Market Matters Blog

DTN Weekly DDG Average Price Higher

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains average price was $2 higher at $123 per ton for the week ended May 23. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was up $2 per ton on average this week versus the prior week, at $123 per ton for the week ended May 23. The DTN National Corn Index was 19 cents higher since the last price update, giving support to the DDG market.

Feed traders are keeping a close eye on grain prices, as corn and soymeal prices have been moving higher on delayed planting concerns. If grain prices continue to rally, that could provide some spillover support for DDG and all feed ingredient markets.

EIA Wednesday reported a third straight weekly increase in ethanol plant production, with output up 20,000 barrels per day (bpd) on the week to 1.071 million bpd, the highest level of 2019. According to the data, the last time output breached 1.070 million bpd was the final week of August 2018.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended May 23 was at 88.36% and is below the five-year average. The value of DDG relative to soybean meal was at 41.39%. The cost per unit of protein for DDG was $4.56, compared to the cost per unit of protein for soybean meal at $6.26.

In their weekly update, U.S. Grains Council noted that DDGS indications were mixed this week. "Merchandisers report that international buyers are waiting for prices to settle after recent volatility, with close attention being paid to corn and soybean meal futures. Indications for 40-foot containers to Southeast Asia are unchanged from last week, on average, with Indonesia seeing a drop and Malaysia seeing an increase. Domestically, FOB vessel Gulf indications for the nearby are up this week to $201 per metric ton; U.S. rail rates are up as well."

It will once again be hard to move containers to the Gulf after Coast Guard closed the Mississippi River at St. Louis on May 23 from mile marker 179 to mile marker 184 when the river rose above 38 feet. The river was at 39.26 on May 24 and is expected to crest at 42 feet, 2 feet above major flood stage, by May 28. There are eight locks closed on the UMR: 17, 20, 21, 22, 24, 25, Mel Price and 27. On top of that, the USACE St. Paul District said they have three dredging crews working to clear the sediment caused by flooding in some of the channels above Lock and Dam 11, with another two starting May 24, to enable tows to get to the Port of St. Paul once water levels decrease and locks reopen further downstream.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 5/23/2019 5/16/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $130 $130 $0
Wet $68 $68 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $135 $130 $5
Wet $63 $60 $3
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $130 $130 $0
Indiana Dry $130 $130 $0
Iowa Dry $115 $115 $0
Michigan Dry $135 $135 $0
Minnesota Dry $110 $115 -$5
North Dakota Dry $120 $120 $0
New York Dry $145 $145 $0
South Dakota Dry $100 $110 -$10
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $120 $120 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $125 $125 $0
Iowa Dry $125 $125 $0
Michigan Dry $120 $120 $0
Minnesota Dry $125 $125 $0
Missouri Dry $130 $130 $0
Ohio Dry $135 $130 $5
South Dakota Dry $135 $125 $10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $120 $115 $5
Wet $45 $45 $0
Illinois Dry $135 $131 $4
Nebraska Dry $120 $115 $5
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $120 $120 $0
Indiana Dry $120 $120 $0
Iowa Dry $120 $115 $5
Michigan Dry $120 $120 $0
Minnesota Dry $115 $110 $5
Nebraska Dry $118 $110 $8
New York Dry $140 $140 $0
North Dakota Dry $130 $120 $10
Ohio Dry $130 $130 $0
South Dakota Dry $115 $110 $5
Wisconsin Dry $115 $115 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $125 $120 $5
Iowa Dry $115 $115 $0
Minnesota Dry $110 $105 $5
Nebraska Dry $115 $110 $5
Ohio Dry $140 $135 $5
South Dakota Dry $120 $120 $0
California Dry $180 $177 $3
Western Milling, Goshen, California (559-302-1074)
California Dry $190 $190 $0
*Prices listed per ton.
Weekly Average $123 $121 $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 5/23/2019 $3.8975 $139.20
Soybean Meal 5/23/2019 $297.20
DDG Weekly Average Spot Price $123.00
DDG Value Relative to: 5/23 5/16
Corn 88.36% 89.39%
Soybean Meal 41.39% 40.08%
Cost Per Unit of Protein:
DDG $4.56 $4.48
Soybean Meal $6.26 $6.36
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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