DTN Weekly DDG Update

DDG Prices Up on Bullish Stocks Report

A bullish USDA grain stocks report, along with increased demand, helped prices of dried distillers grains end their long downward trend and see their first upturn in nearly 12 weeks.

The DTN weekly spot price average rose for the first time since mid-April, increasing $7 per ton in the past week, from $131 per ton last week to $138 per ton this week. This is the first time the average has increased since mid-June.

Of the 36 Midwestern locations from whom DTN collects spot prices, 30 reported increases from $5 per ton to $15 per ton since last week. Prices at three locations remained unchanged.

DTN Analyst Todd Hultman said the quarterly Grains Stocks estimates were bullish for corn and soybeans. Corn stocks in all positions on June 1 totaled 4.45 billion bushels and soybean stocks totaled 625 million bushels, both less than expected, USDA reported.

USDA estimated 88.9 million acres of corn will be planted in 2015, less than the pre-report estimate of 89.2 million acres and down 2% from a year ago, Hultman said. Planted soybean acres were estimated at a record-high 85.1 million, slightly below the pre-report estimate of 85.2 million acres and up 2% from a year ago.

Merchandisers told DTN the bullish stocks report supported DDG prices, adding as much as $15 per ton in some locations. With corn and beans rallying, DDG prices followed suit. The report also caused values to jump in some destination markets, including exports, CIF (cost, insurance and freight) and western rail.

Also, the previous weeks of low DDG prices sparked demand, which in turn caused an upturn in prices.

The value of DDG relative to corn this week fell to about 92% this week, from about 97% last week, reaching the lowest level since early December 2014. The value of DDG relative to soybean meal this week remained unchanged at 39%.

The cost per unit of protein for DDG was about $5.52 this week, compared to the cost per unit of protein for soybean meal at $7.52.

Cheryl Anderson can be reached at cheryl.anderson@dtn.com.

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IN THE NEWS

Grains Council Team Educates Southern Mexico Cattle Industry

The U.S. Grains Council recently sent a team to tour southern Mexico in an effort to educate end-users and distributors of dried distillers grains with solubles on the ingredients use in feed rations, according to an article on the Council's website (http://bit.ly/…).

The team of staff and consultants gave a series of presentations to ranchers in Chiapas, as well as presidents and chairmen of local cattle producer associations. The presentations will assist those consumers who still lack proper training for purchasing, feeding, storing DDGS, as well as formulating rations.

Since those in attendance represented the estimated 1.1 million head of cattle, about 40% of the total number of cattle in the area, the Council believes there is potential to expand the 1.5 million metric tons of DDGS Mexico imported in 2014.

More education and a better understanding will be key to expanding Mexico's DDGS purchasing as well improving access to the ingredient. Currently, the country's poorly-developed supply chain is constraining expansion of the country's DDGS market. The Council is working with local distributors to help make the supply chain more efficient.

The Council has also conducted feeding trials in Mexico with calves and dairy cattle that provided the cattle performed dramatically better with DDG. With diets supplemented with 80% DDGS and 20% molasses feed, dairy cows increased milk production by two liters and calves gained .741 kilograms more per day.

Cheryl Anderson can be reached at cheryl.anderson@dtn.com

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DTN WEEKLY DDG SPOT PRICES

CURRENT PREVIOUS
COMPANY STATE 7/3/2015 6/26/2015 CHANGE
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $165 $150 $15
Modified $70 $65 $5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $150 $145 $5
Indiana Dry $150 $145 $5
Iowa Dry $150 $135 $15
Michigan Dry $155 $145 $10
Minnesota Dry $135 $125 $10
North Dakota Dry $130 $115 $15
New York Dry $160 $155 $5
South Dakota Dry $130 $115 $15
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $130 $120 $10
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $145 $145 $0
Iowa Dry $120 $125 -$5
Michigan Dry $140 $145 -$5
Minnesota Dry $130 $130 $0
Missouri Dry $140 $145 -$5
Ohio Dry $140 $145 -$5
South Dakota Dry $120 $120 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $125 $120 $5
Wet $40 $40 $0
Illinois Dry $165 $155 $10
Nebraska Dry $125 $120 $5
Wet $40 $40 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $160 $150 $10
Indiana Dry $150 $140 $10
Iowa Dry $135 $130 $5
Michigan Dry $150 $140 $10
Minnesota Dry $135 $125 $10
Nebraska Dry $125 $120 $5
New York Dry $160 $150 $10
North Dakota Dry $130 $120 $10
Ohio Dry $150 $140 $10
South Dakota Dry $125 $115 $10
Wisconsin Dry $150 $145 $5
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry $140 $130 $10
Iowa Dry $120 $110 $10
Minnesota Dry $125 $115 $10
Nebraska Dry $120 $110 $10
Ohio Dry $150 $140 $10
South Dakota Dry $115 $105 $10
Western Milling, Goshen, California (559-302-1074)
California Dry $215 $205 $10
*Prices listed per ton.
Weekly Average $138 $131 $7
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.

