DTN Weekly Distillers Grains Update

Rising Corn, Meal Prices Push DDG Prices Up Slightly

Increases in corn and soybean meal prices pushed prices of distillers dried grains up just slightly since last week.

The DTN weekly spot price average rose $1 per ton in the past week, from $123 per ton last week to $124 per ton this week. This is the third consecutive week the average has increased, rising from $116 per ton on April 15 to this week's average of $124 per ton. This is also the highest point the average has reached since mid-March.

Of the 36 Midwestern locations from which DTN collects spot prices, 16 locations increased their prices between $2 per ton and $10 per ton, though most increases were in the $2 to $5 per-ton range. Only two locations reported price decreases of $2 and $5, while spot prices at 12 locations remained unchanged since last week. Spot prices from six locations were unavailable this week.

Merchandisers told DTN that the slight upturn in prices was due largely to the aftereffects of rallies in the corn and soybean meal boards two weeks ago. Prices of DDG tend to mirror movement in prices of corn and soybean meal, since all three compete for a place in livestock rations.

The small increases in DDG prices were also fueled by some renewed export interest. Export demand has picked up to some degree, however, it is still not nearly what it was a year ago. Domestic demand remains good, with some merchandisers reporting some tight supplies through May.

The value of DDG relative to corn this week was at about 89%, down from last week's 93%. The value of DDG relative to soybean meal was also down this week, from about 39% last week to about 37% this week.

The cost per unit of protein for DDG was at about $4.96, compared to the cost per unit of protein for soybean meal at $6.99.

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

Follow Cheryl Anderson on Twitter @CherylADTN

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IN THE NEWS

USGC Report Reveals Feed Opportunities in Colombia

Market opportunities for U.S. coarse grains and co-products such as distillers dried grains are likely to expand significantly faster than previously anticipated, according to an article by the U.S. Grains Council (http://bit.ly/…).

The Council recently released its Outlook Colombia 2030 report which revealed faster market growth than historical trends suggested.

According to Council President and CEO Tom Sleight, the report showed a bullish potential for U.S. feed grain and DDG exports to Colombia. Colombia's corn imports alone are projected to reach 5.5 million metric tons in 2020 and 7.8 mmt by 2030.

Sleight said the bullish outlook is due largely to increased meat consumption from the country's middle class. That increase in meat demand will force Colombia's livestock industry to increase production by more than 50% from the country's 2014 production. With little growth in Colombia's crop production, livestock producers will need to rely largely on feed imports to support expansion.

The Council has been working in Colombia more than 25 years in efforts to build demand from the country's poultry and swine industries. The U.S. faces strong competition from countries such as Brazil, Paraguay, Uruguay and Venezuela. Argentina will also be a strong competitor because of its recent elimination of export taxes on agricultural commodities.

However, the U.S. has an advantage of the free trade agreement with Colombia that has resulted in increased exports there. The Council hopes to maintain and expand the country's demand for U.S. coarse grains and co-products.

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DTN WEEKLY DDG SPOT PRICES

. . . CURRENT PREVIOUS
COMPANY STATE 4/29/2016 4/22/2016 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 $135 $140 -$5
Indiana Dry $132 $130 $2
Iowa Dry $125 $125 $0
Michigan Dry $132 $130 $2
Minnesota Dry $115 $115 $0
North Dakota Dry $115 $115 $0
New York Dry $135 $135 $0
South Dakota Dry $115 $115 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $128 $125 $3
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $122 $118 $4
Iowa Dry $120 $120 $0
Michigan Dry $115 $112 $3
Minnesota Dry $115 $115 $0
Missouri Dry $135 $135 $0
Ohio Dry $128 $122 $6
South Dakota Dry $115 $117 -$2
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $130 $127 $3
Wet $50 $50 $0
Illinois Dry $140 $133 $7
Nebraska Dry $130 $127 $3
Wet $50 $50 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $135 $130 $5
Indiana Dry $130 $125 $5
Iowa Dry $120 $115 $5
Michigan Dry $125 $125 $0
Minnesota Dry $115 $112 $3
Nebraska Dry $125 $125 $0
New York Dry $140 $135 $5
North Dakota Dry $125 $125 $0
Ohio Dry $130 $120 $10
South Dakota Dry $120 $115 $5
Wisconsin Dry $128 $120 $8
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry NA $125 $0
Iowa Dry NA $115 $0
Minnesota Dry NA $115 $0
Nebraska Dry NA $125 $0
Ohio Dry NA $130 $0
South Dakota Dry NA $110 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $185 $185 $0
*Prices listed per ton.
Weekly Average $124 $123 $1
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 4/29/2016 $3.9025 $139.38
Soybean Meal 4/29/2016 $332.10
DDG Weekly Average Spot Price $124.00
DDG Value Relative to: 4/29 4/22 4/15
Corn 88.97% 92.64% 86.84%
Soybean Meal 37.34% 39.46% 39.99%
Cost Per Unit of Protein:
DDG $4.96 $4.92 $4.64
Soybean Meal $6.99 $6.56 $6.11
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 (Apr 15, 2016)

Dried Modified Wet
FOB PLANT PRICES PER TON
Iowa 105.00-128.00 50.00-60.00 36.00-38.00
Minnesota 109.00-112.00 55.00 34.00-40.00
Nebraska 108.00-140.00 56.00-71.00 44.00-53.00
South Dakota 102.00-124.50 56.00-67.00 35.00-43.00
Wisconsin 115.00-125.00 50.00-60.00 NQ
Eastern Corn Belt 110.00-140.00 59.00-63.00 40.00
Kansas 125.00-145.00 NQ 45.00-54.00
Northern Missouri 125.00-134.00 63.00 40.00-42.00
DELIVERED PRICES PER TON
CIF NOLA 145.00-158.00
Pacific Northwest 174.00-175.00
California 177.00-185.00
Texas Border (metric ton) 190.00-205.00
Lethbridge AB 152.00
Chicago 132.00-146.00

Dried Distillers Grain: 10% Moisture

Modified Wet Distillers: 50-55% Moisture

Wet Distillers Grains: 65-70% Moisture

CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Apr 26, 2016)

Distillers Dry Grains

  Rail to California Points           178.00-180.00    up 8.00-10.00
  FOB Truck to California Points      188.00           up 14.00-3.00

PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Apr 26, 2016)

Offers for Distillers Dried Grains delivered by rail to feed mills in the Pacific Northwest were 5.00 to 7.00 higher from 117800-185.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were also 5.00 to 7.00 higher from 196.00-200.00.

*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% from January 2016 but up 11% from February 2015. Distillers wet grains (DWG) 65% or more moisture was 1.25 million tons in February 2016, down 5% from January 2016 and down 2% from February 2015.

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

National Organizations:

Distillers Grains Technology Council (www.distillersgrains.org)

Renewable Fuels Association (www.ethanolrfa.org)

U.S. Grains Council (www.grains.org)

National Corn Growers Association (www.ngfa.org)

American Feed Industry Association (www.afia.org)

Government/Regulatory:

National Grains and Feed Association (www.ngfa.org)

Association of American Feed Control Officials (www.aafco.org)

USDA Animal Feed Safety System (http://1.usa.gov/…)

USDA Food Safety Modernization Act (http://1.usa.gov/…)

University Websites:

Corn Processing Coproducts Manual, Nebraska Corn Board and Nebraska Corn Board and the University of Nebraska-Lincoln Institute of Agriculture and Natural Resources Agricultural Research Division Cooperative Extension Division (http://bit.ly/…)

University of Minnesota Biofuels Coproducts in Animal Feed (www.biofuelscoproducts.umn.edu)

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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.

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