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.
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
| 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. | ||||
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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 |
-----------------------------------------------------------------------
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
DDG LINKS/RESOURCES
Organizations
*Distillers Grains Technology Council
http://www.distillersgrains.org
*National Corn Growers Association Corn Distillers Grains Brochure
*Iowa Corn
Nebraska Corn Board
*Renewable Fuels Association - Ethanol Co-Products
*American Coalition for Ethanol
*U.S. Grains Council
*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
*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
*University of Nebraska Extension
*Iowa Beef Center - Iowa State University
http://www.iowabeefcenter.org/…
*University of Missouri - Byproducts Resource Page
*South Dakota State University - Dairy Science Department - Dairy cattle research
(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)
-----------------------------------------------------------------------
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).
-----------------------------------------------------------------------
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)
(AG)
Copyright 2015 DTN/The Progressive Farmer. All rights reserved.
