Market Matters Blog

Domestic DDG Average Price Steady

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains average price was unchanged at $142 per ton for the week ended March 28. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was unchanged at $142 per ton for the week ended March 28 versus the prior week. Spot DDG truck prices on average were mostly steady for the week, while rail market DDG prices were flat as logistics for both are still recovering from flooding in Nebraska, Iowa and Kansas.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended March 28 was at 106.31%. The value of DDG relative to soybean meal was at 46.33%. The cost per unit of protein for DDG was $5.26, compared to the cost per unit of protein for soybean meal at $6.45.

The U.S. Grains Council noted in its weekly update that export distillers dried grain with solubles (DDGS) prices were mostly flat to slightly down this week compared to last for all routes indicated in this report's DDGS price table. "After jumping up last week, U.S. rail markets fell back by $2/mt, on average, for April delivery. FOB vessel U.S. Gulf for April delivery was down $1/mt from last week to $220/mt; merchandisers report that logistics issues on the U.S. river system continue to complicate nearby delivery of product. Note that barge CIF NOLA prices fell the most among all indicated routes this week. Internationally, 40-foot containers to Southeast Asia (April delivery) were down $1/mt for April delivery, on average."

The rise of the Mississippi River in St. Paul, Minnesota, is adding to the already high water conditions in the mid-Mississippi all the way down to the Gulf. There are now seven locks closed in the mid-Mississippi and until all the flooding from the north washes downriver, they will likely not open until mid-April. On top of that, New Orleans and Baton Rouge Harbor areas continue to experience extreme congestion and backlogs.

"Over the last couple of weeks fog and rains have subsided which has provided some relief. However, water levels at flood stage still greatly hamper operations," said Tom Russell, Russell Marine Group. "Conditions are dangerous for personnel and vessel/barge operations. Some terminals and loading locations remain closed due to high water levels."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 3/28/2019 3/21/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $150 $160 -$10
Wet $80 $82 -$2
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 $145 $150 -$5
Indiana Dry $142 $145 -$3
Iowa Dry $135 $135 $0
Michigan Dry $145 $145 $0
Minnesota Dry $135 $140 -$5
North Dakota Dry $140 $145 -$5
New York Dry $150 $160 -$10
South Dakota Dry $140 $145 -$5
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 $132 $0
Iowa Dry $130 $130 $0
Michigan Dry $130 $130 $0
Minnesota Dry $130 $130 $0
Missouri Dry $150 $150 $0
Ohio Dry $140 $140 $0
South Dakota Dry $135 $135 $0
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 $140 $0
Iowa Dry $140 $140 $0
Michigan Dry $135 $135 $0
Minnesota Dry $135 $135 $0
Nebraska Dry $155 $155 $0
New York Dry $155 $155 $0
North Dakota Dry $155 $155 $0
Ohio Dry $145 $145 $0
South Dakota Dry $145 $145 $0
Wisconsin Dry $135 $135 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
subject Indiana Dry $150 $150 $0
subject Iowa Dry $135 $135 $0
subject Minnesota Dry $135 $135 $0
subject Nebraska Dry $150 $150 $0
subject Ohio Dry $155 $155 $0
subject South Dakota Dry $140 $140 $0
subject California Dry $217 $217 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $230 $228 $2
*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 3/28/2019 $3.7400 $133.57
Soybean Meal 3/28/2019 $306.50
DDG Weekly Average Spot Price $142.00
DDG Value Relative to: 3/28 3/21
Corn 106.31% 105.67%
Soybean Meal 46.33% 45.03%
Cost Per Unit of Protein:
DDG $5.26 $5.26
Soybean Meal $6.45 $6.64
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

(CZ)

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