Market Matters Blog
DTN Weekly Average DDG Price Stronger
OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly spot price from the 40 locations DTN contacted was $1 per ton higher on average, at $148, for the week ended March 5. One merchandiser told DTN supplies may get tight because there has been a pick-up in forward sales. The talk is getting stronger that China has been inquiring about buying U.S. DDGS (distiller's dried grains with solubles), which may become a reality in the next few months given the uptick in prices and the firm feel to the market.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended March 5 was 107.77%. The value of DDG relative to soybean meal was 49.27%. The cost per unit of protein for DDG was $5.48, compared to the cost per unit of protein for soybean meal at $6.32.
In its weekly DDGS export update, the U.S. Grains Council noted, "Barge CIF NOLA values are up $4/metric ton (mt) for March shipment and $2/mt for April while FOB Gulf offers are $1 to $2/mt higher across March, April and May. U.S. rail rates are up $1/mt. Values for 40-foot containers to Southeast Asia are sharply higher this week as export demand is picking up. Spot positions are $3/mt higher on average while April shipment values are $11/mt higher this week. The average price for containers to Southeast Asia hit $258/mt for March and $264/mt for April shipment."
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Export prices have been strengthening because of the continued high water conditions in the Lower Mississippi River stalling shipments to the Gulf, as well as the container shortages due to the coronavirus. Here is a link to my Monday story about the shortages faced by container shippers: https://www.dtnpf.com/… .
The U.S. Census Bureau said Friday that U.S. exports of DDGS totaled 976,688 mt in January, up from 767,682 mt in December and up 21% from a year ago. Mexico was the top destination in January, taking 17% U.S. exports and followed by South Korea, Indonesia and Turkey. For all of 2019, U.S. exports of DDGS were down 9% from a year ago.
* 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 | 3/5/2020 | 2/27/2020 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $165 | $164 | $1 | |
| Wet | $83 | $82 | $1 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri | Dry | $160 | $160 | $0 | |
| Wet | $83 | $83 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $157 | $155 | $2 | |
| Indiana | Dry | $152 | $150 | $2 | |
| Iowa | Dry | $145 | $142 | $3 | |
| Michigan | Dry | $150 | $148 | $2 | |
| Minnesota | Dry | $140 | $140 | $0 | |
| North Dakota | Dry | $135 | $132 | $3 | |
| New York | Dry | $165 | $165 | $0 | |
| South Dakota | Dry | $138 | $132 | $6 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $146 | $146 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $155 | $155 | $0 | |
| Iowa | Dry | $140 | $136 | $4 | |
| Michigan | Dry | $150 | $150 | $0 | |
| Minnesota | Dry | $140 | $136 | $4 | |
| Missouri | Dry | $155 | $155 | $0 | |
| Ohio | Dry | $160 | $160 | $0 | |
| South Dakota | Dry | $144 | $144 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $145 | $145 | $0 | |
| Wet | $50 | $50 | $0 | ||
| Illinois MARCH | Dry | $158 | $158 | $0 | |
| Nebraska | Dry | $145 | $145 | $0 | |
| Wet | $45 | $45 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $158 | $155 | $3 | |
| Indiana | Dry | $158 | $155 | $3 | |
| Iowa | Dry | $143 | $140 | $3 | |
| Michigan | Dry | $158 | $155 | $3 | |
| Minnesota | Dry | $143 | $140 | $3 | |
| Nebraska | Dry | $138 | $135 | $3 | |
| New York | Dry | $163 | $160 | $3 | |
| North Dakota | Dry | $148 | $145 | $3 | |
| Ohio | Dry | $163 | $160 | $3 | |
| South Dakota | Dry | $143 | $140 | $3 | |
| Wisconsin | Dry | $146 | $143 | $3 | |
| Valero Energy Corp, San Antonio Texas | |||||
| Indiana | Dry | $155 | $150 | $5 | |
| Iowa | Dry | $140 | $140 | $0 | |
| Minnesota | Dry | $135 | $135 | $0 | |
| Nebraska | Dry | $135 | $135 | $0 | |
| Ohio | Dry | $160 | $160 | $0 | |
| South Dakota | Dry | $140 | $140 | $0 | |
| California | Dry | $210 | $198 | $12 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $222 | $212 | $10 | |
| *Prices listed per ton. | |||||
| Weekly Average | $148 | $147 | $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 | 3/5/2020 | $3.8450 | $137.32 |
| Soybean Meal | 3/5/2020 | $300.40 | |
| DDG Weekly Average Spot Price | $148.00 | ||
| DDG Value Relative to: | 3/5 | 2/27 | |
| Corn | 107.77% | 112.92% | |
| Soybean Meal | 49.27% | 49.51% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.48 | $5.44 | |
| Soybean Meal | $6.32 | $6.25 | |
| 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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