Market Matters Blog
DTN Weekly Average DDG Price Slightly Higher
OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly average spot price from the 40 locations DTN contacted was slightly higher at $141 per ton for the week ended Nov. 7.
Prices are mixed from various sellers again this week, but the weakness in the cash corn price due to lower futures this past week is starting to put some pressure on prices. As the cold weather season has come earlier this year, feeders will be coming to the market for more product and DDG prices will need to remain competitive.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 7 was at 105.21%. The value of DDG relative to soybean meal was at 46.13%. The cost per unit of protein for DDG was $5.22, compared to the cost per unit of protein for soybean meal at $6.43.
In its weekly export DDGS update, the U.S. Grains Council noted: "Following last week's gains barge CIF (cost, insurance and freight paid by seller) NOLA (New Orleans, Louisiana) prices and FOB (free on board means buyer pays costs of ocean freight, insurance, unloading, and transportation from originating port) Gulf offers were slightly lower. Other quoted routes, including U.S. rail rates, are unchanged. Merchandisers report that inquiries and bids from Southeast Asia are continuing to firm but the bid/ask spread remains wide. The average prices for 40-foot containers to Southeast Asia is up $1 per metric ton (mt) to $240 per mt after increases were noted for shipments to Malaysia and Vietnam."
The U.S. Census Bureau reported this past week that U.S. exports of DDGS totaled 1,045,775 mt in September, down from 1,117,501 mt in August, but up 2% from a year ago. Mexico was the top destination in September, taking 13% U.S. exports, followed by Vietnam, Turkey, South Korea and Japan. In the first nine months of 2019, U.S. exports of distillers grains are down 6% versus one year ago.
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
| COMPANY | STATE | 11/7/2019 | 10/31/2019 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $153 | $153 | $0 | |
| Wet | $77 | $77 | $0 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri Subject | Dry | $150 | $150 | $0 | |
| Wet | $77 | $77 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $135 | $135 | $0 | |
| Indiana | Dry | $140 | $140 | $0 | |
| Iowa | Dry | $135 | $135 | $0 | |
| Michigan | Dry | $150 | $150 | $0 | |
| Minnesota | Dry | $135 | $135 | $0 | |
| North Dakota | Dry | $135 | $135 | $0 | |
| New York | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $125 | $125 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $148 | $148 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $150 | $145 | $5 | |
| Iowa | Dry | $137 | $140 | -$3 | |
| Michigan | Dry | $135 | $135 | $0 | |
| Minnesota | Dry | $135 | $137 | -$2 | |
| Missouri | Dry | $155 | $148 | $7 | |
| Ohio | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $145 | $148 | -$3 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $142 | $142 | $0 | |
| Wet | $55 | $55 | $0 | ||
| Illinois | Dry | $150 | $147 | $3 | |
| Nebraska | Dry | $142 | $135 | $7 | |
| Wet | $45 | $45 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $140 | $140 | $0 | |
| Indiana | Dry | $140 | $140 | $0 | |
| Iowa | Dry | $135 | $135 | $0 | |
| Michigan | Dry | $145 | $145 | $0 | |
| Minnesota | Dry | $135 | $135 | $0 | |
| Nebraska | Dry | $140 | $140 | $0 | |
| New York | Dry | $165 | $165 | $0 | |
| North Dakota | Dry | $135 | $135 | $0 | |
| Ohio | Dry | $145 | $145 | $0 | |
| South Dakota | Dry | $135 | $135 | $0 | |
| Wisconsin | Dry | $135 | $135 | $0 | |
| Valero Energy Corp, San Antonio Texas | |||||
| Indiana | Dry | $135 | $135 | $0 | |
| Iowa | Dry | $145 | $145 | $0 | |
| Minnesota | Dry | $140 | $140 | $0 | |
| Nebraska | Dry | $135 | $135 | $0 | |
| Ohio | Dry | $145 | $145 | $0 | |
| South Dakota | Dry | $135 | $135 | $0 | |
| California | Dry | $205 | $205 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $211 | $211 | $0 | |
| *Prices listed per ton. | |||||
| Weekly Average | $141 | $140 | $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 | 11/7/2019 | $3.7525 | $134.02 |
| Soybean Meal | 11/7/2019 | $305.60 | |
| DDG Weekly Average Spot Price | $141.00 | ||
| DDG Value Relative to: | 11/7 | 10/31 | |
| Corn | 105.21% | 100.51% | |
| Soybean Meal | 46.13% | 45.99% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.22 | $5.19 | |
| Soybean Meal | $6.43 | $6.41 | |
| 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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