DTN Weekly Distillers Grains Update
DDG Price Decline Slows as Corn Prices Rise
The significant declines in distillers dried grains prices seen in recent weeks seem to have slowed somewhat this week, as the corn board rose slightly.
The DTN weekly DDG spot price average fell another $4 per ton in the past week, from $142 per ton last week to $138 this week. This is the fourth consecutive week that the spot price average has decreased, falling $30 in that time period -- from $168 per ton in mid-June to $138 per ton this week. This is the lowest level the average has reached since early May. In each of the three weeks prior to this week, the average spot price fell between $6 and $12.
Of the 36 Midwestern locations DTN collects spot prices from, a total of 15 locations reported to DTN that their spot prices had decreased between $3 per ton and $15 per ton in the past week, although most price changes were in the $5 to $10 per ton range. Prices at 15 locations remained unchanged since last week, while only three locations increased prices $5 each.
Most merchandisers told DTN that with corn prices rising too much and too fast, followed by prices falling too much and too fast, this week's slowdown in the DDG price decreases is likely just a market correction, trying to find a bottom as far as prices are concerned. The slowdown may also be from ethanol plants attempting to realign their prices with the changing market.
The corn board increase this week causing DDG prices to slow their price decline, since DDG prices tend to mirror movement in corn, bean and meal prices, as all compete for places in livestock rations. Some merchandisers, however, thought that DDG prices may experience a little uptick in reaction to corn prices in coming days, bringing a little firmer numbers.
Domestic demand has been steady. The market has not seen a lot of new demand on the export side.
There has been some Chinese DDG purchasing, but merchandisers told DTN that Chinese buyers are only purchasing about a month out in case the country's anti-dumping DDG investigation against the U.S. ends with tariffs being instituted on DDG exports to China.
There is some talk that a big meeting is being held in early August and that a decision on the investigation and possible tariffs will be announced following that meeting.
The value of DDG relative to corn this week fell substantially, from about 119% last week to about 107% this week. This gives DDG a much better value and is the lowest percentage since mid-June. The value of DDG relative to soybean meal fell only slightly in the past week, from about 38% last week to about 36% this week.
The cost per unit of protein for DDG was about $5.52 this week, down slightly from $5.68 last week. The cost per unit of protein for soybean meal rose slightly, from about $7.79 last week to about $8.03 this week.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com
Follow Cheryl Anderson on Twitter @CherylADTN
-----------------------------------------------------------------------
NEWS IN BRIEF
Ethanol Exports Fall, While DDGS Exports Grow
During the month of May, exports of U.S. ethanol fell to 55.7 million gallons, a 42% drop from April and a nine-month low. However, exports of U.S. distillers dried grains with solubles saw a substantial increase, according to an article on the Refined Fuels Association website (http://bit.ly/…).
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
The RFA reports that monthly ethanol exports have only fallen twice in the past two years.
Exports of DDGS increased for the third month in a row, rising 20% to 1.06 million metric tons. RFA credits the majority of that growth to export volumes to China nearly doubling from April to May. In fact, in May, China imported nearly 292,000 metric tons of DDGS in May, approximately 27% of total exports.
Exports of DDGS also increased in May to Mexico, who purchased 158,702 metric tons. Approximately half of the remaining DDGS exports were sent to 29 countries, with the largest buyers being Vietnam, South Korea, Thailand and Canada.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
-----------------------------------------------------------------------
DTN WEEKLY DDG SPOT PRICES
*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.
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 7/15/2016 | 7/8/2016 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $155 | $170 | -$15 | |
| Modified | $67 | $70 | -$3 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $145 | $145 | $0 | |
| Indiana | Dry | $145 | $145 | $0 | |
| Iowa | Dry | $140 | $145 | -$5 | |
| Michigan | Dry | $150 | $150 | $0 | |
| Minnesota | Dry | $125 | $130 | -$5 | |
| North Dakota | Dry | $125 | $130 | -$5 | |
| New York | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $120 | $120 | $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 | $155 | $165 | -$10 | |
| Iowa | Dry | $130 | $140 | -$10 | |
| Michigan | Dry | $140 | $155 | -$15 | |
| Minnesota | Dry | $125 | $130 | -$5 | |
| Missouri | Dry | $145 | $145 | $0 | |
| Ohio | Dry | $160 | $165 | -$5 | |
