Market Matters Blog

DTN Weekly Average DDG Price Slightly Higher

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains weekly spot price was up $1 on average at $150 per ton for the week ended Jan. 23. (DTN file photo)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly spot price from the 40 locations DTN contacted was up $1 on average at $150 per ton for the week ended Jan. 23. Prices were slightly higher on average as cash corn prices moved higher this week.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 23 was at 106.68%. The value of DDG relative to soybean meal was at 50.18%. The cost per unit of protein for DDG was $5.56, compared to the cost per unit of protein for soybean meal at $6.29.

The Energy Information Administration reported Thursday morning that, for the week ended Jan. 17, domestic ethanol inventory continued to build in spite of producers cutting production more than 4% from a near-two-year high, while blending demand continued to rise.

In its weekly DDGS export update, the U.S. Grains Council noted, "DDGS markets are still quiet this week, but prices are firming across the board. Barge CIF NOLA values are $1-$2 per metric ton (mt) higher this week for spot positions while April delivery quotes are up $3/mt. U.S. rail rates are continuing to firm as well, up $2/mt this week. FOB NOLA offers are mostly steady with a relatively flat forward curve, while prices for 40-foot containers for Southeast Asia are up $1-$2/mt this week. The average quote for February containers to Southeast Asia is $249/mt."

Once again, high water is causing slowdowns for barges heading southbound to the Gulf. American Commercial Barge Line noted that, "Due to heightened river levels, southbound tows on the Lower Miss have been reduced by five to 10 loads. Expect these tow restrictions to remain in effect well into February basis current forecasts." In addition, ACBL notes that, because of high river levels, transit at Memphis, Vicksburg and Baton Rouge is restricted to daylight only.

* 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 1/23/2020 1/16/2020
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $166 $165 $1
Wet $83 $83 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Dry $160 $165 -$5
Wet $82 $80 $2
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $155 $155 $0
Indiana Dry $150 $150 $0
Iowa Dry $140 $140 $0
Michigan Dry $145 $145 $0
Minnesota Dry $140 $140 $0
North Dakota Dry $145 $145 $0
New York Dry $155 $155 $0
South Dakota Dry $140 $140 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $155 $155 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $155 $155 $0
Iowa Dry $138 $137 $1
Michigan Dry $150 $145 $5
Minnesota Dry $138 $135 $3
Missouri Dry $158 $155 $3
Ohio Dry $160 $155 $5
South Dakota Dry $158 $158 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $165 $165 $0
Wet $65 $65 $0
Illinois FEB Dry $164 $164 $0
Nebraska Dry $160 $160 $0
Wet $65 $65 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $155 $155 $0
Indiana Dry $155 $155 $0
Iowa Dry $140 $140 $0
Michigan Dry $150 $150 $0
Minnesota Dry $140 $140 $0
Nebraska Dry $145 $145 $0
New York Dry $160 $170 -$10
North Dakota Dry $150 $150 $0
Ohio Dry $160 $160 $0
South Dakota Dry $140 $140 $0
Wisconsin Dry $143 $140 $3
Valero Energy Corp, San Antonio Texas
Indiana Dry $150 $150 $0
Iowa Dry $140 $140 $0
Minnesota Dry $140 $140 $0
Nebraska Dry $145 $145 $0
Ohio Dry $160 $160 $0
South Dakota Dry $140 $140 $0
California Dry $204 $204 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $215 $215 $0
*Prices listed per ton.
Weekly Average $150 $149 $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 1/23/2020 $3.9375 $140.63
Soybean Meal 1/23/2020 $298.90
DDG Weekly Average Spot Price $150.00
DDG Value Relative to: 1/23 1/16
Corn 106.68% 111.10%
Soybean Meal 50.18% 49.57%
Cost Per Unit of Protein:
DDG $5.56 $5.52
Soybean Meal $6.29 $6.33
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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