DDG Weekly Update

DDG Prices Slightly Weaker

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for DDG was down $1 at $104 per ton. (DTN file photo by Elaine Shein)

The DTN average DDG spot price was down $1 per ton for the week ended Dec. 8 at $104 with price declines ranging from $3 to $10 per ton. Of the 37 locations from which DTN collects spot prices, seven were lower, two were higher than the prior week, and the balance of the prices were unchanged.

Merchandisers told DTN that the market prices were "sideways" and that the market was flat, lacking any "exciting news." However, the cold snap over most of the country may help the market with an increase in feed intakes. Informa Economics reported, "Quality issues continue to be an issue in Eastern markets and has resulted in steeper discounts for off-spec supplies. Trades made through January are limited and done at prices even to the nearby. Before the holidays there is modest risk for prices to rally provided spot supplies tighten, but that seems unlikely given good ethanol margins and strong runtimes."

CIF NOLA (New Orleans, Louisiana) DDGS prices for the week ended Dec. 8 are at $144 for the latter part of December and January prices are unchanged to $1 lower at $140-$146. The U.S. Census Bureau said Tuesday U.S. exports of distillers grains totaled 1.005 million metric tons in October, down 3% from a year ago. Mexico was the top export destination in October, accounting for 13% of total exports with China and Vietnam a close second and third. So far in 2016, U.S. exports of distillers grains are down 11% from a year ago. As of December 17, Vietnam will no longer import U.S. DDGs as they had threatened doing in a statement at the end of October. A merchandiser told me that it may be until mid-January when they are able to meet with APHIS to discuss a resolution. The Dec. 10 winter closure looms on the Mississippi River at Lock and Dam 10, in Guttenberg, Iowa, and Dec. 13 at Locks 15, 16 and 17. DDGs heading south will need to look at other modes of transportation from the UMR areas until spring.

The value of DDG relative to corn for the week ended Dec. 8 was higher at 84.04% vs. 83.88% the prior week and the value of DDG relative to soybean meal was higher at 33.29% vs. 32,89% the prior week. The cost per unit of protein for DDG was at $4.16 compared to the cost per unit of protein for soybean meal which was at $6.58.

VALUE OF DDG VS. CORN & SOYBEAN MEAL
Settlement Price: Quote Date Bushel Short Ton
Corn 12/8/2016 $3.4650 $123.75
Soybean Meal 12/8/2016 $312.40
DDG Weekly Average Spot Price $104.00
DDG Value Relative to: 12/8 12/1 11/23
Corn 84.04% 83.88% 84.62%
Soybean Meal 33.29% 32.89% 33.50%
Cost Per Unit of Protein:
DDG $4.16 $4.20 $4.24
Soybean Meal $6.58 $6.72 $6.66
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.
CURRENT CURRENT
COMPANY STATE 12/8/2016 12/1/2016 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 $100 $105 -$5
Indiana Dry $100 $105 -$5
Iowa Dry $100 $105 -$5
Michigan Dry $100 $110 -$10
Minnesota Dry $95 $98 -$3
North Dakota Dry $100 $100 $0
New York Dry $110 $110 $0
South Dakota Dry $95 $95 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $110 $110 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $100 $100 $0
Iowa Dry $100 $100 $0
Michigan Dry $100 $100 $0
Minnesota Dry $95 $95 $0
Missouri Dry $120 $120 $0
Ohio Dry $95 $100 -$5
South Dakota Dry $100 $100 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $115 $115 $0
Wet $40 $40 $0
Illinois Dry $122 $122 $0
Nebraska Dry $115 $115 $0
Wet $40 $40 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $110 $110 $0
Indiana Dry $105 $105 $0
Iowa Dry $100 $100 $0
Michigan Dry $105 $110 -$5
Minnesota Dry $95 $95 $0
Nebraska Dry $104 $102 $2
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 $105 $100 $5
Valero Energy Corp., San Antonio, TX (402-727-5300) 402-932-5901) 402-932-5901)
Indiana Dry $100 $100 $0
Iowa Dry $97 $97 $0
Minnesota Dry $95 $95 $0
Nebraska Dry $110 $110 $0
Ohio Dry $120 $120 $0
South Dakota Dry $90 $90 $0
California $164 $164 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $170 $170 $0
*Prices listed per ton.
Weekly Average $104 $105 -$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.

Mary Kennedy can be reached at Mary.Kennedy@dtn.com

Follow her on Twitter @MaryCKenn

(AG)

Mary Kennedy

Mary Kennedy
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