DDG Weekly Update

DDG Prices Mixed; Average Remains Steady

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

The DTN average dried distillers grains, or DDG, spot price was unchanged from one week ago, at $95, for the week ended May 5. Of the 39 locations from which DTN collects spot prices, nine bids were $2 to $5 higher, three bids were $2 to $5 lower, and the balance of the prices were unchanged.

The value of DDG relative to corn, based on those bids for the week ended May 5, was at 74.30% and the value of DDG relative to soybean meal was at 30.24%. The cost per unit of protein for DDG was at $3.80, compared to the cost per unit of protein for soybean meal, which was at $6.61.

DDG prices were mixed this week with end-user demand slow. Prices in the upper Midwest were slightly higher at some locations as maintenance downtimes and runtime issues have caused some plants to quote a higher spot price. Barge offers rose as the flooding in St. Louis and on the Illinois River disrupted barge movement on the entire river system for at least the rest of this week. South of St. Louis, barge movement has stopped as the U.S. Coast Guard closed the river until water levels retreat. Informa Economics noted, "By next week, availability should improve and the price increase is more a function of supply rather than there being any increase in export demand. The concern is that once runtimes improve, by the end of the month, prices are apt to soften in order to attract additional demand."

CIF NOLA (New Orleans, Louisiana) dried distillers grains with solubles, or DDGS, prices for the week ended May 5 were unchanged for April at $125. May prices were down 1 cent to up 1 cents at $123 to $125. The Census Bureau reported that U.S. exports of distillers grains totaled 1,029,111 metric tons in March, up 25% from a year ago. Turkey was the top export destination in March, accounting for 19% of total exports and with Mexico a close second. In the first three months of 2017, exports of U.S. distillers grains were up 26% from a year ago. "Thursday's report continued to show U.S. exports doing well, even with lighter purchases from China, and was slightly bullish for distillers grains," said DTN Market Analyst Todd Hultman.

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

Follow Mary Kennedy on Twitter @MaryCKenn

CURRENT PREVIOUS CHANGE
COMPANY STATE 5/4/2017 4/27/2017
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $120 $120 $0
Modified $60 $60 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $95 $95 $0
Indiana Dry $95 $95 $0
Iowa Dry $92 $92 $0
Michigan Dry $90 $90 $0
Minnesota Dry $90 $90 $0
North Dakota Dry $90 $90 $0
New York Dry $130 $130 $0
South Dakota Dry $90 $90 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $98 $98 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $97 $95 $2
Iowa Dry $95 $93 $2
Michigan Dry $97 $95 $2
Minnesota Dry $95 $93 $2
Missouri Dry $112 $110 $2
Ohio Dry $94 $92 $2
South Dakota Dry $94 $92 $2
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $103 $105 -$2
Wet $45 $45 $0
Illinois Dry $105 $105 $0
Nebraska Dry $103 $105 -$2
Wet $45 $35 $10
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $100 $100 $0
Indiana Dry $90 $90 $0
Iowa Dry $95 $95 $0
Michigan Dry $95 $95 $0
Minnesota Dry $85 $85 $0
Nebraska Dry $95 $95 $0
New York Dry $120 $120 $0
North Dakota Dry $92 $92 $0
Ohio Dry $98 $98 $0
South Dakota Dry $85 $85 $0
Wisconsin Dry $90 $90 $0
Valero Energy Corp., San Antonio, TX (402-932-5901)
Indiana Dry $90 $85 $5
Iowa Dry $95 $90 $5
Minnesota Dry $90 $90 $0
Nebraska Dry $100 $105 -$5
Ohio Dry $95 $95 $0
South Dakota Dry $85 $85 $0
California $152 $155 -$3
Western Milling, Goshen, California (559-302-1074)
California Dry $166 $166 $0
*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 5/4/2017 $3.5800 $127.86
Soybean Meal 5/4/2017 $314.10
DDG Weekly Average Spot Price $95.00
DDG Value Relative to: 5/4 4/27
Corn 74.30% 73.48%
Soybean Meal 30.24% 30.59%
Cost Per Unit of Protein:
DDG $3.80 $3.80
Soybean Meal $6.61 $6.54
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

(CZ)

Mary Kennedy

Mary Kennedy
Connect with Mary: