Market Matters Blog

DTN Weekly DDG Average Price Down $6 Per Ton

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains average price was $6 lower at $128 per ton for the week ended April 26. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted took another hit this week, down $6 at $128 per ton for the week ended April 26, versus the prior week. In the past two weeks, the DTN average DDG price has dropped $11 per ton.

Spot DDG truck prices were lower with continued pressure coming from continued weakness in the corn market. In addition, plants have continued to show a rise in production, with the weekly EIA report showing ethanol production moved up to a 14-week high during the week ended April 19.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended April 26 was at 103.14%. The value of DDG relative to soybean meal was at 41.83%. The cost per unit of protein for DDG was $4.74, compared to the cost per unit of protein for soybean meal at $6.44.

In its weekly DDGS price report, the U.S. Grains Council noted that indications are down this week compared to last, especially for international container rates.

"40-foot containers to Southeast Asian destinations are down $8 per metric ton (mt), on average, while 40-foot containers to Japan saw the sharpest drop from this week to last and stand at $228/mt for May delivery. Merchandisers have reported increased interested and buying from South Korean and Vietnamese buyers, among others."

CIF barge rates in New Orleans fell $7/mt and FOB vessel U.S. Gulf indications were down $5 per metric ton for nearby delivery, to $198 per metric ton. River conditions have not improved this week and actually worsened, as more lock closures occurred between Lock 11 (UM Mile 583) and Lock 22 (UM Mile 301), while ongoing flood conditions have reduced tow sizes between Cairo and the Gulf by one-two strings (10-15 barges). The max tow size has been reduced from 40 barges to 25 or less per tow, noted ACBL.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 4/25/2019 4/18/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $137 $140 -$3
Wet $72 $75 -$3
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $130 $135 -$5
Wet $70 $75 -$5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $132 $137 -$5
Indiana Dry $130 $135 -$5
Iowa Dry $120 $125 -$5
Michigan Dry $130 $135 -$5
Minnesota Dry $120 $125 -$5
North Dakota Dry $120 $125 -$5
New York Dry $135 $140 -$5
South Dakota Dry $120 $125 -$5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $130 $130 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $135 $140 -$5
Iowa Dry $125 $130 -$5
Michigan Dry $125 $130 -$5
Minnesota Dry $130 $130 $0
Missouri Dry $145 $150 -$5
Ohio Dry $140 $140 $0
South Dakota Dry $140 $140 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $140 $140 $0
Wet $60 $60 $0
Illinois Dry $148 $148 $0
Nebraska Dry $140 $140 $0
Wet $60 $60 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $125 $130 -$5
Indiana Dry $120 $125 -$5
Iowa Dry $115 $125 -$10
Michigan Dry $120 $125 -$5
Minnesota Dry $120 $125 -$5
Nebraska Dry $115 $125 -$10
New York Dry $140 $150 -$10
North Dakota Dry $130 $140 -$10
Ohio Dry $133 $140 -$7
South Dakota Dry $125 $130 -$5
Wisconsin Dry $120 $130 -$10
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $120 $140 -$20
Iowa Dry $130 $135 -$5
Minnesota Dry $123 $130 -$7
Nebraska Dry $105 $135 -$30
Ohio Dry $135 $145 -$10
South Dakota Dry $135 $136 -$1
California Dry $180 $190 -$10
Western Milling, Goshen, California (559-302-1074)
SUBJECT California Dry $208 $208 $0
*Prices listed per ton.
Weekly Average $128 $134 -$6
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 4/25/2019 $3.4750 $124.11
Soybean Meal 4/25/2019 $306.00
DDG Weekly Average Spot Price $128.00
DDG Value Relative to: 4/25 4/18
Corn 103.14% 104.66%
Soybean Meal 41.83% 44.19%
Cost Per Unit of Protein:
DDG $4.74 $4.96
Soybean Meal $6.44 $6.38
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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