DTN Weekly Distillers Grains Update

DDG Prices Remain Steady Amid Quiet Trade

Except for some minor adjustments in a few locations, prices of dried distillers grains remained steady in the past week, with merchandisers noting that trade was quiet.

The DTN weekly spot price average remained unchanged at $123 per ton after a four-week-long upward trend. This is still the highest level the average has reached since the last week in September.

Of the 36 Midwestern locations DTN collects spot prices from, 30 locations reported their prices were unchanged. Prices at six locations increased and prices at six locations decreased in the past week.

Merchandisers told DTN the past week as been quiet, with no new demand from overseas markets, no changes in demand from domestic markets and both the barge market and Chicago trade being flat.

One merchandiser said nothing is going on currently that would push the market upward, but there is not a lot to pull it back, either.

At present, the market just seems to be treading water, but will possibly strengthen a bit as we move into December. Currently, there is about a $10 premium for January versus nearby prices, so buyers will likely have to pay up if they want to buy for January.

Some buyers may be buying hand-to-mouth, waiting to see if this week's USDA World Agricultural Supply and Demand Estimates report affected prices.

The value of DDG relative to corn this week was at about 95.14%, up about 4 percentage points from last week's value of 91.96%. The value of DDG relative to soybean meal was 42.21%.

The cost per unit of protein for DDG was about $4.92 this week, compared to the cost per unit of protein for soybean meal at $6.13.

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

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IN THE NEWS

DDGS Sales Finalized During Southeast Asia Buyers Conference

A recent conference held in Cambodia succeeded in renewing interest among Southeastern Asian buyers of U.S. dried distillers grains with solubles, according to an article by the U.S. Grains Council (http://bit.ly/…), who sponsored the conference along with the U.S. Soybean Export Council.

The council reported the events set a new DDGS sales record with 335,000 metric tons of DDGS traded, worth an estimated $81 million. In fact, more than a fifth of the annual DDGS sales volume of Southern Asia was either finalized or discussed during the event.

Last year, about 1.6 million tons of U.S. DDGS was sold to countries with representatives attending the conference.

While the geography of Southeast Asia makes it a challenging market, the conference provided a central location for buyers and sellers to meet, network and facilitate sales.

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

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DTN WEEKLY DDG SPOT PRICES

CURRENT PREVIOUS
COMPANY STATE 11/13/2015 11/6/2015 CHANGE
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $135 $135 $0
Modified $65 $65 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $125 $128 -$3
Indiana Dry $125 $122 $3
Iowa Dry $120 $120 $0
Michigan Dry $130 $128 $2
Minnesota Dry $110 $110 $0
North Dakota Dry $110 $110 $0
New York Dry $130 $135 -$5
South Dakota Dry $118 $118 $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 $120 $120 $0
Iowa Dry $115 $115 $0
Michigan Dry $130 $125 $5
Minnesota Dry $115 $115 $0
Missouri Dry $135 $130 $5
Ohio Dry $125 $125 $0
South Dakota Dry $115 $115 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $128 $128 $0
Wet $50 $50 $0
Illinois Dry $140 $140 $0
Nebraska Dry $128 $128 $0
Wet $50 $50 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $125 $125 $0
Indiana Dry $125 $130 -$5
Iowa Dry $115 $115 $0
Michigan Dry $125 $130 -$5
Minnesota Dry $115 $115 $0
Nebraska Dry $130 $125 $5
New York Dry $150 $150 $0
North Dakota Dry $130 $130 $0
Ohio Dry $130 $130 $0
South Dakota Dry $115 $115 $0
Wisconsin Dry $117 $117 $0
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry $125 $125 $0
Iowa Dry $110 $115 -$5
Minnesota Dry $105 $110 -$5
Nebraska Dry $140 $130 $10
Ohio Dry $135 $135 $0
South Dakota Dry $105 $110 -$5
Western Milling, Goshen, California (559-302-1074)
California Dry $180 $180 $0
*Prices listed per ton.
Weekly Average $123 $123 $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.

*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 11/12/2015 $3.6200 $129.29
Soybean Meal 11/12/2015 $291.40
DDG Weekly Average Spot Price $123.00
DDG Value Relative to: 11/13 11/6 10/30
Corn 95.14% 91.96% 88.42%
Soybean Meal 42.21% 41.50% 39.79%
Cost Per Unit of Protein:
DDG $4.92 $4.92 $4.80
Soybean Meal $6.13 $6.24 $6.35
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 (Nov 6, 2015)

Dried Modified Wet
FOB PLANT PRICES PER TON
Iowa 105.00-120.00 53.00-60.00 35.00-41.00
Minnesota 100.00-117.00 50.00 32.00-40.00
Nebraska 100.00-130.00 54.50-66.00 47.00-55.00
South Dakota 107.00-115.50 60.00-63.00 35.00-40.00
Wisconsin 110.00-125.00 48.00-60.00 NQ
Eastern Corn Belt 110.00-150.00 55.00-60.00 NQ
Kansas 125.00-150.00 NQ 48.00-60.00
Northern Missouri 125.00-135.00 NQ 40.00-44.00
DELIVERED PRICES PER TON
CIF NOLA 156.00-168.00
Pacific Northwest 173.00-180.00
California 177.00-182.00
Texas Border (metric ton) 190.00-210.00
Lethbridge AB 150.00-160.00
Chicago 136.00-145.00

Dried Distillers Grain: 10% Moisture

Modified Wet Distillers: 50-55% Moisture

Wet Distillers Grains: 65-70% Moisture

CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Nov 10, 2015)

Distillers Dry Grains

  Rail to California Points          180.00-183.00    unch-dn 2.00
  FOB Truck to California Points     178.00-186.00    unch-up 1.00

PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Nov 10, 2015)

Offers for Distillers Dried Grains delivered in October by rail to feed mills in the Pacific Northwest were steady from 178.00-180.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were steady from 195.00-196.00.

*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

July 2015 - September 2015

Nov 2, 2015

Highlights:

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.91 million tons during September 2015, down 3 percent from August 2015 and down 5 percent from July 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.17 million tons in September 2015, up 1 percent from August 2015 and up 2 percent from July 2015.

Wet mill corn gluten feed production was 312.5 thousand tons during September 2015, down 9 percent from August 2015 and down 6 percent from July 2015. Wet corn gluten feed 40 to 60 percent moisture was 286.6 thousand tons in September 2015, down 1 percent from August 2015 and down 9 percent from July 2015.

Co-products and Products Jul 2015 Aug 2015 Sept 2015
Dry Mill tons
Condensed distillers solubles (CDS-syrup) 149,927 156,262 156,935
Corn oil 125,497 121,810 117,622
Distillers dried grains (DDG) 450,829 452,969 420,458
Distillers dried grains with solubles (DDGS) 2,000,851 1,961,145 1,907,470
Modified distillers wet grains (DWG) <65% moisture 1,137,600 1,151,297 1,165,422
Modified distillers wet grains (DWG) 40-64% moisture 350,460 341,837 369,209
Wet Mill
Corn germ meal 68,528 66,563 56,106
Corn gluten feed 333,828 343,476 312,543
Corn gluten meal 97,130 96,072 86,522
Corn oil 53,364 52,514 42,605
Wet corn gluten feed 40-60% moisture 315,090 290,652 286,615

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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

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.

(CZ/AG)

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