Market Matters Blog
Domestic DDG Average Price Weaker
OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was down 2 cents at $140 per ton for the week ended April 4, versus the prior week. Spot DDG truck prices, on average, were lower for the week following the hefty losses in the corn market after the bearish USDA Prospective Plantings and Quarterly Grain Stocks report on March 29.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended April 4 was at 107.32%. The value of DDG relative to soybean meal was at 44.89%. The cost per unit of protein for DDG was $5.19, compared to the cost per unit of protein for soybean meal at $6.57.
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The U.S. Grains Council noted in its weekly update that export distillers dried grain with solubles (DDGS): "DDGS indications for U.S. rail rates, including rates to Mexico and Canada, fell this week from last week. CIF barge rates in New Orleans fell as well (-$6 per metric ton) and FOB vessel U.S. Gulf indications were down for both the nearby and deferred month(s) delivery. FOB vessel U.S. Gulf for May was down $6/mt to $212/mt for May delivery, for example. Internationally, 40-foot containers to Southeast Asia were up slight for nearby delivery and mixed going into May/June. Indications for Bangladesh and Myanmar are up $4/mt, on average."
All commerce is stopped in the middle Upper Mississippi River with at least 15 locks closed or closing between Lock and Dam 3 and Lock and Dam 25. Expectations are that some of these locks will not reopen until after April 17. Floodwaters and ice chunks continue to flush downriver, creating safety concerns. Until these locks reopen, there will be no barges heading up or downriver through those areas.
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
| COMPANY | STATE | 4/4/2019 | 3/28/2019 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $153 | $155 | -$2 | |
| Wet | $78 | $80 | -$2 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri Subject | Dry | $145 | $155 | -$10 | |
| Wet | $85 | $85 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $143 | $145 | -$2 | |
| Indiana | Dry | $140 | $142 | -$2 | |
| Iowa | Dry | $135 | $135 | $0 | |
| Michigan | Dry | $140 | $145 | -$5 | |
| Minnesota | Dry | $130 | $135 | -$5 | |
| North Dakota | Dry | $130 | $140 | -$10 | |
| New York | Dry | $145 | $150 | -$5 | |
| South Dakota | Dry | $130 | $140 | -$10 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $145 | $145 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $145 | $132 | $13 | |
| Iowa | Dry | $135 | $130 | $5 | |
| Michigan | Dry | $130 | $130 | $0 | |
| Minnesota | Dry | $130 | $130 | $0 | |
| Missouri | Dry | $150 | $150 | $0 | |
| Ohio | Dry | $140 | $140 | $0 | |
| South Dakota | Dry | $140 | $135 | $5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $140 | $140 | $0 | |
| Wet | $60 | $60 | $0 | ||
| Illinois | Dry | $148 | $150 | -$2 | |
| Nebraska | Dry | $140 | $140 | $0 | |
| Wet | $60 | $60 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $135 | $137 | -$2 | |
| Indiana | Dry | $135 | $140 | -$5 | |
| Iowa | Dry | $135 | $140 | -$5 | |
| Michigan | Dry | $130 | $135 | -$5 | |
| Minnesota | Dry | $130 | $135 | -$5 | |
| Nebraska | Dry | $150 | $155 | -$5 | |
| New York | Dry | $155 | $155 | $0 | |
| North Dakota | Dry | $150 | $155 | -$5 | |
| 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) | |||
| Indiana | Dry | $140 | $150 | -$10 | |
| Iowa | Dry | $140 | $135 | $5 | |
| Minnesota | Dry | $130 | $135 | -$5 | |
| Nebraska | Dry | $150 | $150 | $0 | |
| Ohio | Dry | $145 | $155 | -$10 | |
| South Dakota | Dry | $140 | $140 | $0 | |
| California | Dry | $205 | $217 | -$12 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $230 | $230 | $0 | |
| *Prices listed per ton. | |||||
| Weekly Average | $140 | $142 | -$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 | 4/4/2019 | $3.6525 | $130.45 |
| Soybean Meal | 4/4/2019 | $311.90 | |
| DDG Weekly Average Spot Price | $140.00 | ||
| DDG Value Relative to: | 4/4 | 3/28 | |
| Corn | 107.32% | 106.31% | |
| Soybean Meal | 44.89% | 46.33% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.19 | $5.26 | |
| Soybean Meal | $6.57 | $6.45 | |
| 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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