DDG Weekly Update

DDG Prices Lower

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
Connect with Mary:
DTN's average weekly spot price for DDG was higher the past week at $108 per ton. (DTN file photo by Elaine Shein)

The DTN average DDG spot price was $1 per ton lower for the week ended Nov. 3 at $107 with price declines ranging from $1 to $15 per ton. Of the 37 locations from which DTN collects spot prices, 13 were lower, three were higher than the prior week, and the balance of the prices were unchanged. Merchandisers noted it has been a quiet week so far and prices in some areas drifted lower after last week's rally. Informa Economics said toxin levels in Eastern Corn Belt supplies "continues to be an issue, keeping prices two-tiered with higher toxin material being discounted."

CIF NOLA (New Orleans, Louisiana) prices were lower for the week ended Nov. 3 with November prices down 7 cents to down 4 cents vs. one week ago and are at 145 to 151. There is less buying interest in the Gulf and prices have edged lower, reported Informa. "The lighter buying interest suggests that there could be a modest setback in prices over the next several days. Steady demand from poultry and swine buyers has prevented supplies from being overly burdensome."

There is still no word on any changes to Vietnam's decision to ban U.S. DDG imports in the middle of December after live beetles were found in a shipment. The U.S. Grains Council has said they are currently in talks with Vietnam to establish protocols to deal with the beetles going forward and find a resolution favorable to continue U.S. DDG imports into the country. A merchandiser told DTN there has been plenty of product loaded and shipped to Vietnam ahead of the possible ban, so the impact may not be as bad for the market the rest of this year should the ban become a reality.

The value of DDG relative to corn for the week ended Nov. 3 was higher at 86.09% vs. 84.59% the prior week and the value of DDG relative to soybean meal was higher at 34.92% vs.32.97% the prior week. The cost per unit of protein for DDG was lower at $4.28 vs. $4.32 the prior week, compared to the cost per unit of protein for soybean meal which was higher at $6.45 vs. $6.90 the prior week.

CURRENT PREVIOUS
COMPANY STATE 11/3/2016 10/27/2016 CHANGE
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $120 $120 $0
Modified $62 $63 -$1
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $105 $115 -$10
Indiana Dry $105 $110 -$5
Iowa Dry $105 $107 -$2
Michigan Dry $115 $120 -$5
Minnesota Dry $98 $98 $0
North Dakota Dry $105 $100 $5
New York Dry $115 $130 -$15
South Dakota Dry $100 $95 $5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $105 $110 -$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $112 $110 $2
Iowa Dry $100 $100 $0
Michigan Dry $112 $112 $0
Minnesota Dry $95 $95 $0
Missouri Dry $120 $115 $5
Ohio Dry $115 $115 $0
South Dakota Dry $95 $95 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $118 $118 $0
Wet $40 $40 $0
Illinois Dry $125 $125 $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 $112 $112 $0
Iowa Dry $105 $105 $0
Michigan Dry $118 $118 $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 $110 $110 $0
South Dakota Dry $95 $95 $0
Wisconsin Dry $102 $102 $0
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry $100 $105 -$5
Iowa Dry $95 $100 -$5
Minnesota Dry $95 $98 -$3
Nebraska Dry $105 $105 $0
Ohio Dry $120 $125 -$5
South Dakota Dry $90 $95 -$5
California $162 $165 -$3
Western Milling, Goshen, California (559-302-1074)
California Dry $175 $175 $0
*Prices listed per ton.
Weekly Average $107 $108 -$1
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 11/3/2016 $3.4800 $124.29
Soybean Meal 11/3/2016 $306.40
DDG Weekly Average Spot Price $107.00
DDG Value Relative to: 11/3 10/27
Corn 86.09% 84.59%
Soybean Meal 34.92% 32.97%
Cost Per Unit of Protein:
DDG $4.28 $4.32
Soybean Meal $6.45 $6.90
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/)

Mary Kennedy

Mary Kennedy
Connect with Mary: