Market Matters Blog
DTN Weekly Average DDG Price Weaker
OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was down $1, at $134 per ton, for the week ended Aug. 8. We are hearing reports some ethanol plants are selling more DDG on a spot or prompt delivery basis with expectations that ethanol production may slow in the near future, which would affect DDG supplies.
The Energy Information Administration reported in its Aug. 8 "Today in Energy" brief that ethanol operating margins have recently fallen further as a result of sharp increases in corn prices. Iowa corn spot prices averaged about $4.20 per bushel in June, 15% higher than the previous month and the highest price since June 2016. "Corn prices have been driven up because significant flooding in the Midwest has delayed expected harvests and potentially lowered corn yields. Higher feedstock costs and relatively unchanged ethanol demand have driven ethanol margins and profitability to multiyear lows, and current ethanol production levels may soon be affected," noted the EIA.
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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Aug. 8 was at 91.29%. The value of DDG relative to soybean meal was at 45.45%. The cost per unit of protein for DDG was $4.96, compared to the cost per unit of protein for soybean meal at $6.21.
In its weekly export DDGS update, the U.S. Grains Council stated, "Prices are lower this week but exporters report that active inquiries from Southeast Asia, combined with expectations of slowing production, have created near-term outlooks for higher prices. Prices for DDGS CIF NOLA barge are $2.50 per metric ton (MT) higher this week while FOB Gulf values are slightly lower at $196/MT. Prices for 40-foot containers are $11/MT lower this week at $231/MT for August shipment, but increasing international interest has exporters defending offers."
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
| COMPANY | STATE | 8/8/2019 | 8/1/2019 | ||
| 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 | $135 | $140 | -$5 | |
| Wet | $70 | $72 | -$2 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $140 | $140 | $0 | |
| Indiana | Dry | $135 | $135 | $0 | |
| Iowa | Dry | $120 | $125 | -$5 | |
| Michigan | Dry | $145 | $145 | $0 | |
| Minnesota | Dry | $120 | $120 | $0 | |
| North Dakota | Dry | $125 | $125 | $0 | |
| New York | Dry | $140 | $145 | -$5 | |
| South Dakota | Dry | $120 | $120 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $135 | $135 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $145 | $150 | -$5 | |
| Iowa | Dry | $125 | $125 | $0 | |
| Michigan | Dry | $125 | $125 | $0 | |
| Minnesota | Dry | $125 | $130 | -$5 | |
| Missouri | Dry | $150 | $150 | $0 | |
| Ohio | Dry | $150 | $160 | -$10 | |
| South Dakota | Dry | $140 | $140 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $135 | $135 | $0 | |
| Wet | $40 | $40 | $0 | ||
| Illinois | Dry | $140 | $140 | $0 | |
| Nebraska | Dry | $135 | $135 | $0 | |
| Wet | $40 | $40 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $135 | $135 | $0 | |
| Indiana | Dry | $137 | $137 | $0 | |
| Iowa | Dry | $130 | $130 | $0 | |
| Michigan | Dry | $135 | $135 | $0 | |
| Minnesota | Dry | $125 | $125 | $0 | |
| Nebraska | Dry | $130 | $130 | $0 | |
| New York | Dry | $150 | $150 | $0 | |
| North Dakota | Dry | $130 | $130 | $0 | |
| Ohio | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $125 | $125 | $0 | |
| Wisconsin | Dry | $130 | $130 | $0 | |
| Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
| Indiana | Dry | $130 | $130 | $0 | |
| Iowa | Dry | $125 | $125 | $0 | |
| Minnesota | Dry | $125 | $125 | $0 | |
| Nebraska | Dry | $135 | $135 | $0 | |
| Ohio | Dry | $145 | $145 | $0 | |
| South Dakota | Dry | $128 | $128 | $0 | |
| California | Dry | $185 | $185 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $195 | $198 | -$3 | |
| *Prices listed per ton. | |||||
| Weekly Average | $134 | $135 | -$1 | ||
| 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 | 8/8/2019 | $4.1100 | $146.79 |
| Soybean Meal | 8/8/2019 | $294.80 | |
| DDG Weekly Average Spot Price | $134.00 | ||
| DDG Value Relative to: | 8/8 | 8/1 | |
| Corn | 91.29% | 96.24% | |
| Soybean Meal | 45.45% | 46.04% | |
| Cost Per Unit of Protein: | |||
| DDG | $4.96 | $5.00 | |
| Soybean Meal | $6.21 | $6.17 | |
| 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
(BAS/CZ)
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