Market Matters Blog
DTN Weekly Average DDG Price Firm
OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly average spot price from the 40 locations DTN contacted was steady at $143 per ton for the week ended Nov. 21. Prices were firm this week in spite of weaker corn futures not pulling prices down thanks to the strong corn basis.
Wednesday's Energy Information Administration ethanol report showed ethanol inventory in the U.S. was drawn down again last week, falling to the lowest stocks level in more than 2 1/2 years despite a decline in ethanol demand and higher output, with ethanol production up for an eighth week.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 21 was at 108.66%. The value of DDG relative to soybean meal was at 47.51%. The cost per unit of protein for DDG was $5.30, compared to the cost per unit of protein for soybean meal at $6.34. The DDG-to-soymeal price ratio continues to remain above the three-year average.
In its weekly export DDGS update, the U.S. Grains Council noted: "The U.S. DDGS market is mixed this week with merchandisers reporting active trade on Thursday. Barge CIF NOLA* and FOB* NOLA values are firmer (up $1-$3 per metric ton) versus last week while rail-delivered prices are $3/mt lower, on average. Some merchandisers report that the Canadian National Railway strike is affecting logistics and prices for some locations.
"Overseas buyers have been actively securing U.S. DDGS and prices are firmer for most destinations. Prices for DDGS shipped to Indonesia and South Korea are showing the strongest gains, up $5-$6/mt. The average price increase for product destined for Southeast Asia is up $2/mt this week to $240 for December shipment," said USGC.
* CIF (cost, insurance and freight paid by seller) NOLA (New Orleans)
* FOB (free on board means buyer pays costs of ocean freight, insurance, unloading, and transportation from originating port)
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
| COMPANY | STATE | 11/21/2019 | 11/14/2019 | ||
| 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 | $160 | $150 | $10 | |
| Wet | $80 | $77 | $3 | ||
| 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 | $150 | $150 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $140 | $150 | -$10 | |
| Iowa | Dry | $137 | $137 | $0 | |
| Michigan | Dry | $135 | $135 | $0 | |
| Minnesota | Dry | $137 | $135 | $2 | |
| Missouri | Dry | $155 | $155 | $0 | |
| Ohio | Dry | $145 | $150 | -$5 | |
| South Dakota | Dry | $145 | $145 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $150 | $150 | $0 | |
| Wet | $55 | $55 | $0 | ||
| Illinois | Dry | $153 | $153 | $0 | |
| Nebraska | Dry | $150 | $150 | $0 | |
| Wet | $60 | $60 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $145 | $145 | $0 | |
| Indiana | Dry | $145 | $145 | $0 | |
| Iowa | Dry | $145 | $145 | $0 | |
| Michigan | Dry | $140 | $140 | $0 | |
| Minnesota | Dry | $135 | $135 | $0 | |
| Nebraska | Dry | $150 | $150 | $0 | |
| New York | Dry | $165 | $165 | $0 | |
| North Dakota | Dry | $135 | $135 | $0 | |
| Ohio | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $135 | $135 | $0 | |
| Wisconsin | Dry | $135 | $135 | $0 | |
| Valero Energy Corp, San Antonio Texas | |||||
| Indiana | Dry | $150 | $150 | $0 | |
| Iowa | Dry | $135 | $135 | $0 | |
| Minnesota | Dry | $135 | $135 | $0 | |
| Nebraska | Dry | $145 | $145 | $0 | |
| Ohio | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $140 | $140 | $0 | |
| California | Dry | $208 | $208 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $214 | $211 | $3 | |
| *Prices listed per ton. | |||||
| Weekly Average | $143 | $143 | $0 | ||
| 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 | 11/21/2019 | $3.6850 | $131.61 |
| Soybean Meal | 11/21/2019 | $301.00 | |
| DDG Weekly Average Spot Price | $143.00 | ||
| DDG Value Relative to: | 11/21 | 11/14 | |
| Corn | 108.66% | 106.56% | |
| Soybean Meal | 47.51% | 47.18% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.30 | $5.30 | |
| Soybean Meal | $6.34 | $6.38 | |
| 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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