DTN Weekly Distillers Grains Update
DDG Prices Steady as Market Awaits China Decision
Prices of dried distillers grains continued on a steady trend once again this week, with a market described as "dead" by some merchandisers. Some in the industry are still waiting to see if China makes any announcements about instituting import duties right before Christmas, which has become its custom.
The DTN weekly DDG spot price average remained unchanged in the past week at $122 per ton. The average has hovered between $116 and $123 since late September, continuing on a steady trend.
Of the 36 Midwestern locations from which DTN collects spot prices, 22 locations reported their prices remained unchanged since last week. Spot prices at nine locations increased between $1 and $5 per ton, while only five locations reported price decreases between $2 and $5 per ton.
Merchandisers told DTN this week that there was some spot buying going on, but little other action. While grateful for the lack of volatility, some merchandisers predicted the steady trend to continue and reported that forward prices into January, February and March have also been fairly flat.
Part of the reason for the slow buying could be that the market is waiting for any announcements from China, which was rumored to be considering adding an import duty on any DDG coming into the country.
While there has been no news yet, China seems to have made a habit of waiting until Christmas time the past two years to blast U.S. DDG sellers with some type of market-altering news. On Dec. 28, 2010, China announced its anti-dumping probe against the U.S. that caused trade disruption and price volatility in coming years. In late 2013, China began rejecting shipments of U.S. DDG after finding the presence of MIR 162, causing prices to fall to the lowest levels in two years.
While not bad news, China announced on Dec. 22, 2014, it had formally approved imports of corn and DDG with the MIR 162 trait, continuing with its tradition of springing huge news right before Christmas.
On the other hand, if China does not add the import duty on DDG, that announcement could open up more buying from Chinese buyers, which could raise DDG prices, though it likely would not be by a huge amount.
The value of DDG relative to corn this week was at about 90.55%, down slightly from last week's 92.26%, and 94.10% two weeks ago. The value of DDG value relative to soybean meal was about 44.49%, slightly higher than last week's value of 42.49%.
The cost per unit of protein for DDG was $4.88 this week, compared to the cost per unit of protein for soybean meal at $5.77.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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IN THE NEWS
U.S. Grains Council Consults with Saudi Arabian Grain Buyers
A recent trip to Saudi Arabia gave members of the U.S. Grains Council an opportunity to educate Saudi grain buyers on the value of dried distillers grains with solubles as a nutritious and low-cost feed ingredient.
According to an article by the USGC (http://bit.ly/…), Nabeel Salameh, the USGC's local consultant in Saudi Arabia, joined with Diaa Ghaly, director of business development at MIRASCO, and Sean Mulford, DDGS merchandiser at Agniel Commodities. The team met with representatives of eight Saudi feed manufacturers, processing facilities and dairy and poultry producers.
Since DDGS is underused in Saudi Arabia, even among those who have been importing it, the team focused on how to substitute DDGS for a part of the corn in livestock rations, lowering the price of the ration, while still maintaining nutritional content.
In 2011, DDGS was included on Saudi Arabia's subsidy list, which is critical for importers purchasing commodities. Since then, the council has worked to build confidence in U.S. DDGS and providing information to Saudi buyers regarding U.S. grains markets and handling systems, as well as feed formulations.
While corn imports in the Middle East and North Africa are facing competition from other markets such as Ukraine, Brazil and Argentina, U.S. DDGS are a benefit to Saudi buyers in that they are easily available and well-priced.
