DDG Weekly Update
DDG Values Firm
The DTN average weekly DDG spot price was $1 higher for the week ending August 19 at $122 per ton, vs. $121 the prior week. Of the 37 locations DTN collects spot prices from, 12 showed increases from last week, 6 locations reported decreases and the balance of the prices were unchanged. A merchandiser told DTN that a pick-up in demand in the rail and export markets helped keep DDG values were steady to firm.
CIF NOLA bids were mostly higher Friday compared to one week ago with August and September up 2 to 4 cents at $160 to $168 per ton. Nearby container yard bids were higher as spot buying interest has improved. U.S. Grains Council noted that USDA's latest report on trade data showed exports of U.S. distiller's dried grains with solubles (DDGS) to all countries were up 6% this marketing year, ending Aug. 30. "If this pace continues, the export tally for the year should approach 12 million metric tons, near a record set during the 2013/2014 marketing year."
DDG prices are staying in line with lower corn and soybean meal prices and are actually competitive enough to remain in feed rations. A merchandiser told DTN buyers are looking for forward prices, but he is isn't willing to book out too far yet. Others reported that most of the buying interest seen right now is for spot purchases.
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The EIA reported Wednesday that U.S. ethanol production was at 1,029,000 barrels per day for the week ending August 12, which was equal to the record set in mid-July. Ethanol stocks were down slightly, but Informa Economics reported that historically high weekly ethanol production continues to pressure margins with central Illinois at $0.19 per gallon as of August 10. The continued high production levels also adds more DDG supplies and, in some areas, can pressure spot prices.
The value of DDG relative to corn for the week ending August 19 was lower vs. the prior week at 102.20% and the value of DDG relative to soybean meal was slightly higher at 36.97% vs. 36.24% last week. The cost per unit of protein for DDG was slightly higher at $4.88 vs. the prior week of $4.84, compared to the cost per unit of protein for soybean meal at $6.95, which was lower vs. the prior week of $7.03.
WEEKLY DDG PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 8/18/2016 | 8/11/2016 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $135 | $140 | -$5 | |
| Modified | $65 | $65 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $140 | $130 | $10 | |
| Indiana | Dry | $130 | $125 | $5 | |
| Iowa | Dry | $120 | $115 | $5 | |
| Michigan | Dry | $135 | $130 | $5 | |
| Minnesota | Dry | $115 | $110 | $5 | |
| North Dakota | Dry | $115 | $105 | $10 | |
| New York | Dry | $125 | $120 | $5 | |
| South Dakota | Dry | $115 | $105 | $10 | |
| Hawkeye Gold, IA (515-663-6413) | |||||
| Iowa | Dry | NA | NA | #VALUE! | |
| Modified | NA | NA | #VALUE! | ||
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $120 | $120 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $125 | $128 | -$3 | |
| Iowa | Dry | $115 | $115 | $0 | |
| Michigan | Dry | $120 | $120 | $0 | |
| Minnesota | Dry | $110 | $110 | $0 | |
| Missouri | Dry | $135 | $135 | $0 | |
| Ohio | Dry | $130 | $135 | -$5 | |
| South Dakota | Dry | $110 | $115 | -$5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $118 | $118 | $0 | |
| Wet | $40 | $40 | $0 | ||
| Illinois | Dry | $145 | $145 | $0 | |
| Nebraska | Dry | $118 | $118 | $0 | |
| Wet | $40 | $40 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $125 | $130 | -$5 | |
| Indiana | Dry | $120 | $125 | -$5 | |
| Iowa | Dry | $115 | $115 | $0 | |
| Michigan | Dry | $120 | $120 | $0 | |
| Minnesota | Dry | $105 | $105 | $0 | |
| Nebraska | Dry | $110 | $110 | $0 | |
| New York | Dry | $120 | $120 | $0 | |
| North Dakota | Dry | $115 | $120 | -$5 | |
| Ohio | Dry | $120 | $120 | $0 | |
| South Dakota | Dry | $105 | $110 | -$5 | |
| Wisconsin | Dry | $115 | $115 | $0 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $130 | $125 | $5 | |
| Iowa | Dry | $110 | $110 | $0 | |
| Minnesota | Dry | $110 | $105 | $5 | |
| Nebraska | Dry | $115 | $110 | $5 | |
| Ohio | Dry | $130 | $130 | $0 | |
| South Dakota | Dry | $110 | $105 | $5 | |
| California | $185 | $175 | $10 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $185 | $185 | $0 | |
| *Prices listed per ton. | |||||
| Weekly Average | $122 | $121 | $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 | 8/19/2016 | $3.3425 | $119.38 |
| Soybean Meal | 8/19/2016 | $330.00 | |
| DDG Weekly Average Spot Price | $121.00 | ||
| DDG Value Relative to: | 8/19 | 8/11 | |
| Corn | 102.20% | 105.55% | |
| Soybean Meal | 36.97% | 36.24% | |
| Cost Per Unit of Protein: | |||
| DDG | $4.88 | $4.84 | |
| Soybean Meal | $6.95 | $7.03 | |
| 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 25. | |||
Mary Kennedy can be reached at Mary.Kennedy@dtn.com
Follow her on Twitter @MaryCKenn
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