DDG Weekly Update
DDG Prices Lower
The DTN average DDG spot price was $1 per ton lower for the week ended Nov. 10 at $106 with price declines ranging from $2 to $5 per ton. Of the 37 locations from which DTN collects spot prices, 10 were lower, two were higher than the prior week, and the balance of the prices were unchanged. DDG trading has been light this week and end users seem willing to hold off on making forward purchases and buying hand-to-mouth, partially due to the cheaper cash corn price this week on the heels of a bearish USDA WADSE report. On top of that, some merchandisers told DTN that runtimes have been steady, which is keeping most plants with a good supply of DDG. Those plants that told me supply is tight have kept prices firm this past week.
CIF NOLA (New Orleans, Louisiana) DDGS prices were lower for the week ended Nov. 10 with November prices down 5 cents to down 3 cents vs. one week ago and are at 140 to 148. Prices for December are the same price currently bid for November. There is still nothing new to report on Vietnam's decision to ban U.S. DDG imports in the middle of December, but many in the market say they aren't feeling the outcome will be positive.
USDA recently reported that total feed grains exports in September were up nearly 34% from September 2015. U.S Grains council pointed out that not every product category experienced an increase in September. "Exports of distillers' dried grains with solubles (DDGS) decreased 14% from the same time last year, from more than 1.15 million metric tons to 990,000 metric tons. This was due largely to reduced sales to China, last year's top market."
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The value of DDG relative to corn for the week ended Nov. 10 was higher at 86.40% vs. 86.09% the prior week and the value of DDG relative to soybean meal was lower at 34.04% vs. 34.92% the prior week. The cost per unit of protein for DDG was lower at $4.24 vs. $4.28 the prior week, compared to the cost per unit of protein for soybean meal which was higher at $6.56 vs. $6.45 the prior week.
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 11/10/2016 | 11/3/2016 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $120 | $120 | $0 | |
| Modified | $62 | $62 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $105 | $105 | $0 | |
| Indiana | Dry | $105 | $105 | $0 | |
| Iowa | Dry | $105 | $105 | $0 | |
| Michigan | Dry | $110 | $115 | -$5 | |
| Minnesota | Dry | $98 | $98 | $0 | |
| North Dakota | Dry | $100 | $105 | -$5 | |
| New York | Dry | $110 | $115 | -$5 | |
| South Dakota | Dry | $95 | $100 | -$5 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $110 | $105 | $5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $112 | $112 | $0 | |
| Iowa | Dry | $100 | $100 | $0 | |
| Michigan | Dry | $110 | $112 | -$2 | |
| Minnesota | Dry | $95 | $95 | $0 | |
| Missouri | Dry | $120 | $120 | $0 | |
| Ohio | Dry | $112 | $115 | -$3 | |
| 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 | $110 | $115 | -$5 | |
| Indiana | Dry | $110 | $112 | -$2 | |
| Iowa | Dry | $100 | $105 | -$5 | |
| Michigan | Dry | $115 | $118 | -$3 | |
| Minnesota | Dry | $95 | $95 | $0 | |
| Nebraska | Dry | $105 | $100 | $5 | |
| 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 | $100 | $0 | |
| Iowa | Dry | $95 | $95 | $0 | |
| Minnesota | Dry | $95 | $95 | $0 | |
| Nebraska | Dry | $105 | $105 | $0 | |
| Ohio | Dry | $120 | $120 | $0 | |
| South Dakota | Dry | $90 | $90 | $0 | |
| California | $162 | $162 | $0 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $175 | $175 | $0 | |
| *Prices listed per ton. | |||||
| Weekly Average | $106 | $107 | -$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 | 11/10/2016 | $3.4350 | $122.68 |
| Soybean Meal | 11/10/2016 | $311.40 | |
| DDG Weekly Average Spot Price | $106.00 | ||
| DDG Value Relative to: | 11/11 | 11/3 | |
| Corn | 86.40% | 86.09% | |
| Soybean Meal | 34.04% | 34.92% | |
| Cost Per Unit of Protein: | |||
| DDG | $4.24 | $4.28 | |
| Soybean Meal | $6.56 | $6.45 | |
| 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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