Market Matters Blog

DTN Weekly DDG Average Price Sharply Higher

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains average price was $10 higher at $133 per ton for the week ended May 30. (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 $10 per ton on average this week versus the prior week, at $133 per ton for the week ended May 30. The DTN National Corn Index was 23 cents higher since the last price update, giving support to the DDG market.

Ethanol supply in the U.S. reversed lower in the week ended May 24 following the first build in nearly a month, while plant production reversed down from the highest level of 2019, according to data released midmorning Thursday by the Energy Information Administration.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended May 30 was at 85.36% and is below the five-year average. The value of DDG relative to soybean meal was at 40.62%. The cost per unit of protein for DDG was $4.93, compared to the cost per unit of protein for soybean meal at $6.89.

In their weekly update, U.S. Grains Council noted that DDGS indications were mixed this week. "DDGS indications for FOB vessel Gulf are higher this week ($215 per metric ton), driven by rising grain prices. Bids for product delivered to Asian markets are below offers as buyers wait to determine the longevity of the recent commodity rally. Exporters are defending offers as U.S. commodities are competitive on the world market. Otherwise, DDGS indications were up across the board. Indications for 40-foot containers to Southeast Asia are up $4/mt, on average, with Malaysia seeing the largest jump from last week's figure."

It is still a mess on the U.S. river system with no barges moving in the Upper Mississippi River above St. Louis because the harbor there is still closed. There are 15 locks closed between Lock and Dam 12-27, including Mel Price Lock and the Louisiana Bridge at mile 282. The latest prediction is that those areas will likely remain closed through June 11 and the St. Louis Harbor could be closed at least until June 15.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 5/30/2019 5/23/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $140 $130 $10
Wet $72 $68 $4
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $135 $135 $0
Wet $65 $63 $2
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $145 $130 $15
Indiana Dry $140 $130 $10
Iowa Dry $130 $115 $15
Michigan Dry $145 $135 $10
Minnesota Dry $125 $110 $15
North Dakota Dry $130 $120 $10
New York Dry $155 $145 $10
South Dakota Dry $115 $100 $15
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $130 $120 $10
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $140 $125 $15
Iowa Dry $135 $125 $10
Michigan Dry $130 $120 $10
Minnesota Dry $135 $125 $10
Missouri Dry $140 $130 $10
Ohio Dry $145 $135 $10
South Dakota Dry $145 $130 $15
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $120 $120 $0
Wet $45 $45 $0
Illinois Dry $135 $135 $0
Nebraska Dry $120 $120 $0
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $130 $120 $10
Indiana Dry $135 $120 $15
Iowa Dry $130 $120 $10
Michigan Dry $130 $120 $10
Minnesota Dry $125 $115 $10
Nebraska Dry $125 $118 $7
New York Dry $145 $140 $5
North Dakota Dry $140 $130 $10
Ohio Dry $145 $130 $15
South Dakota Dry $125 $115 $10
Wisconsin Dry $120 $115 $5
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $140 $125 $15
Iowa Dry $125 $115 $10
Minnesota Dry $120 $110 $10
Nebraska Dry $135 $115 $20
Ohio Dry $150 $140 $10
South Dakota Dry $130 $120 $10
California Dry $205 $180 $25
Western Milling, Goshen, California (559-302-1074)
California Dry $205 $193 $12
*Prices listed per ton.
Weekly Average $133 $123 $10
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 5/30/2019 $4.3625 $155.80
Soybean Meal 5/30/2019 $327.40
DDG Weekly Average Spot Price $133.00
DDG Value Relative to: 5/30 5/23
Corn 85.36% 88.36%
Soybean Meal 40.62% 41.39%
Cost Per Unit of Protein:
DDG $4.93 $4.56
Soybean Meal $6.89 $6.26
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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