DDG Weekly Update
DDG Prices Steady to Mixed
The DTN average DDG spot price was $1 per ton lower for the week ended Oct. 20 at $105 with price drops ranging from $3 to $10 per ton. Of the 37 locations from which DTN collects spot prices, four showed a decrease, seven were lower than the prior week, and the balance of the prices were unchanged. Most merchandisers agreed the market has been pretty slow the past week but some plants are seeing buyers coming in for nearby needs if they haven't already contracted for the month. Many buyers continue to hold off purchasing product too far ahead in hopes DDG moves lower due to pressure from the corn harvest weakening cash corn prices.
Informa Economics reported, "End users are looking to buy DDG through the end of the year at nearby price levels, while processors are not accepting bids in anticipation for seasonal firming of prices during December. In the Eastern Corn Belt prices have held steady on concerns about toxin levels. This is creating a two-tier priced market. There appears to be just enough nearby trading to support current prices, but if some (feed) ration space is lost to lower-priced cash corn, then DDG supplies could become burdensome and increase downward pressure on price in coming weeks."
CIF NOLA (New Orleans, Louisiana) prices were higher for the week ended Oct. 20 with October prices up four cents to up 9 cents at 138 to 148 vs. one week ago. There is no carry through December as Nov/Dec bids are posted at 138 to 148 as well. Export demand has been flat for the most part, and a merchandiser told me there is really no big, front-end push for product at the Gulf right now.
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The value of DDG relative to corn for the week ended Oct. 20 was lower at 83.76% vs. 84.92% the prior week and the value of DDG relative to soybean meal was slightly lower at 34.47% vs. 35.36% the prior week. The cost per unit of protein for DDG was lower at $4.20 vs. $4.24 the prior week, compared to the cost per unit of protein for soybean meal which was higher at $6.41 vs. $6.31 the prior week.
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 10/20/2016 | 10/13/2016 | 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 | $102 | $0 | |
| Indiana | Dry | $108 | $108 | $0 | |
| Iowa | Dry | $100 | $100 | $0 | |
| Michigan | Dry | $120 | $118 | $2 | |
| Minnesota | Dry | $95 | $90 | $5 | |
| North Dakota | Dry | $90 | $90 | $0 | |
| New York | Dry | $130 | $125 | $5 | |
| South Dakota | Dry | $90 | $90 | $0 | |
| 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 | $115 | $0 | |
| Iowa | Dry | $95 | $95 | $0 | |
| Michigan | Dry | $112 | $112 | $0 | |
| Minnesota | Dry | $95 | $95 | $0 | |
| Missouri | Dry | $115 | $115 | $0 | |
| Ohio | Dry | $115 | $115 | $0 | |
| South Dakota | Dry | $95 | $95 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $115 | $118 | -$3 | |
| Wet | $40 | $40 | $0 | ||
| Illinois | Dry | $120 | $130 | -$10 | |
| Nebraska | Dry | $115 | $118 | -$3 | |
| Wet | $40 | $40 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $115 | $115 | $0 | |
| Indiana | Dry | $110 | $115 | -$5 | |
| 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 | $110 | $120 | -$10 | |
| South Dakota | Dry | $95 | $100 | -$5 | |
| Wisconsin | Dry | $102 | $110 | -$8 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $100 | $100 | $0 | |
| Iowa | Dry | $95 | $95 | $0 | |
| Minnesota | Dry | $90 | $90 | $0 | |
| Nebraska | Dry | $100 | $100 | $0 | |
| Ohio | Dry | $120 | $115 | $5 | |
| South Dakota | Dry | $90 | $90 | $0 | |
| California | $163 | $152 | $11 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $165 | $175 | -$10 | |
| *Prices listed per ton. | |||||
| Weekly Average | $105 | $106 | -$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 | 10/20/2016 | $3.5100 | $125.36 |
| Soybean Meal | 10/20/2016 | $304.60 | |
| DDG Weekly Average Spot Price | $105.00 | ||
| DDG Value Relative to: | 10/20 | 10/13 | |
| Corn | 83.76% | 84.92% | |
| Soybean Meal | 34.47% | 35.36% | |
| Cost Per Unit of Protein: | |||
| DDG | $4.20 | $4.24 | |
| Soybean Meal | $6.41 | $6.31 | |
| 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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