DDG Weekly Update

DDG Prices Mixed in Quiet Trade

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for DDG was lower at $106 the past week. (DTN file photo by Elaine Shein)

The DTN average DDG spot price was $2 per ton lower for the week ended Oct. 13 at $106 per ton with price drops ranging from $2 to $13 per ton. Of the 37 locations from which DTN collects spot prices, two locations showed an increase, 19 were unchanged from the prior week, and the balance of the prices were lower. Demand from end users remains slow while supplies are expected to stay ample. Without much forward buying activity currently, it appears supplies will remain heavy and prevent prices from climbing, unless corn or soybean meal futures should move higher and stay that way for a while.

A merchandiser told me there wasn't much change in the market and prices were bouncing around. He said that BNSF product seems to be cheaper and Minnesota lower, as export demand is still slow. Another told me that he was sold up through November and another said he was sold up for October and his plant would be going down for fall maintenance. The bulk of the fall maintenance shutdowns should be finished before the last week of October. As plants come back on line, merchandisers expect DDG supplies to build, which could pressure prices.

Informa Economics reported, "In the Eastern Corn Belt the concerns with toxins are keeping sellers from selling much forward supply as they do not want to over commit on sales. This has created a 2-tier market with high-toxin supply trading at discounts. Some merchants are anticipating that the corn toxin situation will be less of an issue over time as some of the early planted corn supply works through supply channels. In Western Corn Belt markets some sellers have a several-dollar premium for forward months, but processors are not willing to participate at such levels. They are willing to wait in hopes of seasonal price strength during the 4th quarter."

CIF NOLA (New Orleans, Louisiana) prices were lower for the week ended Oct. 13 with October prices down six cents to down five cents at $134 to $139.

CURRENT PREVIOUS
COMPANY STATE 10/13/2016 10/6/2016 CHANGE
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $120 $120 $0
Modified $63 $63 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $102 $115 -$13
Indiana Dry $108 $110 -$2
Iowa Dry $100 $105 -$5
Michigan Dry $118 $125 -$7
Minnesota Dry $90 $100 -$10
North Dakota Dry $90 $100 -$10
New York Dry $125 $130 -$5
South Dakota Dry $90 $100 -$10
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $110 $110 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $115 $120 -$5
Iowa Dry $95 $100 -$5
Michigan Dry $112 $112 $0
Minnesota Dry $95 $100 -$5
Missouri Dry $115 $115 $0
Ohio Dry $115 $120 -$5
South Dakota Dry $95 $100 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $118 $118 $0
Wet $40 $40 $0
Illinois Dry $130 $130 $0
Nebraska Dry $118 $118 $0
Wet $40 $40 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $115 $115 $0
Indiana Dry $115 $115 $0
Iowa Dry $105 $105 $0
Michigan Dry $115 $115 $0
Minnesota Dry $95 $95 $0
Nebraska Dry $100 $100 $0
New York Dry $130 $130 $0
North Dakota Dry $105 $105 $0
Ohio Dry $120 $120 $0
South Dakota Dry $100 $100 $0
Wisconsin Dry $110 $110 $0
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry $100 $100 $0
Iowa Dry $95 $100 -$5
Minnesota Dry $90 $95 -$5
Nebraska Dry $100 $95 $5
Ohio Dry $120 $115 $5
South Dakota Dry $90 $90 $0
California $153 $152 $1
Western Milling, Goshen, California (559-302-1074)
California Dry $170 $175 -$5
*Prices listed per ton.
Weekly Average $106 $108 -$2
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 10/13/2016 $3.4950 $124.82
Soybean Meal 10/13/2016 $299.80
DDG Weekly Average Spot Price $108.00
DDG Value Relative to: 10/13 10/6
Corn 84.92% 88.81%
Soybean Meal 35.36% 35.82%
Cost Per Unit of Protein:
DDG $4.24 $4.32
Soybean Meal $6.31 $6.35
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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