DDG Weekly Update
DDG Prices Steady Prior to China's Ruling
The DTN average DDG spot price was unchanged for the week ended Sept. 22 at $116 per ton. Of the 37 locations from which DTN collects spot prices, two showed slight decreases from the prior week, four showed increases and the balance of the prices were unchanged. A merchandiser told me this is the "heart" of fall maintenance, and it will likely last through the first week of October. Some areas where shutdowns have been taking place did show stronger prices because of the lack of spot supplies.
CIF NOLA prices were higher to unchanged for the week ended Sept. 22 with September prices steady to up 2 cents at $152 to $158 versus the prior week of $150 to $159 per ton, and October steady to up 3 cents at $153 to $158 per ton. Informa Economics did report, "Buying interest for export movement through container yards was stronger as traders were trying to get supplies moving before October and the potential for higher freight rates." Rail tariff rates usually rise in October every year at the start of fall harvest.
In a late development early Friday, Sept. 23, China's Ministry of Commerce, in a preliminary ruling, said the U.S. was dumping distillers dried grains in China, damaging the domestic industry, and will require them to pay a duty. Dow Jones reported that, starting Friday, importers are expected to provide a deposit to the customs in accordance to each company's dumping profit margin, which stands at 33.8%. The ministry didn't say when it would issue a final decision. A DDG broker told me that many exporters had already slowed or stopped their DDG shipments to China since the start of the investigation in January, expecting a duty that would be retroactive to shipments in route.
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U.S. Grains Council issued a statement saying, "We are confident that U.S. DDGS are not being dumped and are not causing or threatening injury to Chinese producers. Our industry deeply appreciated the support that we received at the recent hearing in China from our Chinese customers, and we remain hopeful that MOFCOM will find in its final determination that continued access for U.S. DDGS is in China's interest." Here is a link to their full statement: https://goo.gl/…
The value of DDG relative to corn for the week ending Sept. 22 was lower at 96.45% vs. $100.12% the prior week and the value of DDG relative to soybean meal was lower at 37.67% vs. 38.24% the prior week. The cost per unit of protein for DDG was lower at $4.64, compared to the cost per unit of protein for soybean meal at $6.48, which was 2 cents lower versus the prior week of $6.50.
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 9/22/2016 | 9/15/2016 | 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 | $125 | $120 | $5 | |
| Iowa | Dry | $115 | $115 | $0 | |
| Michigan | Dry | $135 | $130 | $5 | |
| Minnesota | Dry | $105 | $105 | $0 | |
| North Dakota | Dry | $110 | $110 | $0 | |
| New York | Dry | $145 | $130 | $15 | |
| South Dakota | Dry | $105 | $105 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $120 | $118 | $2 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $125 | $125 | $0 | |
| Iowa | Dry | $115 | $115 | $0 | |
| Michigan | Dry | $120 | $120 | $0 | |
| 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 | $120 | $0 | |
| Indiana | Dry | $120 | $120 | $0 | |
| Iowa | Dry | $112 | $110 | $2 | |
| Michigan | Dry | $120 | $120 | $0 | |
| Minnesota | Dry | $102 | $105 | -$3 | |
| Nebraska | Dry | $108 | $105 | $3 | |
| New York | Dry | $135 | $135 | $0 | |
| North Dakota | Dry | $105 | $105 | $0 | |
| Ohio | Dry | $120 | $120 | $0 | |
| South Dakota | Dry | $100 | $100 | $0 | |
| Wisconsin | Dry | $112 | $115 | -$3 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $115 | $115 | $0 | |
| Iowa | Dry | $105 | $105 | $0 | |
| Minnesota | Dry | $105 | $105 | $0 | |
| Nebraska | Dry | $110 | $110 | $0 | |
| Ohio | Dry | $125 | $125 | $0 | |
| South Dakota | Dry | $100 | $100 | $0 | |
| California | $170 | $170 | $0 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $180 | $175 | $5 | |
| *Prices listed per ton. | |||||
| Weekly Average | $116 | $116 | $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 | 9/22/2016 | $3.3675 | $120.27 |
| Soybean Meal | 9/22/2016 | $307.90 | |
| DDG Weekly Average Spot Price | $116.00 | ||
| DDG Value Relative to: | 9/22 | 9/15/2016 | |
| Corn | 96.45% | 100.12% | |
| Soybean Meal | 37.67% | 38.24% | |
| Cost Per Unit of Protein: | |||
| DDG | $4.64 | $4.72 | |
| Soybean Meal | $6.48 | $6.50 | |
| 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)
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