Market Matters Blog
DTN Weekly Average DDG Price Higher
OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly average spot price from the 40 locations DTN contacted was up $3 on average, to $139 per ton, for the week ended Sept. 19. The higher cash corn price is giving support to DDG prices.
In addition, with the closing of another ethanol plant, DDG supplies are getting tight in some states. In the past week, Siouxland Energy Cooperative in Sioux Center, Iowa, idled production at its 90-million-gallon corn-ethanol plant, bringing the number of idled plants so far this year to more than 15. These closures and other slowdowns have also kept the DDG prices firm.
The Energy Information Administration reported on Wednesday that for the week ended Sept. 13, ethanol production was at 1.003 million barrels per day (bpd), a five-month low. Stocks were increased by 700,000 barrels (bbl) from an 11-week low to 23.2 million bbl. Some merchandisers noted that ethanol margins improved for the week due to shutdowns reducing the abundant supply of ethanol.
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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Sept. 19 was at 104.41%. The value of DDG relative to soybean meal was at 47.57%. The cost per unit of protein for DDG was $5.15, 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, "FOB Gulf DDGS prices are slightly ($3/mt) lower this week for October shipment while U.S. rail rates have increased $2/mt on average. Asking prices for 40-foot containers to Southeast Asia are up $4/mt to $239/mt following last week's active inquiries."
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | CURRENT | CHANGE | ||
| COMPANY | STATE | 9/19/2019 | 9/12/2019 | ||
| 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 | $142 | $140 | $2 | |
| Wet | $72 | $72 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $145 | $145 | $0 | |
| Indiana | Dry | $145 | $145 | $0 | |
| Iowa | Dry | $130 | $130 | $0 | |
| Michigan | Dry | $150 | $150 | $0 | |
| Minnesota | Dry | $130 | $130 | $0 | |
| North Dakota | Dry | $130 | $130 | $0 | |
| New York | Dry | $145 | $145 | $0 | |
| South Dakota | Dry | $125 | $125 | $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 | $155 | $150 | $5 | |
| Iowa | Dry | $145 | $135 | $10 | |
| Michigan | Dry | $135 | $135 | $0 | |
| Minnesota | Dry | $140 | $135 | $5 | |
| Missouri | Dry | $150 | $150 | $0 | |
| Ohio | Dry | $150 | $145 | $5 | |
| South Dakota | Dry | $145 | $140 | $5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $150 | $145 | $5 | |
| Wet | $60 | $55 | $5 | ||
| Illinois | Dry | $145 | $143 | $2 | |
| Nebraska | Dry | $145 | $140 | $5 | |
| Wet | $50 | $45 | $5 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $140 | $135 | $5 | |
| Indiana | Dry | $145 | $140 | $5 | |
| Iowa | Dry | $135 | $130 | $5 | |
| Michigan | Dry | $145 | $135 | $10 | |
| Minnesota | Dry | $130 | $125 | $5 | |
| Nebraska | Dry | $130 | $130 | $0 | |
| New York | Dry | $150 | $150 | $0 | |
| North Dakota | Dry | $135 | $135 | $0 | |
| Ohio | Dry | $150 | $145 | $5 | |
| South Dakota | Dry | $130 | $125 | $5 | |
| Wisconsin | Dry | $130 | $130 | $0 | |
| Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
| subject | Indiana | Dry | $136 | $136 | $0 |
| subject | Iowa | Dry | $125 | $125 | $0 |
| subject | Minnesota | Dry | $120 | $120 | $0 |
| subject | Nebraska | Dry | $135 | $135 | $0 |
| subject | Ohio | Dry | $140 | $140 | $0 |
| subject | South Dakota | Dry | $128 | $128 | $0 |
| subject | California | Dry | $195 | $195 | $0 |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $200 | $205 | -$5 | |
| *Prices listed per ton. | |||||
| Weekly Average | $139 | $136 | $3 | ||
| 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 | 9/19/2019 | $3.7275 | $133.13 |
| Soybean Meal | 9/19/2019 | $292.20 | |
| DDG Weekly Average Spot Price | $139.00 | ||
| DDG Value Relative to: | 9/5 | 9/5 | |
| Corn | 104.41% | 107.41% | |
| Soybean Meal | 47.57% | 45.93% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.15 | $5.04 | |
| Soybean Meal | $6.15 | $6.23 | |
| 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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