DTN Distillers Grain Weekly Update

The DTN average DDG spot price was up $2 per ton from one week ago, at $98, for the week ended Feb. 16. Of the 39 locations from which DTN collects spot prices, 11 bids were $2 to $15 higher, two bids were $2 to $5 lower and the balance of the prices were unchanged.

Merchandisers told DTN that buying interest has been firm, for the most part. One merchandiser said as warm weather descends on much of the Midwest, usage may slow. Informa Economics reported forward bookings remain light as buyers expect prices will "remain range-bound near-term given the ongoing ample supply. By the end of March and into April, some slowdown in runtimes due to the spring maintenance season could cause supply to tighten."

CIF NOLA (New Orleans, Louisiana) DDGS prices for the week ended Feb. 16 were down 1 cent to unchanged for February, at $127 to $134; March was down 1 cent to up 1 cent, at $131 to $135. Export demand has been slow, but if demand improves from export destinations, it may cause prices to firm some. "But, without the volume that China took out of the market, the impact on the market will be negligible," reported Informa Economics.

U.S. exports of distillers' dried grains (DDGs) in 2016 fell 10% in 2016, to a level of 11.48 million metric tons, according to data released by the Renewable Fuels Association (RFA). The tariffs imposed by China on imports of U.S. DDGs was, of course, the key factor. "Despite the downturn, it still marked the second highest level of DDGs exports on record," RFA said, "with a total value of $2.19 billion, a 27% fall from 2015 and the lowest in four years."

The Illinois relative price to corn futures is averaging 72% for the month compared to its five-year average of 115%. Meanwhile, the Illinois relative price to soybean meal is 28%. The last time the relative price was this low was in October and November of 2014, according to Informa Economics. "These low relative prices should continue to keep inclusion rates maximized in rations."

			CURRENT	CURRENT
COMPANY	STATE		2/16/2017	2/9/2017	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	$100	$95	$5
	Indiana	Dry	$100	$90	$10
	Iowa	Dry	$100	$90	$10
	Michigan	Dry	$88	$85	$3
	Minnesota	Dry	$97	$90	$7
	North Dakota	Dry	$97	$95	$2
	New York	Dry	$115	$115	$0
	South Dakota	Dry	$97	$90	$7
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	$96	$98	-$2
	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	$110	$105	$5
		Wet	$50	$40	$10
	Illinois	Dry	$115	$100	$15
	Nebraska	Dry	$105	$105	$0
		Wet	$40	$40	$0
U.S. Commodities, Minneapolis, MN (888-293-1640)
	Illinois	Dry	$95	$95	$0
	Indiana	Dry	$90	$90	$0
	Iowa	Dry	$95	$95	$0
	Michigan	Dry	$90	$90	$0
	Minnesota	Dry	$90	$90	$0
	Nebraska	Dry	$100	$100	$0
	New York	Dry	$105	$105	$0
	North Dakota	Dry	$105	$105	$0
	Ohio	Dry	$90	$90	$0
	South Dakota	Dry	$95	$95	$0
	Wisconsin	Dry	$95	$95	$0
Valero Energy Corp., San Antonio, TX (402-932-5901)
	Indiana	Dry	$100	$90	$10
	Iowa	Dry	$100	$100	$0
	Minnesota	Dry	$95	$95	$0
	Nebraska	Dry	$95	$100	-$5
	Ohio	Dry	$100	$100	$0
	South Dakota	Dry	$90	$90	$0
	California		$158	$158	$0
Western Milling, Goshen, California (559-302-1074)
	California	Dry	$172	$172	$0
*Prices listed per ton.
	Weekly Average		$98	$96	$2
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 Mary Kennedy on Twitter @MaryCKenn

(AG)

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