Market Matters Blog

DTN Weekly Average DDG Price Weaker

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains price was down $1 on average to $134 per ton for the week ended Aug. 8. (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 $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.

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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