DTN Weekly Distillers Grains Update

USDA Report, Slow Demand Continue to Push DDG Prices Downward

Increased corn acre expectations and slow export demand pushed DDG prices to continue on a six-week downward trend.

The DTN Weekly DDG Spot Price average fell $4 per ton in the past week, from $122 per ton last week to $118 this week. This is the sixth consecutive week the average has fallen, from $140 per ton in late February to this week's average of $118. This is also the lowest point the average has reached since mid-October 2015.

Of the 36 Midwestern locations DTN collects spot prices from, an overwhelming percentage of merchandisers reported price decreases in the past week. A total of 28 locations reported price decreases between $1 and $10 per ton, though declines were in the $3 to $6 per ton range.

Merchandisers told DTN the March 31 USDA Prospective Plantings report lowered DDG prices. The National Agricultural Statistics Service predicted 2016 corn acreage at 93.6 million acres for this growing season, up 6% from last year. This would be the third highest amount of corn acres planted in the U.S. since 1944.

Before the report, prices of DDG had been following soybean prices up slightly, but the report, along with high corn stocks, pushed down prices of corn. Since DDG prices typically follow the corn board, prices of DDG fell as well.

Export demand is still slow, merchandisers reported.

Ethanol plants have been hesitant to put on many forward sales, since they have been operating at negative margins and didn't want the loss. However, with the onset of the second quarter, many plants have been running stronger and now realize they have a lot of DDG to sell, so more supplies are on the market.

The value of DDG relative to corn rose very slightly in the past week, from about 92% last week to about 93% this week. The value of DDG relative to soybean meal fell slightly, from about 44% last week to about 43% this week.

The cost per unit of protein for DDG was at about $4.72 this week, compared to the cost per unit of soybean meal at $5.73.

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

Follow Cheryl Anderson on Twitter @CherylADTN

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DTN WEEKLY DDG SPOT PRICES

CURRENT PREVIOUS
COMPANY STATE 4/1/2016 3/25/2016 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 $123 $128 -$5
Indiana Dry $118 $125 -$7
Iowa Dry $115 $120 -$5
Michigan Dry $120 $130 -$10
Minnesota Dry $105 $110 -$5
North Dakota Dry $110 $110 $0
New York Dry $125 $135 -$10
South Dakota Dry $110 $110 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $125 $130 -$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $117 $120 -$3
Iowa Dry $114 $115 -$1
Michigan Dry $118 $122 -$4
Minnesota Dry $115 $115 $0
Missouri Dry $130 $134 -$4
Ohio Dry $119 $124 -$5
South Dakota Dry $117 $119 -$2
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $127 $132 -$5
Wet $50 $50 $0
Illinois Dry $133 $133 $0
Nebraska Dry $127 $132 -$5
Wet $50 $50 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $117 $125 -$8
Indiana Dry $120 $120 $0
Iowa Dry $110 $115 -$5
Michigan Dry $120 $120 $0
Minnesota Dry $110 $115 -$5
Nebraska Dry $120 $125 -$5
New York Dry $125 $145 -$20
North Dakota Dry $115 $120 -$5
Ohio Dry $118 $124 -$6
South Dakota Dry $110 $110 $0
Wisconsin Dry $115 $118 -$3
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry $118 $122 -$4
Iowa Dry $115 $118 -$3
Minnesota Dry $112 $114 -$2
Nebraska Dry $122 $125 -$3
Ohio Dry $122 $130 -$8
South Dakota Dry $108 $110 -$2
Western Milling, Goshen, California (559-302-1074)
California Dry $180 $188 -$8
*Prices listed per ton.
Weekly Average $118 $122 -$4
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 4/1/2016 $3.5400 $126.43
Soybean Meal 4/1/2016 $272.30
DDG Weekly Average Spot Price $118.00
DDG Value Relative to: 4/1 3/25 3/18
Corn 93.33% 92.32% 94.22%
Soybean Meal 43.33% 44.32% 46.44%
Cost Per Unit of Protein:
DDG $4.72 $4.88 $4.96
Soybean Meal $5.73 $5.80 $5.62
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 (Mar 25, 2016)

Dried Modified Wet
FOB PLANT PRICES PER TON
Iowa 115.00-128.00 51.00-65.00 38.00-40.00
Minnesota 115.00-120.00 55.00 36.00-40.00
Nebraska 118.00-137.00 60.00-70.00 49.00-55.00
South Dakota 113.00-127.50 60.00-68.50 40.00-44.00
Wisconsin 115.00-130.00 50.00-60.00 NQ
Eastern Corn Belt 120.00-138.00 62.00-65.00 NQ
Kansas 130.00-153.00 NQ 45.00-56.00
Northern Missouri 135.00-144.00 NQ 41.00-49.00
DELIVERED PRICES PER TON
CIF NOLA 145.00-152.00
Pacific Northwest 172.00-177.00
California 174.00-182.00
Texas Border (metric ton) 185.00-200.00
Lethbridge AB 148.00
Chicago 128.00-136.00

Dried Distillers Grain: 10% Moisture

Modified Wet Distillers: 50-55% Moisture

Wet Distillers Grains: 65-70% Moisture

CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Mar 29, 2016)

Distillers Dry Grains

  Rail to California Points          180.00-186.00    unch
  FOB Truck to California Points     188.00-196.00    unch-up 4.00

PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Mar 29, 2016)

Offers for Distillers Dried Grains delivered by rail to feed mills in the Pacific Northwest were steady to 2.00 lower from 178.00-190.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were steady to 2.00 lower from 196.00-205.00.

*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

January 2016 - February 2016

April 1, 2016

Highlights:

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.80 million tons during February 2016, down 4 percent from January 2016 but up 11 percent from February 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.25 million tons in February 2016, down 5 percent from January 2016 and down 2 percent from February 2015.

Wet mill corn gluten feed production was 312.0 thousand tons during February 2016, down 3 percent from January 2016 but up 10 percent from February 2015. Wet corn gluten feed 40 to 60 percent moisture was 277.4 thousand tons in February 2016, down 5 percent from January 2016 but up 1 percent from February 2015.

Co-products and Products Jan 2015 Dec 2015 Jan 2016
Dry Mill tons
Condensed distillers solubles (CDS-syrup) 128,0271 133,919 122,291
Corn oil 95,268 124,541 123,806
Distillers dried grains (DDG) 405,025 383,131 367,436
Distillers dried grains with solubles (DDGS) 1,622,467 1,869,722 1,795,472
Modified distillers wet grains (DWG) <65% moisture 1,268,244 1,311,155 1,247,751
Modified distillers wet grains (DWG) 40-64% moisture 418,698 449,256 401,370
Wet Mill
Corn germ meal 48,546 63,787 65,123
Corn gluten feed 283,990 321,956 312,012
Corn gluten meal 80,955 87,266 83,643
Corn oil 41,020 445,976 46,490
Wet corn gluten feed 40-60% moisture 274,763 291,882 277,434

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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, 2016 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.

(AG/CZ)