Market Matters Blog

DTN Weekly DDG Offers Slim

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN domestic distillers dried grains weekly spot prices of available offers were higher for the week ended April 2. (DTN file photo)

OMAHA (DTN) -- Many of the plants DTN contacted for DDG prices for the week ended April 2 showed no offers, but some did post prices. One plant that posted prices told DTN supplies were very limited and another said some plants that have slowed or stalled production are looking to buy out of existing contracts because they don't have enough product. Feeders have had to move away from all forms of DDG in their rations and have turned to corn, soymeal, corn gluten feed or other substitutes.

Wednesday's Energy Information Administration ethanol report showed blending demand fell over 30% to the lowest level on record for the last week of March, while plant production dropped for a fourth week, falling more than 15% to the lowest level since late September 2013. The data also shows domestic ethanol inventories soared to a record high.

Plant operators cut production 16.4% to 840,000 barrels per day (bpd) during the week ended March 27, down 16% versus the same time one year ago and the lowest level since the week ended Sept. 20, 2013, at 832,000 bpd. Thus, DDG supplies have become extremely tight.

In its weekly update, the U.S. Grains Council noted DDG is priced at 160% of cash corn values, up from last week and above the three-year average of 106%. "The DDGS/cash corn ratio is at its highest level since 2016. The DDGS/soymeal price ratio is 0.56, up from the prior week and above the three-year average of 0.42."

In the export market, USGC noted, "Merchandisers report ongoing short-covering in the DDGS CIF market for April and that while demand is strong heading into April, logistics are tightening quickly. Industry sources report that some April sales have been rolled back to May to accommodate this. FOB NOLA offers are up $7/mt this week for April shipment and up $15/mt for May. U.S. rail rates are slightly lower while prices for 40-foot DDGS containers to Southeast Asia are up $1-2/mt for spring positions."

The U.S. Census Bureau said Thursday U.S. exports of DDGS totaled 852,904 mt in February, down from 976,688 mt in January, but up 24% from a year ago. Mexico was the top destination in February, taking 19% U.S. exports and followed by South Korea, Indonesia and Vietnam. For the first two months of 2020, U.S. exports of DDGS were up 23% from a year ago.

NOTE: All prices listed below can change at any time and are subject to confirmation from seller.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 4/2/2020 3/26/2020
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $220 $0 $0
Wet $110 $0 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Dry $220 $220 $0
Wet $115 $115 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $0 $0 $0
Indiana Dry $0 $0 $0
Iowa Dry $0 $0 $0
Michigan Dry $0 $0 $0
Minnesota Dry $0 $0 $0
North Dakota Dry $0 $0 $0
New York Dry $0 $0 $0
South Dakota Dry $0 $0 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas APRIL Dry $185 $185 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $215 $215 $0
Iowa Dry $200 $195 $5
Michigan Dry $200 $190 $10
Minnesota Dry $205 $195 $10
Missouri Dry $215 $210 $5
Ohio Dry $215 $210 $5
South Dakota Dry $210 $195 $15
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $0 $0 $0
Wet $0 $0 $0
Illinois MARCH Dry $0 $0 $0
Nebraska Dry $0 $0 $0
Wet $0 $0 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $0 $0 $0
Indiana Dry $0 $0 $0
Iowa Dry $0 $0 $0
Michigan Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
New York Dry $0 $0 $0
North Dakota Dry $0 $0 $0
Ohio Dry $0 $0 $0
South Dakota Dry $0 $0 $0
Wisconsin Dry $0 $0 $0
Valero Energy Corp, San Antonio Texas
Indiana Dry $0 $0 $0
Iowa Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
Ohio Dry $0 $0 $0
South Dakota Dry $0 $0 $0
California Dry $0 $0 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $0 $0 $0
*Prices listed per ton.

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

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