DDG Weekly Update

Domestic DDG Average Price Slightly Lower

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains average price was weaker at $139 per ton for the week ended April 11. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was down 1 cent at $139 per ton for the week ended April 11, versus the prior week.

Spot DDG truck prices were lower on average for the week, as blizzard conditions have created logistic issues, especially in the Upper Midwest where many roads were closed Thursday and remain snow-packed Friday. The weakness in the corn market recently has also put pressure on prices. California prices were notably weaker, as one merchandiser noted that logistics have improved.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended April 11 was at 108.11%. The value of DDG relative to soybean meal was at 45.25%. The cost per unit of protein for DDG was $5.15, compared to the cost per unit of protein for soybean meal at $6.47.

The U.S. Grains Council noted in its weekly update that export distillers dried grain with solubles (DDGS) values continued last week's pattern and were down across the board for indications offered in their report.

"DDGS indications for U.S. rail rates, including rates to Mexico and Canada, fell this week from last week," the U.S. Grains Council said in its update. "CIF barge rates in New Orleans fell as well (-$6 per metric ton) and FOB vessel U.S. Gulf indications were down for both the nearby and deferred month(s) delivery. FOB vessel U.S. Gulf is at $207/mt for May delivery. Internationally, 40-foot containers to Southeast Asia were down $5/mt on average for May delivery. Merchandisers expect an uptick in buying interest amid the current period of attractive prices."

Inform Economics reported that China's Commerce Ministry confirmed to Reuters that the agency is looking at a request by the U.S. Grains Council to review antidumping duties on imports of U.S. distillers dried grain with solubles (DDGS).

"The news service received the confirmation via fax from the Chinese ministry that said the request was submitted to the agency Feb. 28 and they sought additional information from the US Grains Council, which was submitted on March 29," noted Informa.

Should the ministry opt to undertake the review, the statement to the news service said, it would be done in an "impartial and fair way and a final decision would be made based on that review."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 4/11/2019 4/4/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $145 $153 -$8
Wet $78 $78 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $145 $145 $0
Wet $80 $85 -$5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $142 $143 -$1
Indiana Dry $140 $140 $0
Iowa Dry $130 $135 -$5
Michigan Dry $140 $140 $0
Minnesota Dry $130 $130 $0
North Dakota Dry $130 $130 $0
New York Dry $145 $145 $0
South Dakota Dry $130 $130 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $145 $145 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $145 $145 $0
Iowa Dry $135 $135 $0
Michigan Dry $130 $130 $0
Minnesota Dry $130 $130 $0
Missouri Dry $150 $150 $0
Ohio Dry $140 $140 $0
South Dakota Dry $140 $140 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $140 $140 $0
Wet $60 $60 $0
Illinois Dry $148 $148 $0
Nebraska Dry $140 $140 $0
Wet $60 $60 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $135 $135 $0
Indiana Dry $130 $135 -$5
Iowa Dry $130 $135 -$5
Michigan Dry $130 $130 $0
Minnesota Dry $130 $130 $0
Nebraska Dry $150 $150 $0
New York Dry $155 $155 $0
North Dakota Dry $150 $150 $0
Ohio Dry $145 $145 $0
South Dakota Dry $145 $145 $0
Wisconsin Dry $135 $135 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $140 $140 $0
Iowa Dry $140 $140 $0
Minnesota Dry $130 $130 $0
Nebraska Dry $150 $150 $0
Ohio Dry $145 $145 $0
South Dakota Dry $140 $140 $0
California Dry $195 $205 -$10
Western Milling, Goshen, California (559-302-1074)
California Dry $215 $230 -$15
*Prices listed per ton.
Weekly Average $139 $140 -$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 4/11/2019 $3.6000 $128.57
Soybean Meal 4/11/2019 $307.20
DDG Weekly Average Spot Price $139.00
DDG Value Relative to: 4/11 4/4
Corn 108.11% 107.32%
Soybean Meal 45.25% 44.89%
Cost Per Unit of Protein:
DDG $5.15 $5.19
Soybean Meal $6.47 $6.57
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 27.

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

Follow her on Twitter @MaryCKenn

(AG)

Mary Kennedy

Mary Kennedy
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