Minnesota Dry $135 $130 $5
Nebraska Dry $155 $135 $20
New York Dry $155 $155 $0
North Dakota Dry $155 $155 $0
Ohio Dry $145 $145 $0
South Dakota Dry $145 $140 $5
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 $150 $135 $15
Ohio Dry $155 $155 $0
South Dakota Dry $140 $140 $0
California $217 $209 $8
Western Milling, Goshen, California (559-302-1074)
California Dry $228 $217 $11
*Prices listed per ton.
Weekly Average $142 $142 $0
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 3/21/2019 $3.7625 $134.38
Soybean Meal 3/21/2019 $315.30
DDG Weekly Average Spot Price $142.00
DDG Value Relative to: 3/21 3/14
Corn 105.67% 109.98%
Soybean Meal 45.03% 47.05%
Cost Per Unit of Protein:
DDG $5.26 $5.26
Soybean Meal $6.64 $6.35
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/AG)

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