Market Matters Blog
DTN Weekly Average DDG Price Stronger
OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly average spot price from the 40 locations DTN contacted was up $5 at $150 per ton for the week ended Dec. 19. Prices jumped higher as buyers have been securing their December needs ahead of the holidays, causing some locations to be short on spot product.
The Energy Information Administration noted in their weekly supply report that ethanol supply in the U.S. was unchanged at 21.8 million barrels (bbl) for the week ended Dec. 13, according to data released Wednesday morning. Blending demand was up a sharp 6.3% on the week while plant production eased.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Dec. 19 was at 108.67%. The value of DDG relative to soybean meal was at 50.27%. The cost per unit of protein for DDG was $5.56, compared to the cost per unit of protein for soybean meal at $6.28.
In its weekly export DDGS update, the U.S. Grains Council noted, "The U.S. DDGS market is mixed this week with Barge CIF NOLA and FOB Gulf values firmer while rail-delivered rates are down $2 per metric ton (mt). Merchandisers are reporting the forward curve for DDGS has flattened versus last week. FOB NOLA offers average $216/mt for January shipment while the average price for 40-foot containers to Southeast Asia stands at $246/mt. Buyers in Indonesia and the Philippines remain active, with offers for containerized shipments to those countries up $2-$3/mt this week."
Containers trying to make their way to the Gulf are experiencing slowdowns along the way. The St. Louis harbor was closed for a few days this past week after a barge fleet broke away during a winter storm. American Commercial Barge Line noted Dec. 19 that tow sizes are reduced on the Lower Mississippi River with southbound tows cut back by a string of barges (five) due to high river levels.
* 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 | 12/19/2019 | 12/12/2019 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $165 | $162 | $3 | |
| Wet | $83 | $81 | $2 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri | Dry | $165 | $165 | $0 | |
| Wet | $80 | $80 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $145 | $135 | $10 | |
| Indiana | Dry | $150 | $140 | $10 | |
| Iowa | Dry | $140 | $135 | $5 | |
| Michigan | Dry | $150 | $150 | $0 | |
| Minnesota | Dry | $140 | $135 | $5 | |
| North Dakota | Dry | $145 | $135 | $10 | |
| New York | Dry | $155 | $155 | $0 | |
| South Dakota | Dry | $140 | $125 | $15 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $160 | $160 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $155 | $150 | $5 | |
| Iowa | Dry | $142 | $142 | $0 | |
| Michigan | Dry | $145 | $135 | $10 | |
| Minnesota | Dry | $140 | $140 | $0 | |
| Missouri | Dry | $160 | $160 | $0 | |
| Ohio | Dry | $155 | $150 | $5 | |
| South Dakota | Dry | $152 | $150 | $2 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $165 | $150 | $15 | |
| Wet | $65 | $55 | $10 | ||
| Illinois/FEB | Dry | $155 | $153 | $2 | |
| Nebraska | Dry | $160 | $150 | $10 | |
| Wet | $65 | $60 | $5 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $155 | $150 | $5 | |
| Indiana | Dry | $155 | $150 | $5 | |
| Iowa | Dry | $145 | $140 | $5 | |
| Michigan | Dry | $150 | $145 | $5 | |
| Minnesota | Dry | $140 | $135 | $5 | |
| Nebraska | Dry | $165 | $160 | $5 | |
| New York | Dry | $170 | $165 | $5 | |
| North Dakota | Dry | $150 | $145 | $5 | |
| Ohio | Dry | $160 | $155 | $5 | |
| South Dakota | Dry | $140 | $135 | $5 | |
| Wisconsin | Dry | $140 | $135 | $5 | |
| 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 | $155 | $155 | $0 | |
| South Dakota | Dry | $140 | $140 | $0 | |
| California | Dry | $208 | $208 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $218 | $215 | $3 | |
| *Prices listed per ton. | |||||
| Weekly Average | $150 | $145 | $5 | ||
| 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 | 12/19/2019 | $3.8650 | $138.04 |
| Soybean Meal | 12/19/2019 | $298.40 | |
| DDG Weekly Average Spot Price | $150.00 | ||
| DDG Value Relative to: | 12/19 | 12/12 | |
| Corn | 108.67% | 110.85% | |
| Soybean Meal | 50.27% | 49.06% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.56 | $5.37 | |
| Soybean Meal | $6.28 | $6.22 | |
| 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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