Market Matters Blog
DTN Weekly Average DDG Price Strengthens
OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly average spot price from the 40 locations DTN contacted was up $2 on average, at $133 per ton, for the week ended Aug. 29. Prices continue to move higher as slowdowns and another plant closure are making supplies tight in some states. Feed buyers are inquiring about deferred prices, but some traders remain cautious due to the possibility of even more shutdowns and slowing production that could cut back DDG output further.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Aug. 29 was at 103.52% versus the three-year average of 106%. The value of DDG relative to soybean meal was at 45.55%. The cost per unit of protein for DDG was $4.93, compared to the cost per unit of protein for soybean meal at $6.15.
In its weekly export DDGS update, the U.S. Grains Council stated, "Merchandisers report that trade has been light this week with international buyers having largely filled near-term needs. FOB NOLA offers for September shipments are higher at $203/mt amid expectations that U.S. supplies will tighten this fall. Prices for 40-foot containers CIF Southeast Asia are $1/mt higher this week at $232/mt."
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
| COMPANY | STATE | 8/29/2019 | 8/22/2019 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $140 | $145 | -$5 | |
| Wet | $70 | $73 | -$3 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri Subject | Dry | $140 | $135 | $5 | |
| Wet | $72 | $70 | $2 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Subject | Illinois | Dry | $135 | $135 | $0 |
| Subject | Indiana | Dry | $135 | $135 | $0 |
| Subject | Iowa | Dry | $120 | $120 | $0 |
| Subject | Michigan | Dry | $140 | $140 | $0 |
| Subject | Minnesota | Dry | $120 | $120 | $0 |
| Subject | North Dakota | Dry | $120 | $120 | $0 |
| Subject | New York | Dry | $135 | $135 | $0 |
| Subject | 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 | $135 | $5 | |
| Iowa | Dry | $135 | $130 | $5 | |
| Michigan | Dry | $125 | $120 | $5 | |
| Minnesota | Dry | $130 | $130 | $0 | |
| Missouri | Dry | $150 | $145 | $5 | |
| Ohio | Dry | $140 | $135 | $5 | |
| South Dakota | Dry | $135 | $125 | $10 | |
| 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 | $140 | $135 | $5 | |
| Iowa | Dry | $125 | $125 | $0 | |
| Michigan | Dry | $135 | $130 | $5 | |
| Minnesota | Dry | $125 | $120 | $5 | |
| Nebraska | Dry | $130 | $130 | $0 | |
| New York | Dry | $150 | $150 | $0 | |
| North Dakota | Dry | $135 | $135 | $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 | $136 | $130 | $6 | |
| Iowa | Dry | $125 | $125 | $0 | |
| Minnesota | Dry | $120 | $120 | $0 | |
| Nebraska | Dry | $135 | $135 | $0 | |
| Ohio | Dry | $140 | $135 | $5 | |
| South Dakota | Dry | $128 | $128 | $0 | |
| California | Dry | $195 | $183 | $12 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| SUBJECT | California | Dry | $195 | $188 | $7 |
| *Prices listed per ton. | |||||
| Weekly Average | $133 | $131 | $2 | ||
| 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 | 8/29/2019 | $3.5975 | $128.48 |
| Soybean Meal | 8/29/2019 | $292.00 | |
| DDG Weekly Average Spot Price | $133.00 | ||
| DDG Value Relative to: | 8/29 | 8/22 | |
| Corn | 103.52% | 100.97% | |
| Soybean Meal | 45.55% | 44.60% | |
| Cost Per Unit of Protein: | |||
| DDG | $4.93 | $4.85 | |
| Soybean Meal | $6.15 | $6.18 | |
| 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
(CZ)
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