DTN Weekly Distillers Grains Update

DDG Prices Remain Steady for Fourth Week

Dried distillers grains prices remained steady this week amid quiet trade.

The DTN weekly DDG spot price average remained unchanged this week at $130 per ton. This is the fourth week the average has remained at $130 per ton, and it has hovered between $126 and $130 for the past nine weeks. This week's average is the highest point reached since the first week of September.

Of the 36 Midwestern locations DTN collects spot prices from, 28 locations reported prices unchanged since last week. Prices at five locations increased between $2 and $5 per ton, while three locations reported price decreases between $2 and $5 per ton.

Merchandisers told DTN Friday the market has been quiet all week with prices not moving up or down. Also, cost insurance and freight (CIF) values have moved up $5-$7 per ton in the past week.

Trade with some countries like China has slowed in recent weeks because of the Chinese New Year celebration, which has now ended.

One merchandiser mentioned that one boatload of DDG has been sold to China, which doesn't necessarily mean China is back in the game. Chinese buyers still seem hesitant to purchase U.S. DDG pending the result of the country's anti-dumping investigation against the U.S., fearing the government will begin instituting additional duties.

The value of DDG relative to corn fell slightly, from about 101% last week to nearly 100% this week. The cost of DDG relative to soybean meal remained steady at 49%.

The cost per unit of protein for DDG was about $5.20 this week, compared to the cost per unit of protein for soybean meal at $5.57.

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

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IN THE NEWS

DDGS Feeding Trials Show No Effect on Fish Fillet Color

Recent feeding trials conducted in Vietnam by the U.S. Grains Council have proved that dried distillers grains with solubles is an economical and nutritious feed for Vietnam's pangasius catfish industry and has no effect on the color of fish fillets, according to a news article on the Council's website (http://bit.ly/…).

The two aqua feeding trials were aimed at showing those in the industry that plant-based proteins such as DDGS and soybean meal can be combined to provide protein in fish diets. In the past, Vietnamese fish feeders were hesitant to feed DDGS to catfish because they feared that xanthophyll, the yellow/brownish plant pigment in DDGS, would turn fish fillets yellow instead of the white color that Asian and U.S. customers prefer.

The trials indicated that DDGS can be used at inclusion rates of up to 15% in aqua diets without any negative effect on fillet yield or color.

Kevin Roepke, USGC regional director for South and Southeast Asia, said the trials found "almost no differences in the color of the fish fillets for catfish fed DDGS over both short and long periods of time."

Roepke added that the Council plans to educate end-users about the results of the trials through seminars, presentations and one-on-one meetings to persuade them to consider using DDGS and corn in their rations.

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

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DTN WEEKLY DDG SPOT PRICES

CURRENT PREVIOUS
COMPANY STATE 2/19/2016 2/12/2016 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 $145 $145 $0
Indiana Dry $137 $137 $0
Iowa Dry $130 $125 $5
Michigan Dry $135 $135 $0
Minnesota Dry $118 $115 $3
North Dakota Dry $125 $125 $0
New York Dry $165 $165 $0
South Dakota Dry $130 $130 $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 $132 $135 -$3
Iowa Dry $122 $122 $0
Michigan Dry $130 $128 $2
Minnesota Dry $119 $119 $0
Missouri Dry $143 $140 $3
Ohio Dry $132 $134 -$2
South Dakota Dry $120 $120 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $130 $130 $0
Wet $50 $50 $0
Illinois Dry $145 $145 $0
Nebraska Dry $130 $130 $0
Wet $50 $50 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $145 $145 $0
Indiana Dry $135 $135 $0
Iowa Dry $120 $120 $0
Michigan Dry $130 $130 $0
Minnesota Dry $120 $120 $0
Nebraska Dry $130 $130 $0
New York Dry $155 $155 $0
North Dakota Dry $125 $125 $0
Ohio Dry $135 $133 $2
South Dakota Dry $120 $125 -$5
Wisconsin Dry $125 $125 $0
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry $130 $130 $0
Iowa Dry $125 $125 $0
Minnesota Dry $120 $120 $0
Nebraska Dry $130 $130 $0
Ohio Dry $140 $140 $0
South Dakota Dry $115 $115 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $190 $185 $5
*Prices listed per ton.
Weekly Average $130 $130 $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 2/19/2016 $3.6550 $130.54
Soybean Meal 2/19/2016 $264.50
DDG Weekly Average Spot Price $130.00
DDG Value Relative to: 2/19 2/12 2/5
Corn 99.59% 101.04% 98.78%
Soybean Meal 49.15% 49.30% 48.58%
Cost Per Unit of Protein:
DDG $5.20 $5.20 $5.20
Soybean Meal $5.57 $5.55 $5.63
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 (Feb 12, 2016)

