DDG Weekly Update

DDG Prices Unchanged

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for DDG was unchanged, at $102 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 $102, for the week ended June 29. Of the 39 locations from which DTN collects spot prices, seven bids were $1 to $5 higher, one bid was $1 lower and the balance of the prices were unchanged.

Areas where prices were flat to lower the past week was due in part to end users securing supplies ahead of the long July 4 holiday weekend, while areas where prices were a little higher saw more spot demand this past week, according to merchandisers.

A merchandiser noted that markets were steady overall and that plant DDG supplies for the most part would be enough to handle the nearby demand through the holiday. The EIA reported that ethanol production was estimated at 1,015 thousand barrels per day for the week ending June 23, a 25,000-bpd increase over the prior week.

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"Ethanol margins continued to improve, with slightly lower corn prices and higher DDG prices," noted Informa Economics. "The margin in central Illinois was estimated at $0.16 per gallon for June 19. Margins in other locations ranged from $0.04 per gallon to $0.30 per gallon."

Informa Economics reported that if corn production and yields are as expected, adding downward price risk for corn, the price of DDGs may lose the current support. "The overall relative price to CBOT corn currently is 80%. This is lower than the three-year average of 117% and the five-year average price of 111%. Typically, the relative value of corn decreases from June to July. Given the outlook on corn and the softening of soybean prices, it is reasonable to expect distillers dried grains will likely continue to soften."

CIF NOLA (New Orleans, Louisiana) dried distillers grains with solubles, or DDGS, prices for the week ended June 29 were $134 for June, and July prices were at $133 to $136. DDGS exports picked up in June after lower movement in May, which has been supporting prices.

CURRENT PREVIOUS CHANGE
COMPANY STATE 6/29/017 6/22/017
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 $105 $105 $0
Indiana Dry $100 $100 $0
Iowa Dry $100 $100 $0
Michigan Dry $95 $95 $0
Minnesota Dry $95 $95 $0
North Dakota Dry $105 $105 $0
New York Dry $125 $125 $0
South Dakota Dry $100 $100 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $103 $103 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $112 $112 $0
Iowa Dry $105 $106 -$1
Michigan Dry $110 $109 $1
Minnesota Dry $100 $100 $0
Missouri Dry $125 $125 $0
Ohio Dry $110 $110 $0
South Dakota Dry $100 $99 $1
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $108 $106 $2
Wet $45 $45 $0
Illinois Dry $110 $108 $2
Nebraska Dry $108 $106 $2
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $100 $100 $0
Indiana Dry $95 $95 $0
Iowa Dry $100 $100 $0
Michigan Dry $95 $95 $0
Minnesota Dry $95 $90 $5
Nebraska Dry $99 $99 $0
New York Dry $125 $125 $0
North Dakota Dry $100 $95 $5
Ohio Dry $98 $98 $0
South Dakota Dry $90 $90 $0
Wisconsin Dry $98 $98 $0
Valero Energy Corp., San Antonio, TX (402-932-5901)
Indiana Dry $97 $97 $0
Iowa Dry $98 $98 $0
Minnesota Dry $100 $100 $0
Nebraska Dry $100 $100 $0
Ohio Dry $108 $108 $0
South Dakota Dry $90 $90 $0
California $164 $168 -$4
Western Milling, Goshen, California (559-302-1074)
California Dry $180 $177 $3
*Prices listed per ton.
Weekly Average $102 $102 $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.

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

Follow her on Twitter @MaryCKenn

(ES/AG)

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Mary Kennedy

Mary Kennedy
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