Market Matters Blog

DTN Weekly DDG Average Price Remains Steady

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
Connect with Mary:
The DTN domestic distillers dried grains average price was steady at $141 per ton for the week ended July 11. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was unchanged at $141 per ton for the week ended July 11. DDG prices were mixed this week as lower seasonal demand has come into play for prices and feeders also have other competing feeds to choose from.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended July 11 was at 88.17%. The value of DDG relative to soybean meal was at 45.25%. The cost per unit of protein for DDG was $5.22, compared to the cost per unit of protein for soybean meal at $6.56.

The midweek Energy Information Administration report noted ethanol plant production dropped 3.1% to a five-week low. However, there was a roughly 200,000-barrel (bbl) build in ethanol stocks, pushing total supply to 23 million bbl, a six-week high during the week ended July 5. Margins remain tight at many plants due in part to the continued rise in the cash corn basis, especially in the Eastern Corn Belt.

In its weekly export DDGS update, the U.S. Grains Council stated, "Barge CIF NOLA values are slightly lower while DDGS indications for FOB vessel Gulf are down $6 per metric ton (mt) for nearby delivery while deferred shipment months are down only $3/mt. Indications for 40-foot containers to Southeast Asia are up $2/mt this week."

River conditions in the Lower Mississippi River (LMR), and especially the Gulf, are worsening, with the Gulf shut down ahead of Tropical Storm Barry that could potentially become a Category 1 hurricane over the weekend. Southwest Pass (a channel at the mouth of the Mississippi River that empties into the Gulf of Mexico) shut down Wednesday afternoon, and vessels that were heading to the Gulf will wait for the storm to move through.

The Mississippi River at New Orleans is expected to spike to 19 feet Saturday should there be a storm surge. With expected rainfall of up to 2 feet falling in New Orleans and into the Lower Mississippi and Tennessee Valley, we may see the LMR close to barge traffic temporarily until the water recedes.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 7/11/2019 6/27/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $155 $155 $0
Wet $80 $80 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $150 $150 $0
Wet $77 $77 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $147 $150 -$3
Indiana Dry $142 $145 -$3
Iowa Dry $132 $135 -$3
Michigan Dry $142 $145 -$3
Minnesota Dry $132 $135 -$3
North Dakota Dry $132 $135 -$3
New York Dry $152 $155 -$3
South Dakota Dry $132 $135 -$3
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $140 $140 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $165 $170 -$5
Iowa Dry $135 $135 $0
Michigan Dry $140 $140 $0
Minnesota Dry $135 $140 -$5
Missouri Dry $165 $165 $0
Ohio Dry $165 $170 -$5
South Dakota Dry $150 $150 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $145 $120 $25
Wet $40 $45 -$5
Illinois Dry $145 $148 -$3
Nebraska Dry $145 $120 $25
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $140 $140 $0
Indiana Dry $140 $140 $0
Iowa Dry $135 $135 $0
Michigan Dry $135 $135 $0
Minnesota Dry $130 $130 $0
Nebraska Dry $130 $130 $0
New York Dry $150 $150 $0
North Dakota Dry $140 $140 $0
Ohio Dry $150 $150 $0
South Dakota Dry $130 $130 $0
Wisconsin Dry $135 $135 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $140 $140 $0
Iowa Dry $135 $135 $0
Minnesota Dry $135 $135 $0
Nebraska Dry $135 $135 $0
Ohio Dry $150 $150 $0
South Dakota Dry $130 $130 $0
California Dry $195 $200 -$5
Western Milling, Goshen, California (559-302-1074)
California Dry $205 $214 -$9
*Prices listed per ton.
Weekly Average $141 $141 $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 7/11/2019 $4.4775 $159.91
Soybean Meal 7/11/2019 $311.60
DDG Weekly Average Spot Price $141.00
DDG Value Relative to: 7/11 6/27
Corn 88.17% 89.73%
Soybean Meal 45.25% 45.16%
Cost Per Unit of Protein:
DDG $5.22 $5.22
Soybean Meal $6.56 $6.57
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 .