Market Matters Blog

DTN Weekly DDG Average Price Steady

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains average price was unchanged at $133 per ton for the week ended June 6. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted remained firm this week versus the prior week, at $133 per ton for the week ended June 6.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended June 6 was at 88.56% and is below the five-year average. The value of DDG relative to soybean meal was at 42.10%. The cost per unit of protein for DDG was $4.93, compared to the cost per unit of protein for soybean meal at $6.65.

Ethanol supply in the U.S. was slightly lower in the week ended May 31, while production and blending demand fell to the lowest level in nearly a month, according the Wednesday, June 5, Energy Information Administration report. EIA reported ethanol plant production fell 13,000 barrel per day (bpd) to 1.044 million bpd, the lowest level since the week ended May 3.

In its weekly update, the U.S. Grains Council noted that DDGS indications were higher this week. "DDGS indications for FOB vessel Gulf are higher this week ($218 per metric ton for July delivery) as buyers wait for corn and soybean futures to settle. Merchandisers report that the bid-offer spread is aligning and expect Asian buyers to reenter the market soon. Otherwise, DDGS indications were mostly up. Indications for 40-foot containers to Southeast Asia increased $9/mt, on average, with Myanmar seeing the largest jump from last week's figure."

The U.S. Census Bureau said Thursday U.S. exports of DDGS totaled 917,836 mt in April, down from 956,828 mt in March and down 8% from a year ago. Mexico was the top destination in April, taking 20% of U.S. exports, followed by South Korea, Vietnam, Thailand and Canada. In the first four months of 2019, U.S. exports of DDGS were down 7% from a year ago.

It is still difficult for transport downriver to the Gulf, as flooding the past three months has delayed or stopped barges from getting there. The Upper Mississippi River is closed above St. Louis with nearly all the locks closed, along with the USACE St. Paul District with continued dredging above Lock and Dam 11. In addition, the St. Louis Harbor remains closed as the river continues to rise there, with June 17 being the soonest opening predicted. The Lower Mississippi River below St. Louis is open, but flooding continues in the Gulf with up to another 6 inches of rain expected there in the next few days.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 6/6/2019 5/30/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $142 $140 $2
Wet $74 $72 $2
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $135 $135 $0
Wet $65 $65 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $145 $145 $0
Indiana Dry $140 $140 $0
Iowa Dry $130 $130 $0
Michigan Dry $145 $145 $0
Minnesota Dry $125 $125 $0
North Dakota Dry $130 $130 $0
New York Dry $155 $155 $0
South Dakota Dry $115 $115 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $135 $130 $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $140 $140 $0
Iowa Dry $135 $135 $0
Michigan Dry $130 $130 $0
Minnesota Dry $135 $135 $0
Missouri Dry $140 $140 $0
Ohio Dry $150 $145 $5
South Dakota Dry $145 $145 $0
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 $130 $0
Indiana Dry $135 $135 $0
Iowa Dry $130 $130 $0
Michigan Dry $130 $130 $0
Minnesota Dry $125 $125 $0
Nebraska Dry $125 $125 $0
New York Dry $145 $145 $0
North Dakota Dry $140 $140 $0
Ohio Dry $145 $145 $0
South Dakota Dry $125 $125 $0
Wisconsin Dry $120 $120 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $140 $140 $0
Iowa Dry $125 $125 $0
Minnesota Dry $125 $120 $5
Nebraska Dry $135 $135 $0
Ohio Dry $150 $150 $0
South Dakota Dry $130 $130 $0
California Dry $205 $205 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $205 $205 $0
*Prices listed per ton.
Weekly Average $133 $133 $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 6/6/2019 $4.2050 $150.18
Soybean Meal 6/6/2019 $315.90
DDG Weekly Average Spot Price $133.00
DDG Value Relative to: 6/6 5/30
Corn 88.56% 85.36%
Soybean Meal 42.10% 40.62%
Cost Per Unit of Protein:
DDG $4.93 $4.93
Soybean Meal $6.65 $6.89
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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