*The spot prices gathered by DTN are only intended to reflect general market trends and may vary. Please contact individual plant or merchandiser for exact prices.

If you would be willing to take a weekly phone call and have your distiller grains spot prices listed in this feature, please contact Cheryl Anderson at (308) 224-1527 or (800) 369-7875, or e-mail cheryl.anderson@dtn.com.

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VALUE OF DDG VS. CORN & SOYBEAN MEAL
Settlement Price: Quote Date Bushel Short Ton
Corn 7/2/2015 $4.1975 $149.91
Soybean Meal 7/2/2015 $357.40
DDG Weekly Average Spot Price $138.00
DDG Value Relative to: 7/3 6/26 6/19
Corn 92.05% 97.42% 105.59%
Soybean Meal 38.61% 38.91% 41.33%
Cost Per Unit of Protein:
DDG $5.52 $5.24 $5.40
Soybean Meal $7.52 $7.09 $6.88
Notes:
Corn and soybean prices taken 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 25.

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USDA MARKET NEWS/DISTILLER GRAINS PRICES

USDA WEEKLY DISTILLERS GRAINS SUMMARY (June 26, 2015)

Dried Modified Wet
FOB PLANT PRICES PER TON
Iowa 115.00-150.00 49.00-70.00 36.00-42.00
Minnesota 138.00-140.00 65.00 40.00-42.00
Nebraska 110.00-133.00 54.00-65.00 30.00-52.00
South Dakota 105.00-125.00 65.00-70.50 35.00-45.00
Wisconsin 140.00-160.00 63.00-70.00 NQ
Eastern Corn Belt 130.00-165.00 55.00-68.00 NQ
Kansas 125.00-160.00 NQ 40.00-58.00
Northern Missouri 130.00-150.00 NQ 33.00-42.00
DELIVERED PRICES PER TON
CIF NOLA 170.00-195.00
Pacific Northwest 180.00-192.00
California 182.00-196.00
Texas Border (metric ton) 205.00-225.00
Lethbridge AB 175.00
Chicago 153.00-165.00

Dried Distillers Grain: 10% Moisture

Modified Wet Distillers: 50-55% Moisture

Wet Distillers Grains: 65-70% Moisture

CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Jun 30, 2015)

Distillers Dry Grains

  Rail to California Points        Ltd 213.00   up 18.00-13.00
  FOB Truck to California Points   Ltd 205.00   unch-dn 3.00

PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Jun 30, 2015)

Distillers Dried Grains: Offers for Distillers Dried Grains delivered in September by rail to feed mills in the Pacific Northwest were steady to 7.00 higher from 190.00-205.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were 7.00 to 10.00 higher from 208.00-220.0.

*All prices quoted per ton unless otherwise noted.

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NASS/USDA MONTHLY CO-PRODUCTS PRODUCTION

Dry and Wet Mill, Co-products and Products Produced - United States

March 2015 - May 2015

Jul 1, 2015

Highlights:

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.89 million tons during May 2015, up 12 percent from April 2015 and up 5 percent from March 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.23 million tons in May 2015, up 2 percent from April 2015 but down 3 percent from March 2015.

Wet mill corn gluten feed production was 350.1 thousand tons during May 2015, up 12 percent from April 2015 and up 6 percent from March 2015. Wet corn gluten feed 40 to 60 percent moisture was 325.3 thousand tons in May 2015, up 4 percent from April 2015 and up 5 percent from March 2015.