The council's long-term strategy is for more visits to Saudi Arabia to continue promoting corn co-products such as DDGS and corn gluten meal. The regional outreach program will continue in December with a trip to Egypt for consultations with local feed manufacturers and poultry producers.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com
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DTN WEEKLY DDG SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 12/11/2015 | 12/4/2015 | 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 | $125 | $0 | |
| Indiana | Dry | $125 | $125 | $0 | |
| Iowa | Dry | $118 | $122 | -$4 | |
| Michigan | Dry | $130 | $128 | $2 | |
| Minnesota | Dry | $110 | $110 | $0 | |
| North Dakota | Dry | $110 | $110 | $0 | |
| New York | Dry | $135 | $135 | $0 | |
| South Dakota | Dry | $110 | $110 | $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 | $124 | $120 | $4 | |
| Iowa | Dry | $112 | $110 | $2 | |
| Michigan | Dry | $125 | $130 | -$5 | |
| Minnesota | Dry | $105 | $110 | -$5 | |
| Missouri | Dry | $130 | $130 | $0 | |
| Ohio | Dry | $125 | $125 | $0 | |
| South Dakota | Dry | $113 | $115 | -$2 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $130 | $130 | $0 | |
| Wet | $50 | $50 | $0 | ||
| Illinois | Dry | $140 | $140 | $0 | |
| Nebraska | Dry | $130 | $130 | $0 | |
| Wet | $50 | $50 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $130 | $130 | $0 | |
| Indiana | Dry | $125 | $125 | $0 | |
| Iowa | Dry | $115 | $115 | $0 | |
| Michigan | Dry | $125 | $125 | $0 | |
| Minnesota | Dry | $115 | $115 | $0 | |
| Nebraska | Dry | $130 | $125 | $5 | |
| New York | Dry | $145 | $145 | $0 | |
| North Dakota | Dry | $130 | $130 | $0 | |
| Ohio | Dry | $125 | $125 | $0 | |
| South Dakota | Dry | $115 | $115 | $0 | |
| Wisconsin | Dry | $115 | $114 | $1 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $125 | $125 | $0 | |
| Iowa | Dry | $115 | $110 | $5 | |
| Minnesota | Dry | $110 | $105 | $5 | |
| Nebraska | Dry | $130 | $125 | $5 | |
| Ohio | Dry | $130 | $135 | -$5 | |
| South Dakota | Dry | $110 | $108 | $2 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $185 | $185 | $0 | |
| *Prices listed per ton. | |||||
| Weekly Average | $122 | $122 | $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 | 12/10/2015 | $3.7725 | $134.73 | |
| Soybean Meal | 12/10/2015 | $274.20 | ||
| DDG Weekly Average Spot Price | $122.00 | |||
| DDG Value Relative to: | 12/11 | 12/4 | 11/27 | |
| Corn | 90.55% | 92.26% | 94.10% | |
| Soybean Meal | 44.49% | 42.49% | 43.19% | |
| Cost Per Unit of Protein: | ||||
| DDG | $4.88 | $4.92 | $4.92 | |
| Soybean Meal | $5.77 | $6.04 | $6.00 | |
| 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 (Dec 4, 2015)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 110.00-128.00 | 50.00-60.00 | 34.00-42.00 |
| Minnesota | 110.00-120.00 | 55.00 | 32.00-40.00 |
| Nebraska | 120.00-143.00 | 60.00-71.00 | 47.00-54.00 |
| South Dakota | 107.00-120.50 | 60.00-68.50 | 36.00-40.00 |
| Wisconsin | 115.00-120.00 | 50.00-60.00 | NQ |
| Eastern Corn Belt | 118.00-155.00 | 55.00-60.00 | NQ |
| Kansas | 130.00-165.00 | NQ | 48.00-62.00 |
| Northern Missouri | 130.00-145.00 | NQ | 42.00-44.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 154.00-160.00 | ||
| Pacific Northwest | 176.00-178.00 | ||
| California | 176.00-188.00 | ||
| Texas Border (metric ton) | 190.00-205.00 | ||
| Lethbridge AB | 154.00 | ||
| 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 Dec 8, 2015)
Distillers Dry Grains
Rail to California Points 175.00-185.00 dn 5.00-up 2.00
FOB Truck to California Points 178.00-186.00 unch
PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Dec 8, 2015)
Offers for Distillers Dried Grains delivered in October by rail to feed mills in the Pacific Northwest were 2.00 to 3.00 lower from 180.00-183.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were 2.00 to 3.00 lower at 198.00.
*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
September 2015 - October 2015
Dec 1, 2015
Highlights:
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.95 million tons during October 2015, up 2 percent from September 2015 and up 5 percent from October 2014. Distillers wet grains (DWG) 65 percent or more moisture was 1.23 million tons in October 2015, up 5 percent from September 2015 but down 8 percent from October 2014.
Wet mill corn gluten feed production was 326.1 thousand tons during October 2015, up 4 percent from September 2015 and up 2 percent from October 2014. Wet corn gluten feed 40 to 60 percent moisture was 297.0 thousand tons in October 2015, up 4 percent from September 2015 but down 7 percent from October 2014.
| Co-products and Products | Oct 2014 | Sept 2015 | Oct 2015 |
| Dry Mill | tons | ||
| Condensed distillers solubles (CDS-syrup) | 149,960 | 156,935 | 145,649 |
| Corn oil | 107,516 | 117,622 | 128,337 |
| Distillers dried grains (DDG) | 420,226 | 420,458 | 438,027 |
| Distillers dried grains with solubles (DDGS) | 1,856,472 | 1,907,470 | 1,953,850 |
| Modified distillers wet grains (DWG) <65% moisture | 1,333,264 | 1,165,422 | 1,226,333 |
| Modified distillers wet grains (DWG) 40-64% moisture | 413,040 | 369,209 | 386,299 |
| Wet Mill | |||
| Corn germ meal | 78,674 | 56,106 | 62,784 |
| Corn gluten feed | 320,692 | 312,543 | 326,055 |
| Corn gluten meal | 92,665 | 86,522 | 83,213 |
| Corn oil | 47,405 | 42,605 | 48,676 |
| Wet corn gluten feed 40-60% moisture | 320,919 | 286,615 | 296,954 |
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
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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)
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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.
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