| South Dakota | Dry | $130 | $135 | -$5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $135 | $130 | $5 | |
| Wet | $40 | $40 | $0 | ||
| Illinois | Dry | $160 | $160 | $0 | |
| Nebraska | Dry | $135 | $130 | $5 | |
| Wet | $40 | $40 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $155 | $150 | $5 | |
| Indiana | Dry | $145 | $145 | $0 | |
| Iowa | Dry | $135 | $138 | -$3 | |
| Michigan | Dry | $150 | $150 | $0 | |
| Minnesota | Dry | $130 | $130 | $0 | |
| Nebraska | Dry | $120 | $125 | -$5 | |
| New York | Dry | $155 | $155 | $0 | |
| North Dakota | Dry | $130 | $130 | $0 | |
| Ohio | Dry | $145 | $145 | $0 | |
| South Dakota | Dry | $125 | $125 | $0 | |
| Wisconsin | Dry | $140 | $140 | $0 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $145 | $150 | -$5 | |
| Iowa | Dry | $130 | $140 | -$10 | |
| Minnesota | Dry | $130 | $135 | -$5 | |
| Nebraska | Dry | $125 | $135 | -$10 | |
| Ohio | Dry | $150 | $160 | -$10 | |
| South Dakota | Dry | $125 | $130 | -$5 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $198 | $195 | $3 | |
| *Prices listed per ton. | |||||
| Weekly Average | $138 | $142 | -$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. | |||||
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 | 7/14/2016 | $3.6225 | $129.38 | |
| Soybean Meal | 7/14/2016 | $381.30 | ||
| DDG Weekly Average Spot Price | $138.00 | |||
| DDG Value Relative to: | 7/8 | 7/1 | 6/24 | |
| Corn | 106.67% | 118.51% | 120.20% | |
| Soybean Meal | 36.19% | 38.38% | 38.00% | |
| Cost Per Unit of Protein: | ||||
| DDG | $5.52 | $5.68 | $6.16 | |
| Soybean Meal | $8.03 | $7.79 | $8.53 | |
| 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 (July 7, 2016)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 120.00-160.00 | 49.00-75.00 | 34.00-42.00 |
| Minnesota | 142.00-150.00 | 63.00 | 32.00-45.00 |
| Nebraska | 125.00-150.00 | 55.00-70.00 | 32.00-45.00 |
| South Dakota | 125.00-140.00 | 55.00-65.00 | 36.00-40.00 |
| Wisconsin | 142.00-175.00 | 68.00 | NQ |
| Eastern Corn Belt | 142.00-165.00 | 66.00-75.00 | NQ |
| Kansas | 140.00-170.00 | NQ | 45.00-55.00 |
| Northern Missouri | 160.00-170.00 | 69.00 | 45.00-49.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 165.00-180.00 | ||
| Pacific Northwest | 179.00-187.00 | ||
| California | 175.00-195.00 | ||
| Texas Border (metric ton) | 195.00-210.00 | ||
| Lethbridge AB | 150.00 | ||
| Chicago | 155.00-170.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue July 12, 2016)
Distillers Dry Grains
Rail to California Points Ltd 190.00 dn 8.00
FOB Truck to California Points 190.00-205.00 unch
PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue July 12, 2016)
Offers for Distillers Dried Grains delivered by rail to feed mills in the Pacific Northwest were steady to 10.00 lower from 183.00-218.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were also steady to 10.00 lower from 201.00-233.00.
*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
April 2016 - May 2016
July 1, 2016
Highlights:
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.84 million tons during May 2016, up 7 percent from April 2016 but down 1 percent from May 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.23 million tons in May 2016, down 2 percent from April 2016 and down 10 percent from May 2015.
Wet mill corn gluten feed production was 333 thousand tons during May 2016, up 9 percent from April 2016 but down 4 percent from May 2015. Wet corn gluten feed 40 to 60 percent moisture was 306 thousand tons in May 2016, up 2 percent from April 2016 but down 5 percent from May 2015.
| Co-products and Products | May 2015 | Apr 2016 | May 2016 |
| Dry Mill | tons | ||
| Condensed distillers solubles (CDS-syrup) | 148,757 | 130,324 | 131,318 |
| Corn oil | 117,049 | 111,077 | 121,699 |
| Distillers dried grains (DDG) | 418,448 | 374,750 | 411,467 |
| Distillers dried grains with solubles (DDGS) | 1,861,795 | 1,717,024 | 1,842,182 |
| Modified distillers wet grains (DWG) <65% moisture | 1,368,926 | 1,264,745 | 1,234,315 |
| Modified distillers wet grains (DWG) 40-64% moisture | 414,956 | 429,972 | 425,532 |
| Wet Mill | |||
| Corn germ meal | 69,274 | 67,530 | 63,859 |
| Corn gluten feed | 348,355 | 306,464 | 332,975 |
| Corn gluten meal | 97,139 | 84,916 | 88,177 |
| Corn oil | 53,208 | 51,455 | 50,262 |
| Wet corn gluten feed 40-60% moisture | 323,436 | 301,283 | 306,424 |
-----------------------------------------------------------------------
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)
-----------------------------------------------------------------------
DDG CONFERENCES
*Distillers Grains Technology Council Inc.'s 21th Annual Distillers Grains Symposium
The Distillers Grains Technology Council will hold its 21st Annual Distillers Grains Symposium on May 17-18, 2017 at the downtown Marriott in Indianapolis, IN. 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).
-----------------------------------------------------------------------
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/)
Copyright 2016 DTN/The Progressive Farmer. All rights reserved.
