DDG Weekly Update

DTN Weekly DDG Average Price Strengthens

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
Connect with Mary:
The DTN domestic distillers dried grains average price was up $4 at $137 per ton for the week ended June 13. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was $4 higher this week versus the prior week, at $137 per ton for the week ended June 13. DDG prices in the Eastern Corn Belt are more firm compared to other areas and, while Upper Midwest values are mixed, that may change once the Upper Mississippi River opens.

While water is receding there, the river remains closed farther south where there are still seven locks closed. The biggest closure remains at St. Louis where water levels are at 43.7 feet as of midday June 14 and need to go below 38 feet, which may not happen until June 19.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended June 13 was at 86.79% and is below the five-year average. The value of DDG relative to soybean meal was at 42.59%. The cost per unit of protein for DDG was $5.07, compared to the cost per unit of protein for soybean meal at $6.77.

Ethanol supply in the United States moved sharply lower during the first week of June, falling to 11-month lows according to the recent Energy Information Administration report. EIA reported ethanol plant production gained 52,000 bpd or 5% to 1.096 million bpd, reversing up from a four-week low.

In its weekly update, the U.S. Grains Council noted DDGS indications were higher again this week. "DDGS indications for FOB vessel Gulf are higher this week at $222/mt for July delivery. Indications for 40-foot containers to Southeast Asia decreased $3/mt, on average, Merchandisers report new sales to Indonesia and continued strong interest from buyers in Vietnam."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 6/13/2019 6/6/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $145 $142 $3
Wet $75 $74 $1
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $145 $135 $10
Wet $75 $65 $10
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $150 $145 $5
Indiana Dry $145 $140 $5
Iowa Dry $135 $130 $5
Michigan Dry $145 $145 $0
Minnesota Dry $135 $125 $10
North Dakota Dry $135 $130 $5
New York Dry $155 $155 $0
South Dakota Dry $135 $115 $20
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $135 $135 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $140 $140 $0
Iowa Dry $135 $135 $0
Michigan Dry $130 $130 $0
Minnesota Dry $135 $135 $0
Missouri Dry $140 $140 $0
Ohio Dry $150 $150 $0
South Dakota Dry $145 $145 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $120 $120 $0
Wet $45 $45 $0
Illinois Dry $140 $135 $5
Nebraska Dry $120 $120 $0
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $140 $130 $10
Indiana Dry $140 $135 $5
Iowa Dry $135 $130 $5
Michigan Dry $135 $130 $5
Minnesota Dry $130 $125 $5
Nebraska Dry $130 $125 $5
New York Dry $150 $145 $5
North Dakota Dry $140 $140 $0
Ohio Dry $150 $145 $5
South Dakota Dry $130 $125 $5
Wisconsin Dry $130 $120 $10
Valero Energy Corp, San Antonio Texas (210-345-3362)
Call Indiana Dry $140 $140 $0
Call Iowa Dry $125 $125 $0
Call Minnesota Dry $125 $125 $0
Call Nebraska Dry $135 $135 $0
Call Ohio Dry $150 $150 $0
Call South Dakota Dry $130 $130 $0
Call California Dry $205 $205 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $215 $205 $10
*Prices listed per ton.
Weekly Average $137 $133 $4
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 6/13/2019 $4.4200 $157.86
Soybean Meal 6/13/2019 $321.70
DDG Weekly Average Spot Price $137.00
DDG Value Relative to: 6/13 6/6
Corn 86.79% 88.56%
Soybean Meal 42.59% 42.10%
Cost Per Unit of Protein:
DDG $5.07 $4.93
Soybean Meal $6.77 $6.65
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

(CZ)

Mary Kennedy

Mary Kennedy
Connect with Mary: