DDG Weekly Update
DDG Prices Steady to Higher
The DTN average DDG spot price was $3 per ton higher for the week ended Oct. 27 at $108 with price hikes ranging from $2 to $13 per ton. Of the 37 locations from which DTN collects spot prices, 20 showed an increase, one was lower than the prior week, and the balance of the prices were unchanged. Merchandisers noted that due to the spike in soymeal the past week, DDG prices firmed as well. Domestic demand is picking up and according to one merchandiser, since DDG are a good value currently compared to other feed ingredients, inclusion rates are higher.
CIF NOLA (New Orleans, Louisiana) prices were higher for the week ended Oct. 27 with October prices up ten cents to up 2 cents vs. one week ago and are at 150. The Nov/Dec bids were up 14 cents to up 7 cents vs. one week ago and are at 152 to 155. Informa Economics reported, "There were more export buyers looking to get supplies on its way to Vietnam to insure supplies get under the December cutoff before fumigation regulations change." Last week, Vietnam, the third top importer of U.S.DDG, announced it would suspend imports of U.S. DDG in mid-December because of contamination from the "Ballion" variety of beetle. Deputy Agriculture Minister Le Quoc Doanh said in the directive that inspection of incoming U.S. cargos of DDG will be tighter ahead of the suspension date.
For the first eight months of 2016, Vietnam has already imported close to 687,700 metric tons of U.S. DDG with expectations imports could reach 1 million metric tons this year. When imports to China stalled, Vietnam absorbed some of that lost business. The U.S. Grains Council reported to attendees of the 2016 Export Exchange this past week that they are hopeful the suspension will not take place. Should the suspension happen, the domestic market could become burdened with too much supply, which in turn could cause lower prices.
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The value of DDG relative to corn for the week ended Oct. 27 was higher at 84.59% vs. 83.76% the prior week and the value of DDG relative to soybean meal was lower at 32.97% vs. 34.47% the prior week. The cost per unit of protein for DDG was higher at $4.32 vs. $4.20 the prior week, compared to the cost per unit of protein for soybean meal which was higher at $6.90 vs. $6.41 the prior week.
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 10/27/2016 | 10/20/2016 | 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 | $115 | $102 | $13 | |
| Indiana | Dry | $110 | $108 | $2 | |
| Iowa | Dry | $107 | $100 | $7 | |
| Michigan | Dry | $120 | $120 | $0 | |
| Minnesota | Dry | $98 | $95 | $3 | |
| North Dakota | Dry | $100 | $90 | $10 | |
| New York | Dry | $130 | $130 | $0 | |
| South Dakota | Dry | $95 | $90 | $5 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $110 | $110 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $110 | $115 | -$5 | |
| Iowa | Dry | $100 | $95 | $5 | |
| 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 | $118 | $115 | $3 | |
| Wet | $40 | $40 | $0 | ||
| Illinois | Dry | $125 | $120 | $5 | |
| Nebraska | Dry | $118 | $115 | $3 | |
| Wet | $40 | $40 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $115 | $115 | $0 | |
| Indiana | Dry | $112 | $110 | $2 | |
| Iowa | Dry | $105 | $105 | $0 | |
| Michigan | Dry | $118 | $115 | $3 | |
| 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 | $110 | $0 | |
| South Dakota | Dry | $95 | $95 | $0 | |
| Wisconsin | Dry | $102 | $102 | $0 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $105 | $100 | $5 | |
| Iowa | Dry | $100 | $95 | $5 | |
| Minnesota | Dry | $98 | $90 | $8 | |
| Nebraska | Dry | $105 | $100 | $5 | |
| Ohio | Dry | $125 | $120 | $5 | |
| South Dakota | Dry | $95 | $90 | $5 | |
| California | $165 | $163 | $2 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $175 | $165 | $10 | |
| *Prices listed per ton. | |||||
| Weekly Average | $108 | $105 | $3 | ||
| 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. | |||||
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| VALUE OF DDG VS. CORN & SOYBEAN MEAL | |||
| Settlement Price: | Quote Date | Bushel | Short Ton |
| Corn | 10/27/2016 | $3.5750 | $127.68 |
| Soybean Meal | 10/27/2016 | $327.60 | |
| DDG Weekly Average Spot Price | $105.00 | ||
| DDG Value Relative to: | 10/27 | 10/20 | |
| Corn | 84.59% | 83.76% | |
| Soybean Meal | 32.97% | 34.47% | |
| Cost Per Unit of Protein: | |||
| DDG | $4.32 | $4.20 | |
| Soybean Meal | $6.90 | $6.41 | |
| 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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