Co-products and Products Mar 2015 Apr 2015 May 2015
Dry Mill tons
Condensed distillers solubles (CDS-syrup) 163,713 139,930 148,637
Corn oil 107,141 102,610 118,281
Distillers dried grains (DDG) 438,728 411,664 418,448
Distillers dried grains with solubles (DDGS) 1,810,473 1,690,903 1,892,983
Modified distillers wet grains (DWG) <65% moisture 1,264,104 1,200,282 1,228,598
Modified distillers wet grains (DWG) 40-64% moisture 498,977 389,889 417,888
Wet Mill
Corn germ meal 57,439 61,922 69,135
Corn gluten feed 331,547 313,889 350,141
Corn gluten meal 93,078 89,356 97,295
Corn oil 42,684 42,998 53,208
Wet corn gluten feed 40-60% moisture 308,444 314,047 325,292

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RFA WEEKLY U.S. LIVESTOCK FEED PRODUCTION

CO-PRODUCT OUTPUTS (metric tons)
Week Ending Distillers Grains Corn Gluten Feed Corn Gluten Meal Total Feed Corn Oil (lbs.)
6/05/15 98699 10134 1877 110710 5835968
6/12/15 97505 10012 1854 109371 5765372
6/19/15 98898 10155 1881 110933 5847734
6/26/15 96311 9889 1811 10832 5694775

*Information from 2010 Weekly U.S. Fuel Ethanol/Livestock Feed Production report (http://www.ethanolrfa.org/…)

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DDG LINKS/RESOURCES

Organizations

*Distillers Grains Technology Council

http://www.distillersgrains.org

*National Corn Growers Association Corn Distillers Grains Brochure

http://ncga.com/…

*Iowa Corn

http://www.iowacorn.org/…

Nebraska Corn Board

http://www.nebraskacorn.org/…

*Renewable Fuels Association - Ethanol Co-Products

http://www.ethanolrfa.org/…

*American Coalition for Ethanol

http://www.ethanol.org/…

*U.S. Grains Council

http://www.grains.org/…

*South Dakota Corn Utilization Council

http://www.drieddistillersgrains.com

Government Sites

*Iowa Department of Agriculture and Land Stewardship/Office of Renewable Fuels & Coproducts

http://www.distillersgrains.com

University Sites

*University of Minnesota - Distillers Grains By-Products in Livestock

and Poultry Feed

http://www.ddgs.umn.edu

*University of Illinois - Illinois Livestock Integrated Focus Team Distillers Grains site

http://ilift.traill.uiuc.edu/…

*University of Nebraska - Beef Cattle Production By-Product Feeds site

http://beef.unl.edu/…

*University of Nebraska Extension

http://ianrpubs.unl.edu/…

*Iowa Beef Center - Iowa State University

http://www.iowabeefcenter.org/…

*University of Missouri - Byproducts Resource Page

http://agebb.missouri.edu/…

*South Dakota State University - Dairy Science Department - Dairy cattle research

http://dairysci.sdstate.edu/…

(select "Distillers Grains" from the topic menu)

*Purdue University Renewable Energy Web Site

http://www.extension.purdue.edu/…

(select "Biofuels Co-Products from the menu)

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DDG CONFERENCES

*Distillers Grains Technology Council Inc.'s 19th Annual Distillers Grains Symposium

The Distillers Grains Technology Council will hold its 19th Annual Distillers Grains Symposium on May 13-14, 2015 at the Sheraton Crown Center at Kansas City, Missouri. For information, contact the DGTC office at (515) 294-4019 or (800) 759-3448, or check the DGTC website (http://www.distillersgrains.org).

(If you are sponsoring or know of any event, conference or workshop on distillers grains, and would like to list it in the DTN Weekly Distillers Grains Update, please contact Cheryl Anderson (see contact info below).

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We welcome any comments/suggestions for this feature. Please let us know what information is valuable to you that we could include in the Distillers Grains Weekly Update. Please feel free to contact Cheryl Anderson at (402) 364-2183, or e-mail cheryl.anderson@dtn.com.

(AG/SK)