Market Matters Blog

DTN Weekly Average DDG Price Lower

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains price was down $5 on average at $135 per ton for the week ended Aug. 1. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was down $5, at $135 per ton, for the week ended Aug. 1.

DDG spot prices have come under pressure from the losses in the corn market the past 10 days and the weakness in soybean meal and other feedstuffs, in addition to a slowdown in summer demand.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Aug. 1 was at 96.24%. The value of DDG relative to soybean meal was at 46.04%. The cost per unit of protein for DDG was $5.00, compared to the cost per unit of protein for soybean meal at $6.17.

The midweek Energy Information Administration report noted that ethanol supply in the U.S. increased for a fifth straight week in the week ended July 26, up 779,000 barrels (bbl) to a 24.468-million-bbl record high, building despite another decline in domestic plant production that fell to the lowest level since late April.

In its weekly export DDGS update, the U.S. Grains Council stated, "Prices for DDGS CIF NOLA barge and FOB U.S. Gulf are lower this week as improving Mississippi River conditions have allowed once-trapped barges to move downriver to the Gulf. Merchandisers report that Gulf capacity is tight and that is keeping asking prices competitive. Exporters note that international demand is somewhat quieter this week and that the CBOT selloff in corn and soybean meal futures has influenced DDGS as well. FOB NOLA price indications were last quoted at $200 per metric ton (mt) while 40-foot containers CNF Southeast Asia were steady this week at $236/mt."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 7/25/2019 7/25/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $155 $155 $0
Wet $78 $78 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $140 $150 -$10
Wet $72 $78 -$6
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $140 $145 -$5
Indiana Dry $135 $140 -$5
Iowa Dry $125 $130 -$5
Michigan Dry $145 $150 -$5
Minnesota Dry $120 $125 -$5
North Dakota Dry $125 $130 -$5
New York Dry $145 $150 -$5
South Dakota Dry $120 $125 -$5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $135 $140 -$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $150 $155 -$5
Iowa Dry $125 $130 -$5
Michigan Dry $125 $130 -$5
Minnesota Dry $130 $135 -$5
Missouri Dry $150 $155 -$5
Ohio Dry $160 $165 -$5
South Dakota Dry $140 $145 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $135 $145 -$10
Wet $40 $40 $0
Illinois Dry $140 $145 -$5
Nebraska Dry $135 $145 -$10
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $135 $140 -$5
Indiana Dry $137 $142 -$5
Iowa Dry $130 $130 $0
Michigan Dry $135 $140 -$5
Minnesota Dry $125 $130 -$5
Nebraska Dry $130 $135 -$5
New York Dry $150 $150 $0
North Dakota Dry $130 $135 -$5
Ohio Dry $150 $150 $0
South Dakota Dry $125 $130 -$5
Wisconsin Dry $130 $135 -$5
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $130 $140 -$10
Iowa Dry $125 $135 -$10
Minnesota Dry $125 $135 -$10
Nebraska Dry $135 $135 $0
Ohio Dry $145 $150 -$5
South Dakota Dry $128 $130 -$2
California Dry $185 $195 -$10
Western Milling, Goshen, California (559-302-1074)
California Dry $198 $203 -$5
*Prices listed per ton.
Weekly Average $135 $140 -$5
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 8/1/2019 $3.9275 $140.27
Soybean Meal 8/1/2019 $293.20
DDG Weekly Average Spot Price $135.00
DDG Value Relative to: 8/1 7/25
Corn 96.24% 93.67%
Soybean Meal 46.04% 46.07%
Cost Per Unit of Protein:
DDG $5.00 $5.19
Soybean Meal $6.17 $6.40
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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