DDG Weekly Update

DTN Weekly 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 down $1 per ton at $140 per ton for the week ended July 18. (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 per ton, at $140 per ton for the week ended July 18. DDG prices remain flat overall. With an extreme heat wave covering the Midwest, feeders will not need as much feed as normal for animals because they become sluggish in the heat and eat less.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended July 18 was at 92.34%. The value of DDG relative to soybean meal was at 45.60%. The cost per unit of protein for DDG was $5.19, compared to the cost per unit of protein for soybean meal at $6.46.

The midweek Energy Information Administration report noted a 356,000 barrel (bbl) build in ethanol stocks in the U.S, pushing total supply to a 23.365 million bbl eight-week high during the week-ended July 12. The EIA noted that U.S. plant production moved off a five-week low and blending demand continued lower.

In its weekly export DDGS update, the U.S. Grains Council stated, "Easing river navigation is allowing CIF Gulf barge values to decrease and with a softening of FOB Gulf values. FOB Gulf prices for August loading are down $5/metric ton (mt) this week while rail-delivered prices to the PNW are up $4/mt. Prices for 40-foot containers to southeast Asia are up $2/mt this week to average $245/mt as international inquiries and demand remains steady."

Tom Russell of Russel1 Marine Group told me at midweek, "In the New Orleans (NOLA) and Baton Rouge Harbors, flood stage protocols are in place until water levels drop below 16 feet in NOLA and Baton Rouge levels drop below 40 feet. Flood stage protocol requires all vessel traffic, north bound and south bound, between mile 88 and mile 234 be restricted to daylight only. Hope is that flood stage protocol will be lifted by July 23-24, barring any additional rain events to change forecasts."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 7/18/2019 7/11/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $160 $155 $5
Wet $80 $80 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $145 $150 -$5
Wet $75 $77 -$2
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $145 $147 -$2
Indiana Dry $140 $142 -$2
Iowa Dry $130 $132 -$2
Michigan Dry $150 $142 $8
Minnesota Dry $132 $132 $0
North Dakota Dry $132 $132 $0
New York Dry $152 $152 $0
South Dakota Dry $132 $132 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $140 $140 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $160 $165 -$5
Iowa Dry $130 $135 -$5
Michigan Dry $130 $140 -$10
Minnesota Dry $130 $135 -$5
Missouri Dry $160 $165 -$5
Ohio Dry $160 $165 -$5
South Dakota Dry $145 $150 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $145 $145 $0
Wet $40 $40 $0
Illinois Dry $145 $145 $0
Nebraska Dry $145 $145 $0
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $140 $140 $0
Indiana Dry $140 $140 $0
Iowa Dry $130 $135 -$5
Michigan Dry $135 $135 $0
Minnesota Dry $130 $130 $0
Nebraska Dry $135 $130 $5
New York Dry $150 $150 $0
North Dakota Dry $135 $140 -$5
Ohio Dry $150 $150 $0
South Dakota Dry $130 $130 $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 $135 $135 $0
Minnesota Dry $135 $135 $0
Nebraska Dry $135 $135 $0
Ohio Dry $150 $150 $0
South Dakota Dry $130 $130 $0
California Dry $195 $195 $0
Western Milling, Goshen, California (559-302-1074)
SUBJECT California Dry $205 $205 $0
*Prices listed per ton.
Weekly Average $140 $141 -$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 7/18/2019 $4.2450 $151.61
Soybean Meal 7/18/2019 $307.00
DDG Weekly Average Spot Price $140.00
DDG Value Relative to: 7/18 7/11
Corn 92.34% 88.17%
Soybean Meal 45.60% 45.25%
Cost Per Unit of Protein:
DDG $5.19 $5.22
Soybean Meal $6.46 $6.56
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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