Market Matters Blog

Domestic DDG Average Price Weaker

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains average price was weaker at $140 per ton for the week ended April 4. (DTN file photo by Elaine Shein)

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.

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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