DDG Weekly Update
DDG Prices Weaker on Average
The DTN average weekly DDG spot price was down $1 for the week ended September 8 at $118 per ton. Of the 37 locations from which DTN collects spot prices, five showed decreases of $2 to $5 from the prior week, seven showed increases of $4 to $8 and the balance of the prices were unchanged. Prices were mostly steady for the week and merchandisers told DTN some plants are preparing for fall maintenance shutdown.
Shutdowns usually last for three days and will likely begin next week and be scattered into early October, which may give spot prices a firm tone going forward as supplies may tighten. However ethanol plants will likely try to keep downtimes to a minimum as margins remain favorable. Informa Economics reported that central Illinois margins were estimated at $0.32 per gallon as of August 31, which is the highest they have been since mid-July.
CIF NOLA prices were steady to higher for the week ended September 8 with September prices unchanged at $155 to $160 per ton and October 2 cents higher at $155 to %162 per ton. July export results were reported to be 11% lower than one year ago compared to the same month last year, likely due to uncertainty related to the soon-to-be-announced decision by China regarding their anti-dumping duty on DDGS this month, which could have a negative impact on U.S. trade. "For the time being, the outcome of the antidumping case is that the U.S. has managed to develop more markets for their distillers grains, which for the long run, should be supportive for increasing exports," reported Informa Economics.
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The value of DDG relative to corn for the week ending September 8 was lower at $101.04% vs. the prior week at 107.54% and the value of DDG relative to soybean meal was lower at 36.30% vs. the prior week at 38.01%. The cost per unit of protein for DDG was lower at $4.72 vs. the prior week at $4.76, compared to the cost per unit of protein for soybean meal at $6.84, which was higher vs. the prior week of $6.59.
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 9/8/2016 | 9/1/2016 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $125 | $130 | -$5 | |
| Modified | $65 | $65 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $125 | $130 | -$5 | |
| Indiana | Dry | $120 | $125 | -$5 | |
| Iowa | Dry | $115 | $118 | -$3 | |
| Michigan | Dry | $130 | $132 | -$2 | |
| Minnesota | Dry | $105 | $105 | $0 | |
| North Dakota | Dry | $110 | $105 | $5 | |
| New York | Dry | $130 | $122 | $8 | |
| South Dakota | Dry | $105 | $105 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $120 | $120 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $130 | $125 | $5 | |
| Iowa | Dry | $114 | $110 | $4 | |
| Michigan | Dry | $115 | $115 | $0 | |
| Minnesota | Dry | $110 | $105 | $5 | |
| Missouri | Dry | $130 | $130 | $0 | |
| Ohio | Dry | $125 | $125 | $0 | |
| South Dakota | Dry | $110 | $105 | $5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $118 | $118 | $0 | |
| Wet | $40 | $40 | $0 | ||
| Illinois | Dry | $135 | $135 | $0 | |
| Nebraska | Dry | $118 | $118 | $0 | |
| Wet | $40 | $40 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $130 | $130 | $0 | |
| Indiana | Dry | $125 | $125 | $0 | |
| Iowa | Dry | $115 | $115 | $0 | |
| Michigan | Dry | $125 | $125 | $0 | |
| Minnesota | Dry | $110 | $110 | $0 | |
| Nebraska | Dry | $105 | $105 | $0 | |
| New York | Dry | $125 | $125 | $0 | |
| North Dakota | Dry | $115 | $115 | $0 | |
| Ohio | Dry | $125 | $125 | $0 | |
| South Dakota | Dry | $105 | $105 | $0 | |
| Wisconsin | Dry | $115 | $115 | $0 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $120 | $120 | $0 | |
| Iowa | Dry | $110 | $110 | $0 | |
| Minnesota | Dry | $110 | $110 | $0 | |
| Nebraska | Dry | $115 | $115 | $0 | |
| Ohio | Dry | $130 | $130 | $0 | |
| South Dakota | Dry | $105 | $105 | $0 | |
| California | $175 | $175 | $0 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $185 | $181 | $4 | |
| *Prices listed per ton. | |||||
| Weekly Average | $118 | $119 | $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. | |||||
| VALUE OF DDG VS. CORN & SOYBEAN MEAL | |||
| Settlement Price: | Quote Date | Bushel | Short Ton |
| Corn | 9/8/2016 | $3.2700 | $116.79 |
| Soybean Meal | 9/8/2016 | $325.10 | |
| DDG Weekly Average Spot Price | $118.00 | ||
| DDG Value Relative to: | 9/8 | 9/1/2016 | |
| Corn | 101.04% | 107.14% | |
| Soybean Meal | 36.30% | 38.01% | |
| Cost Per Unit of Protein: | |||
| DDG | $4.72 | $4.76 | |
| Soybean Meal | $6.84 | $6.59 | |
| 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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