DDG Weekly Update

DDG Prices Lower

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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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. 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."

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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Mary Kennedy

Mary Kennedy
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