Dried Modified Wet
FOB PLANT PRICES PER TON
Iowa 119.00-127.00 55.00-65.00 38.00-41.00
Minnesota 115.00-120.00 55.00 36.00-45.00
Nebraska 125.00-138.00 60.00-80.00 49.00-55.00
South Dakota 115.00-127.00 62.00-68.00 40.00-44.00
Wisconsin 118.00-127.00 51.00-60.00 NQ
Eastern Corn Belt 123.00-145.00 62.00-67.00 NQ
Kansas 137.00-155.00 NQ 47.00-63.00
Northern Missouri 135.00-146.00 NQ 44.00-49.00
DELIVERED PRICES PER TON
CIF NOLA 151.00-165.00
Pacific Northwest 170.00-185.00
California 170.00-185.00
Texas Border (metric ton) 190.00-205.00
Lethbridge AB 152.00
Chicago 136.00-150.00

Dried Distillers Grain: 10% Moisture

Modified Wet Distillers: 50-55% Moisture

Wet Distillers Grains: 65-70% Moisture

CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Feb 16, 2016)

Distillers Dry Grains

  Rail to California Points         185.00-195.00  dn 1.00-up 9.00

FOB Truck to California Points 180.00-185.00 dn 5.00-unch

PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Feb 16, 2016)

Offers for Distillers Dried Grains delivered by rail to feed mills in the Pacific Northwest were steady to 3.00 higher from 182.00-190.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were steady to 3.00 higher from 200.00-205.00.

*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

November 2015 - December 2015

Feb. 1, 2016

Highlights:

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.97 million tons during December 2015, up 2 percent from November 2015 and up 3 percent from December 2014. Distillers wet grains (DWG) 65 percent or more moisture was 1.27 million tons in December 2015, up 12 percent from November 2015 but down 10 percent from December 2014.

Wet mill corn gluten feed production was 340.5 thousand tons during December 2015, up 5 percent from November 2015 and up 3 percent from December 2014. Wet corn gluten feed 40 to 60 percent moisture was 307.9 thousand tons in December 2015, up 6 percent from November 2015 but down 9 percent from December 2014.

Co-products and Products Dec 2014 Nov 2015 Dec 2015
Dry Mill tons
Condensed distillers solubles (CDS-syrup) 172,082 124,855 134,196
Corn oil 97,380 130,938 131,811
Distillers dried grains (DDG) 448,551 413,019 423,632
Distillers dried grains with solubles (DDGS) 1,919,823 1,935,499 1,973,279
Modified distillers wet grains (DWG) <65% moisture 1,411,411 1,130,071 1,265,208
Modified distillers wet grains (DWG) 40-64% moisture 503,258 425,499 445,735
Wet Mill
Corn germ meal 75,031 67,645 69,669
Corn gluten feed 329,431 322,741 340,460
Corn gluten meal 94,777 84,505 88,921
Corn oil 44,551 53,597 57,578
Wet corn gluten feed 40-60% moisture 338,077 289,171 307,874

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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 20th Annual Distillers Grains Symposium

The Distillers Grains Technology Council will hold its 20th Annual Distillers Grains Symposium on May 18-19, 2015 at the Hyatt Regency at The Arch in St. Louis, 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.

(CZ)