DDG Weekly Update

DDG Values Firm

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN average weekly DDG spot price was $1 higher for the week ending August 19 at $122 per ton, vs. $121 the prior week. Of the 37 locations DTN collects spot prices from, 12 showed increases from last week, 6 locations reported decreases and the balance of the prices were unchanged. A merchandiser told DTN that a pick-up in demand in the rail and export markets helped keep DDG values were steady to firm.

CIF NOLA bids were mostly higher Friday compared to one week ago with August and September up 2 to 4 cents at $160 to $168 per ton. Nearby container yard bids were higher as spot buying interest has improved. U.S. Grains Council noted that USDA's latest report on trade data showed exports of U.S. distiller's dried grains with solubles (DDGS) to all countries were up 6% this marketing year, ending Aug. 30. "If this pace continues, the export tally for the year should approach 12 million metric tons, near a record set during the 2013/2014 marketing year."

DDG prices are staying in line with lower corn and soybean meal prices and are actually competitive enough to remain in feed rations. A merchandiser told DTN buyers are looking for forward prices, but he is isn't willing to book out too far yet. Others reported that most of the buying interest seen right now is for spot purchases.

The EIA reported Wednesday that U.S. ethanol production was at 1,029,000 barrels per day for the week ending August 12, which was equal to the record set in mid-July. Ethanol stocks were down slightly, but Informa Economics reported that historically high weekly ethanol production continues to pressure margins with central Illinois at $0.19 per gallon as of August 10. The continued high production levels also adds more DDG supplies and, in some areas, can pressure spot prices.

The value of DDG relative to corn for the week ending August 19 was lower vs. the prior week at 102.20% and the value of DDG relative to soybean meal was slightly higher at 36.97% vs. 36.24% last week. The cost per unit of protein for DDG was slightly higher at $4.88 vs. the prior week of $4.84, compared to the cost per unit of protein for soybean meal at $6.95, which was lower vs. the prior week of $7.03.

WEEKLY DDG PRICES

CURRENT PREVIOUS
COMPANY STATE 8/18/2016 8/11/2016 CHANGE
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $135 $140 -$5
Modified $65 $65 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $140 $130 $10
Indiana Dry $130 $125 $5
Iowa Dry $120 $115 $5
Michigan Dry $135 $130 $5
Minnesota Dry $115 $110 $5
North Dakota Dry $115 $105 $10
New York Dry $125 $120 $5
South Dakota Dry $115 $105 $10
Hawkeye Gold, IA (515-663-6413)
Iowa Dry NA NA #VALUE!
Modified NA NA #VALUE!
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $120 $120 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $125 $128 -$3
Iowa Dry $115 $115 $0
Michigan Dry $120 $120 $0
Minnesota Dry $110 $110 $0
Missouri Dry $135 $135 $0
Ohio Dry $130 $135 -$5
South Dakota Dry $110 $115 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $118 $118 $0
Wet $40 $40 $0
Illinois Dry $145 $145 $0
Nebraska Dry $118 $118 $0
Wet $40 $40 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $125 $130 -$5
Indiana Dry $120 $125 -$5
Iowa Dry $115 $115 $0
Michigan Dry $120 $120 $0
Minnesota Dry $105 $105 $0
Nebraska Dry $110 $110 $0
New York Dry $120 $120 $0
North Dakota Dry $115 $120 -$5
Ohio Dry $120 $120 $0
South Dakota Dry $105 $110 -$5
Wisconsin Dry $115 $115 $0
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry $130 $125 $5
Iowa Dry $110 $110 $0
Minnesota Dry $110 $105 $5
Nebraska Dry $115 $110 $5
Ohio Dry $130 $130 $0
South Dakota Dry $110 $105 $5
California $185 $175 $10
Western Milling, Goshen, California (559-302-1074)
California Dry $185 $185 $0
*Prices listed per ton.
Weekly Average $122 $121 $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.
VALUE OF DDG VS. CORN & SOYBEAN MEAL
Settlement Price: Quote Date Bushel Short Ton
Corn 8/19/2016 $3.3425 $119.38
Soybean Meal 8/19/2016 $330.00
DDG Weekly Average Spot Price $121.00
DDG Value Relative to: 8/19 8/11
Corn 102.20% 105.55%
Soybean Meal 36.97% 36.24%
Cost Per Unit of Protein:
DDG $4.88 $4.84
Soybean Meal $6.95 $7.03
Notes:
Corn and soybean prices take 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.

Mary Kennedy can be reached at Mary.Kennedy@dtn.com

Follow her on Twitter @MaryCKenn

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Mary Kennedy

Mary Kennedy
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