DDG Weekly Update
DTN Weekly Average DDG Price Unchanged
DTN Cash Grains Analyst
OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly spot price from the 40 locations DTN contacted was unchanged on average at $147 per ton for the week ended Feb. 20. Cash corn prices remain high and DDG value to corn and soymeal is still above average.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Feb. 20 was at 108.74%. The value of DDG relative to soybean meal was at 50.19%. The cost per unit of protein for DDG was $5.44, compared to the cost per unit of protein for soybean meal at $6.17.
The Energy Information Administration reported Thursday morning that ethanol inventory was higher for the week ended Feb. 14. Plant production was up nearly 1%, while demand rose to the highest level since late December 2019.
In its weekly DDGS export update, the U.S. Grains Council noted: "DDGS markets are firmer this week with demand increasing for various destination markets. Merchandisers are reporting a 'decent amount' of export sales in the past few days. That has supported DDGS values across the board. Barge CIF NOLA values are $2 per metric ton (mt) higher, while FOB Gulf offers are up $5/mt for March/April/May positions. U.S. rail rates have firmed again following last week's weakness and are $2-$3/mt higher. Offers for 40-foot containers to Asia are mostly higher with rates to Vietnam, Japan, and Myanmar up $2-$3/mt, while prices for product to Thailand and Indonesia are down slightly after rising last week. The average offer for containers to Southeast Asia is unchanged from last week at $253/mt for March shipment and $250/mt for April."
Some of the strength in Gulf prices comes from cheaper barge freight, but also due to flooding slowing barges heading south. The Lower Mississippi River (LMR) is still in flood stage, which is causing delays all the way down to and in the Gulf. The river at Baton Rouge is at 38.84 feet (flood stage is 35 feet) and is expected to remain above flood stage, possibly through March. This is not good news given that we have yet to have snowmelt from the North, but plenty of rain has been falling in the South, causing the flooding.
* CIF (cost, insurance and freight paid by seller) NOLA (New Orleans)
* FOB (free on board means buyer pays costs of ocean freight, insurance, unloading, and transportation from originating port)
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
| COMPANY | STATE | 2/20/2020 | 2/13/2020 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $160 | $157 | $3 | |
| Wet | $80 | $79 | $1 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri | Dry | $155 | $155 | $0 | |
| Wet | $80 | $80 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| subject | Illinois | Dry | $155 | $155 | $0 |
| subject | Indiana | Dry | $150 | $150 | $0 |
| subject | Iowa | Dry | $140 | $140 | $0 |
| subject | Michigan | Dry | $148 | $148 | $0 |
| subject | Minnesota | Dry | $145 | $145 | $0 |
| subject | North Dakota | Dry | $135 | $135 | $0 |
| subject | New York | Dry | $155 | $155 | $0 |
| subject | South Dakota | Dry | $135 | $135 | $0 |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $148 | $148 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $155 | $155 | $0 | |
| Iowa | Dry | $138 | $140 | -$2 | |
| Michigan | Dry | $150 | $150 | $0 | |
| Minnesota | Dry | $138 | $138 | $0 | |
| Missouri | Dry | $155 | $155 | $0 | |
| Ohio | Dry | $160 | $160 | $0 | |
| South Dakota | Dry | $145 | $148 | -$3 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $145 | $150 | -$5 | |
| Wet | $50 | $55 | -$5 | ||
| Illinois MARCH | Dry | $160 | $162 | -$2 | |
| Nebraska | Dry | $145 | $150 | -$5 | |
| Wet | $45 | $50 | -$5 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $155 | $152 | $3 | |
| Indiana | Dry | $155 | $155 | $0 | |
| Iowa | Dry | $140 | $140 | $0 | |
| Michigan | Dry | $155 | $150 | $5 | |
| Minnesota | Dry | $140 | $140 | $0 | |
| Nebraska | Dry | $135 | $135 | $0 | |
| New York | Dry | $160 | $160 | $0 | |
| North Dakota | Dry | $145 | $145 | $0 | |
| Ohio | Dry | $160 | $160 | $0 | |
| South Dakota | Dry | $140 | $140 | $0 | |
| Wisconsin | Dry | $143 | $143 | $0 | |
| Valero Energy Corp, San Antonio Texas | |||||
| Indiana | Dry | $150 | $150 | $0 | |
| Iowa | Dry | $140 | $140 | $0 | |
| Minnesota | Dry | $135 | $135 | $0 | |
| Nebraska | Dry | $145 | $145 | $0 | |
| Ohio | Dry | $160 | $160 | $0 | |
| South Dakota | Dry | $140 | $140 | $0 | |
| California | Dry | $198 | $198 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $210 | $207 | $3 | |
| *Prices listed per ton. | |||||
| Weekly Average | $147 | $147 | $0 | ||
| 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 | 2/20/2020 | $3.7850 | $135.18 |
| Soybean Meal | 2/20/2020 | $292.90 | |
| DDG Weekly Average Spot Price | $147.00 | ||
| DDG Value Relative to: | 2/20 | 2/14 | |
| Corn | 108.74% | 108.46% | |
| Soybean Meal | 50.19% | 50.36% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.44 | $5.44 | |
| Soybean Meal | $6.17 | $6.15 | |
| 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
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