DTN Distillers Grain Weekly Update

DDG Prices Steady

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for DDG was unchanged at $95 per ton. (DTN file photo by Elaine Shein)

The DTN average DDG spot price was unchanged from one week ago at $95 for the week ended Feb. 2. Of the 39 locations from which DTN collects spot prices, four bids were lower and the balance of the prices were unchanged.

California prices were $5 per ton lower as weather has finally improved, which has helped logistics to improve. Informa Economics said that "Markets have been quiet with fewer buyers in the market as most poultry buyers were at their industry meeting. The poultry sector has been a significant buyer of supply out of the Eastern Corn Belt and DDGS prices remain competitive and should be able to defend its place in feed rations.

The average prices collected by Informa Economics for the month of January were lower with Illinois down $14.55 per ton, Indiana down $15.79, Iowa down $4.24, Nebraska down $2.86, Minnesota down $3.33, rail delivered to Chicago down $20.83 and CIF NOLA down $14.10 per ton.

CIF NOLA (New Orleans, Louisiana) DDGS prices for the week ended Feb. 2 were unchanged to up 4 cents for February at $124 to $131 and March is at $126 to $132. In its January 2017 Thailand Grain and Feed Update released January 18, USDA FAS stated that the increase in Thailand's DDG imports has prompted the Thai government to introduce new restrictions on DDG imports. Thailand already had a 9% tariff on DDG imports. In addition, DDG imports now must include a phytosanitary certificate. "This came three months after Vietnam announced it would suspend the import of U.S. distillers' dried grains and shortly after China set its final duties on US DDGs. While all three occurrences could just be a coincidence, it seems unlikely," said Informa Economics.

The value of DDG relative to corn for the week ended Feb. 2 was lower at 72.38% vs. 73.13% the prior week. The value of DDG relative to soybean meal was higher at 28.46% versus 27.75% the prior week. The cost per unit of protein for DDG was unchanged at $3.80 compared to the cost per unit of protein for soybean meal which was lower at $7.03 vs. $7.21 the prior week.

CURRENT CURRENT
COMPANY STATE 2/2/2017 1/26/2017 CHANGE
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $122 $122 $0
Modified $60 $60 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $95 $95 $0
Indiana Dry $90 $90 $0
Iowa Dry $85 $85 $0
Michigan Dry $85 $85 $0
Minnesota Dry $85 $85 $0
North Dakota Dry $95 $95 $0
New York Dry $110 $110 $0
South Dakota Dry $90 $90 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $105 $105 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $90 $90 $0
Iowa Dry $100 $100 $0
Michigan Dry $90 $90 $0
Minnesota Dry $95 $95 $0
Missouri Dry $115 $115 $0
Ohio Dry $90 $90 $0
South Dakota Dry $98 $98 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $105 $105 $0
Wet $40 $40 $0
Illinois Dry $100 $100 $0
Nebraska Dry $105 $105 $0
Wet $40 $40 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $85 $85 $0
Indiana Dry $80 $80 $0
Iowa Dry $95 $95 $0
Michigan Dry $80 $80 $0
Minnesota Dry $85 $85 $0
Nebraska Dry $100 $100 $0
New York Dry $105 $105 $0
North Dakota Dry $105 $105 $0
Ohio Dry $80 $80 $0
South Dakota Dry $90 $90 $0
Wisconsin Dry $95 $95 $0
Valero Energy Corp., San Antonio, TX (402-932-5901)
Indiana Dry $90 $90 $0
Iowa Dry $100 $105 -$5
Minnesota Dry $95 $95 $0
Nebraska Dry $100 $105 -$5
Ohio Dry $100 $100 $0
South Dakota Dry $90 $90 $0
California $160 $165 -$5
Western Milling, Goshen, California (559-302-1074)
California Dry $172 $177 -$5
*Prices listed per ton.
Weekly Average $95 $95 $0

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 2/2/2017 $3.6750 $131.25
Soybean Meal 2/2/2017 $333.80
DDG Weekly Average Spot Price $95.00
DDG Value Relative to: 2/1 1/26
Corn 72.38% 73.13%
Soybean Meal 28.46% 27.75%
Cost Per Unit of Protein:
DDG $3.80 $3.80
Soybean Meal $7.03 $7.21
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

(SK)

Mary Kennedy

Mary Kennedy
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