DDG Weekly Update

DTN Weekly Average DDG Price Higher

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains weekly average spot price was up $3 to $139 per ton for the week ended Sept. 19. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly average spot price from the 40 locations DTN contacted was up $3 on average, to $139 per ton, for the week ended Sept. 19. The higher cash corn price is giving support to DDG prices.

In addition, with the closing of another ethanol plant, DDG supplies are getting tight in some states. In the past week, Siouxland Energy Cooperative in Sioux Center, Iowa, idled production at its 90-million-gallon corn-ethanol plant, bringing the number of idled plants so far this year to more than 15. These closures and other slowdowns have also kept the DDG prices firm.

The Energy Information Administration reported on Wednesday that for the week ended Sept. 13, ethanol production was at 1.003 million barrels per day (bpd), a five-month low. Stocks were increased by 700,000 barrels (bbl) from an 11-week low to 23.2 million bbl. Some merchandisers noted that ethanol margins improved for the week due to shutdowns reducing the abundant supply of ethanol.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Sept. 19 was at 104.41%. The value of DDG relative to soybean meal was at 47.57%. The cost per unit of protein for DDG was $5.15, compared to the cost per unit of protein for soybean meal at $6.15.

In its weekly export DDGS update, the U.S. Grains Council stated, "FOB Gulf DDGS prices are slightly ($3/mt) lower this week for October shipment while U.S. rail rates have increased $2/mt on average. Asking prices for 40-foot containers to Southeast Asia are up $4/mt to $239/mt following last week's active inquiries."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT CURRENT CHANGE
COMPANY STATE 9/19/2019 9/12/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $140 $145 -$5
Wet $70 $73 -$3
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $142 $140 $2
Wet $72 $72 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $145 $145 $0
Indiana Dry $145 $145 $0
Iowa Dry $130 $130 $0
Michigan Dry $150 $150 $0
Minnesota Dry $130 $130 $0
North Dakota Dry $130 $130 $0
New York Dry $145 $145 $0
South Dakota Dry $125 $125 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $135 $135 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $155 $150 $5
Iowa Dry $145 $135 $10
Michigan Dry $135 $135 $0
Minnesota Dry $140 $135 $5
Missouri Dry $150 $150 $0
Ohio Dry $150 $145 $5
South Dakota Dry $145 $140 $5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $150 $145 $5
Wet $60 $55 $5
Illinois Dry $145 $143 $2
Nebraska Dry $145 $140 $5
Wet $50 $45 $5
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $140 $135 $5
Indiana Dry $145 $140 $5
Iowa Dry $135 $130 $5
Michigan Dry $145 $135 $10
Minnesota Dry $130 $125 $5
Nebraska Dry $130 $130 $0
New York Dry $150 $150 $0
North Dakota Dry $135 $135 $0
Ohio Dry $150 $145 $5
South Dakota Dry $130 $125 $5
Wisconsin Dry $130 $130 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
subject Indiana Dry $136 $136 $0
subject Iowa Dry $125 $125 $0
subject Minnesota Dry $120 $120 $0
subject Nebraska Dry $135 $135 $0
subject Ohio Dry $140 $140 $0
subject South Dakota Dry $128 $128 $0
subject California Dry $195 $195 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $200 $205 -$5
*Prices listed per ton.
Weekly Average $139 $136 $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.
VALUE OF DDG VS. CORN & SOYBEAN MEAL
Settlement Price: Quote Date Bushel Short Ton
Corn 9/19/2019 $3.7275 $133.13
Soybean Meal 9/19/2019 $292.20
DDG Weekly Average Spot Price $139.00
DDG Value Relative to: 9/5 9/5
Corn 104.41% 107.41%
Soybean Meal 47.57% 45.93%
Cost Per Unit of Protein:
DDG $5.15 $5.04
Soybean Meal $6.15 $6.23
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
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