DDG Weekly Update
DDG Prices Weaker Again
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.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
| 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)
Copyright 2016 DTN/The Progressive Farmer. All rights reserved.
