DTN DDG Weekly Update

OMAHA (DTN) -- Distillers dried grains average spot prices from the 40 locations DTN contacted were $8 per ton higher, at $146 per ton for the week ended Nov. 29, versus two weeks ago. Prices have moved higher three weeks in a row, and merchandisers noted that slowdowns and plant closures has really tightened supplies.

Informa Economics noted that, one of the main reasons for the quick jump higher in DDG prices is struggling ethanol plant margins. "A 13-year low in ethanol prices is putting the squeeze on financial health and throttling production potential for the winter."

The EIA reported Wednesday that ethanol plant production increased modestly by 6,000 barrels per day (bpd) to 1,048 million bpd during the week ended Nov. 23, 1.7% lower than the corresponding week a year ago.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 29 was at 113.48%. The value of DDG relative to soybean meal was at 47.57%. The cost per unit of protein for DDG was $5.41, compared to the cost per unit of protein for soybean meal at $6.46. On a relative value, DDG prices are mostly in line with soymeal, but are slightly higher than normal basis corn values.

"Higher prices could start to create more pushback in rations down the line, but for now most traders are leaning bullish," noted Informa.

ALL PRICES SUBJECT TO CONFIRMATION			CURRENT	PREVIOUS	CHANGE
COMPANY	STATE		11/29/2018	11/15/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
	Missouri	Dry	$160	$153	$7
		Modified	$82	$80	$2
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
	Missouri Subject	Dry	$165	$150	$15
		Wet	$80	$75	$5
CHS, Minneapolis, MN (800-769-1066)
	Illinois	Dry	$150	$145	$5
	Indiana	Dry	$145	$135	$10
	Iowa	Dry	$145	$135	$10
	Michigan	Dry	$140	$140	$0
	Minnesota	Dry	$145	$130	$15
	North Dakota	Dry	$155	$135	$20
	New York	Dry	$155	$145	$10
	South Dakota	Dry	$145	$130	$15
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
	Kansas	Dry	$155	$145	$10
POET Nutrition, Sioux Falls, SD (888-327-8799)
	Indiana	Dry	$143	$138	$5
	Iowa	Dry	$152	$148	$4
	Michigan	Dry	$140	$137	$3
	Minnesota	Dry	$147	$138	$9
	Missouri	Dry	$167	$158	$9
	Ohio	Dry	$142	$138	$4
	South Dakota	Dry	$150	$140	$10
United BioEnergy, Wichita, KS (316-616-3521)
	Kansas	Dry	$144	$144	$0
		Wet	$55	$55	$0
	Illinois	Dry	$150	$148	$2
	Nebraska	Dry	$144	$144	$0
		Wet	$55	$55	$0
U.S. Commodities, Minneapolis, MN (888-293-1640)
	Illinois	Dry	$135	$135	$0
	Indiana	Dry	$145	$135	$10
	Iowa	Dry	$145	$135	$10
	Michigan	Dry	$140	$135	$5
	Minnesota	Dry	$145	$130	$15
	Nebraska	Dry	$160	$145	$15
	New York	Dry	$150	$150	$0
	North Dakota	Dry	$150	$140	$10
	Ohio	Dry	$145	$135	$10
	South Dakota	Dry	$145	$135	$10
	Wisconsin	Dry	$136	$130	$6
Valero Energy Corp, San Antonio Texas			(210-345-3362)	(210-345-3362)
	Indiana	Dry	$139	$140	-$1
	Iowa	Dry	$135	$130	$5
	Minnesota	Dry	$145	$130	$15
	Nebraska	Dry	$135	$125	$10
	Ohio	Dry	$140	$140	$0
	South Dakota	Dry	$140	$125	$15
	California		$212	$192	$20
Western Milling, Goshen, California (559-302-1074)
	California	Dry	$223	$206	$17
*Prices listed per ton.
	Weekly Average		$146	$138	$8
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	11/29/2018	$3.6025	$128.66
Soybean Meal	11/29/2018	$306.90
DDG Weekly Average Spot Price	$146.00
DDG Value Relative to:		11/29	11/16
Corn		113.48%	105.14%
Soybean Meal		47.57%	45.19%
Cost Per Unit of Protein:
DDG		$5.41	$5.11
Soybean Meal		$6.46	$6.43

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

Follow her on Twitter @MaryCKenn

(BAS/BE)

Copyright 2018 DTN/The Progressive Farmer. All rights reserved.