DDG Weekly Update

DDG Prices Weaker Again

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for DDG fell $2 in the past week. (DTN file photo by Elaine Shein)

The DTN average DDG spot price was down $2 for the week ended September 15 at $116 per ton. Of the 37 locations from which DTN collects spot prices, 18 showed decreases of $2 to $10 from the prior week, two showed increases and the balance of the prices were unchanged. A merchandiser told DTN the market has been quiet, but prices have drifted a little lower in places. He added there was a pick-up in nearby export demand during the week, however nothing major and the market may remain flat for a while. On top of that, there is plenty of supply of other competing feed ingredients, which could keep pressure on DDG prices. Another merchandiser told DTN a handful of plants took their fall shutdown during this week and another handful will take time off in the coming week.

CIF NOLA prices were lower for the week ended September 15 with September prices down 5 cents to down 1 cent at $150 to $159 per ton and October down 5 cents to down 4 cents at $150 to $158 per ton. A merchandiser told DTN that demand for export continues to wane for new crop. There is still no word on the decision by China regarding their anti-dumping duty on U.S. DDGS. We may not see anything until next week as China is on holiday, celebrating their Mid-Autumn Festival, a harvest celebration that falls on the 15th day of the eighth month of the Chinese lunar calendar.

The value of DDG relative to corn for the week ending September 15 was lower at 100.12% vs. $101.04% the prior week and the value of DDG relative to soybean meal was higher at 38.24% vs. 36.30% vs. the prior week. The cost per unit of protein for DDG was unchanged at $4.72, compared to the cost per unit of protein for soybean meal at $6.50, which was lower vs. the prior week of $6.84.

CURRENT PREVIOUS
COMPANY STATE 9/15/2016 9/8/2016 CHANGE
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $125 $125 $0
Modified $65 $65 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $125 $125 $0
Indiana Dry $120 $120 $0
Iowa Dry $115 $115 $0
Michigan Dry $130 $130 $0
Minnesota Dry $105 $105 $0
North Dakota Dry $110 $110 $0
New York Dry $130 $130 $0
South Dakota Dry $105 $105 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $118 $120 -$2
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $125 $130 -$5
Iowa Dry $115 $114 $1
Michigan Dry $120 $115 $5
Minnesota Dry $110 $110 $0
Missouri Dry $130 $130 $0
Ohio Dry $125 $125 $0
South Dakota Dry $110 $110 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $125 $125 $0
Wet $40 $40 $0
Illinois Dry $135 $135 $0
Nebraska Dry $125 $125 $0
Wet $40 $40 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $120 $130 -$10
Indiana Dry $120 $125 -$5
Iowa Dry $110 $115 -$5
Michigan Dry $120 $125 -$5
Minnesota Dry $105 $110 -$5
Nebraska Dry $105 $105 $0
New York Dry $135 $125 $10
North Dakota Dry $105 $115 -$10
Ohio Dry $120 $125 -$5
South Dakota Dry $100 $105 -$5
Wisconsin Dry $115 $115 $0
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry $115 $120 -$5
Iowa Dry $105 $110 -$5
Minnesota Dry $105 $110 -$5
Nebraska Dry $110 $115 -$5
Ohio Dry $125 $130 -$5
South Dakota Dry $100 $105 -$5
California $170 $175 -$5
Western Milling, Goshen, California (559-302-1074)
California Dry $175 $185 -$10
*Prices listed per ton.
Weekly Average $116 $118 -$2
The weekly average prices above reflect only those companies from which DTN
collects spot prices. 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 9/15/2016 $3.3000 $117.86
Soybean Meal 9/15/2016 $308.60
DDG Weekly Average Spot Price $116.00
DDG Value Relative to: 9/15 9/8/2016
Corn 100.12% 101.04%
Soybean Meal 38.24% 36.30%
Cost Per Unit of Protein:
DDG $4.72 $4.72
Soybean Meal $6.50 $6.84
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

(CZ/SK)

Mary Kennedy

Mary Kennedy
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