Market Matters Blog

DTN Weekly DDG Average Price Steady

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
Connect with Mary:
The DTN domestic distillers dried grains average price was steady at $121 per ton for the week ended May 16. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was steady on average this week versus the prior week, at $121 per ton for the week ended May 16. Prices were mixed and the strength in the corn market at the end of the week was supportive.

DDG prices may find pressure if the corn market reverses lower as ethanol plant production continues to rise while demand slows. However, with delays in corn planting continuing as heavy rain falls on already soaked fields in Midwest over the next seven days, it is unlikely corn prices will fade.

The EIA said Wednesday that during the week ended May 10, ethanol plant production ramped up 15,000 barrels per day (bpd), or 1.4%, to 1.0151 million bpd, the fourth highest weekly output rate in 2019, while 7,000 bpd less than a year ago.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended May 16 was at 89.39% and is below the five-year average. The value of DDG relative to soybean meal was at 40.08%. The cost per unit of protein for DDG was $4.48, compared to the cost per unit of protein for soybean meal at $6.36.

The flooding along the Mississippi River has been plaguing sellers who ship DDGS for export on the river down to the Gulf. The St. Louis Harbor opened on May 16, along with most of the locks above there that had been closed because of flooding. The USACE in St. Paul has noted shoaling is creating problems above mile 615, closing parts of the river to be dredged. The Lower Mississippi River in to the Gulf is still in flood stage, and expectations are this will continue in to June, as more rain this weekend will add to the high water.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 5/16/2019 5/9/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $130 $130 $0
Wet $68 $70 -$2
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $130 $130 $0
Wet $60 $60 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $130 $125 $5
Indiana Dry $130 $125 $5
Iowa Dry $115 $110 $5
Michigan Dry $135 $130 $5
Minnesota Dry $115 $110 $5
North Dakota Dry $120 $115 $5
New York Dry $145 $140 $5
South Dakota Dry $110 $105 $5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $120 $115 $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $125 $130 -$5
Iowa Dry $125 $120 $5
Michigan Dry $120 $125 -$5
Minnesota Dry $125 $125 $0
Missouri Dry $130 $125 $5
Ohio Dry $130 $130 $0
South Dakota Dry $125 $125 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $115 $125 -$10
Wet $45 $55 -$10
Illinois Dry $131 $135 -$4
Nebraska Dry $115 $125 -$10
Wet $45 $55 -$10
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $120 $120 $0
Indiana Dry $120 $120 $0
Iowa Dry $115 $115 $0
Michigan Dry $120 $120 $0
Minnesota Dry $110 $110 $0
Nebraska Dry $110 $110 $0
New York Dry $140 $140 $0
North Dakota Dry $120 $120 $0
Ohio Dry $130 $130 $0
South Dakota Dry $110 $110 $0
Wisconsin Dry $115 $115 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $120 $125 -$5
Iowa Dry $115 $120 -$5
Minnesota Dry $105 $110 -$5
Nebraska Dry $110 $110 $0
Ohio Dry $135 $135 $0
South Dakota Dry $120 $125 -$5
California Dry $177 $175 $2
Western Milling, Goshen, California (559-302-1074)
California Dry $190 $190 $0
*Prices listed per ton.
Weekly Average $121 $121 $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 5/16/2019 $3.7900 $135.36
Soybean Meal 5/16/2019 $301.90
DDG Weekly Average Spot Price $121.00
DDG Value Relative to: 5/16 5/9
Corn 89.39% 98.34%
Soybean Meal 40.08% 42.41%
Cost Per Unit of Protein:
DDG $4.48 $4.48
Soybean Meal $6.36 $6.01
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)

Comments

To comment, please Log In or Join our Community .