DDG Weekly Update
DDG Prices Mixed in Quiet Trade
The DTN average DDG spot price was $2 per ton lower for the week ended Oct. 13 at $106 per ton with price drops ranging from $2 to $13 per ton. Of the 37 locations from which DTN collects spot prices, two locations showed an increase, 19 were unchanged from the prior week, and the balance of the prices were lower. Demand from end users remains slow while supplies are expected to stay ample. Without much forward buying activity currently, it appears supplies will remain heavy and prevent prices from climbing, unless corn or soybean meal futures should move higher and stay that way for a while.
A merchandiser told me there wasn't much change in the market and prices were bouncing around. He said that BNSF product seems to be cheaper and Minnesota lower, as export demand is still slow. Another told me that he was sold up through November and another said he was sold up for October and his plant would be going down for fall maintenance. The bulk of the fall maintenance shutdowns should be finished before the last week of October. As plants come back on line, merchandisers expect DDG supplies to build, which could pressure prices.
Informa Economics reported, "In the Eastern Corn Belt the concerns with toxins are keeping sellers from selling much forward supply as they do not want to over commit on sales. This has created a 2-tier market with high-toxin supply trading at discounts. Some merchants are anticipating that the corn toxin situation will be less of an issue over time as some of the early planted corn supply works through supply channels. In Western Corn Belt markets some sellers have a several-dollar premium for forward months, but processors are not willing to participate at such levels. They are willing to wait in hopes of seasonal price strength during the 4th quarter."
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CIF NOLA (New Orleans, Louisiana) prices were lower for the week ended Oct. 13 with October prices down six cents to down five cents at $134 to $139.
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 10/13/2016 | 10/6/2016 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $120 | $120 | $0 | |
| Modified | $63 | $63 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $102 | $115 | -$13 | |
| Indiana | Dry | $108 | $110 | -$2 | |
| Iowa | Dry | $100 | $105 | -$5 | |
| Michigan | Dry | $118 | $125 | -$7 | |
| Minnesota | Dry | $90 | $100 | -$10 | |
| North Dakota | Dry | $90 | $100 | -$10 | |
| New York | Dry | $125 | $130 | -$5 | |
| South Dakota | Dry | $90 | $100 | -$10 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $110 | $110 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $115 | $120 | -$5 | |
| Iowa | Dry | $95 | $100 | -$5 | |
| Michigan | Dry | $112 | $112 | $0 | |
| Minnesota | Dry | $95 | $100 | -$5 | |
| Missouri | Dry | $115 | $115 | $0 | |
| Ohio | Dry | $115 | $120 | -$5 | |
| South Dakota | Dry | $95 | $100 | -$5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $118 | $118 | $0 | |
| Wet | $40 | $40 | $0 | ||
| Illinois | Dry | $130 | $130 | $0 | |
| Nebraska | Dry | $118 | $118 | $0 | |
| Wet | $40 | $40 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $115 | $115 | $0 | |
| Indiana | Dry | $115 | $115 | $0 | |
| Iowa | Dry | $105 | $105 | $0 | |
| Michigan | Dry | $115 | $115 | $0 | |
| Minnesota | Dry | $95 | $95 | $0 | |
| Nebraska | Dry | $100 | $100 | $0 | |
| New York | Dry | $130 | $130 | $0 | |
| North Dakota | Dry | $105 | $105 | $0 | |
| Ohio | Dry | $120 | $120 | $0 | |
| South Dakota | Dry | $100 | $100 | $0 | |
| Wisconsin | Dry | $110 | $110 | $0 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $100 | $100 | $0 | |
| Iowa | Dry | $95 | $100 | -$5 | |
| Minnesota | Dry | $90 | $95 | -$5 | |
| Nebraska | Dry | $100 | $95 | $5 | |
| Ohio | Dry | $120 | $115 | $5 | |
| South Dakota | Dry | $90 | $90 | $0 | |
| California | $153 | $152 | $1 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $170 | $175 | -$5 | |
| *Prices listed per ton. | |||||
| Weekly Average | $106 | $108 | -$2 | ||
| 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 | 10/13/2016 | $3.4950 | $124.82 |
| Soybean Meal | 10/13/2016 | $299.80 | |
| DDG Weekly Average Spot Price | $108.00 | ||
| DDG Value Relative to: | 10/13 | 10/6 | |
| Corn | 84.92% | 88.81% | |
| Soybean Meal | 35.36% | 35.82% | |
| Cost Per Unit of Protein: | |||
| DDG | $4.24 | $4.32 | |
| Soybean Meal | $6.31 | $6.35 | |
| 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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