DDG Weekly Update
DDG Prices Rise on Export Demand
OMAHA (DTN) -- CIF NOLA (New Orleans, Louisiana) DDGS prices were stronger from one week ago, with September at $144 to $148, and October through December at $144 to $150. The market is firming since the announcement last Friday that Vietnam will accept imports of U.S. DDGS once again.
The Plant Protection Department of Vietnam (PPD) noted in their announcement of resumption of U.S. DDGS imports, that phosphine will be acceptable for treatment of DDGS, corn and wheat from the U.S prior to exporting the product to Vietnam. In a letter sent to APHIS and industry leaders, PPD Director General Hoang Trung said the phytosanitary certificate needed to include date, location of the fumigation, fumigant, duration and temperature of treatment.
"However, if any interception of living quarantine pest of Vietnam, PPD will apply the phytosanitary measures according to our regulation," concluded Trung. Here is a link to the requirements for U.S. DDGS, corn and wheat for export to Vietnam: http://www.dtn.com/…
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A merchandiser told me most of the demand for DDGS is for containers vs. bulk shipments and the Vietnam news came at just the right time. Plants had been building supplies because they were running at a faster pace due to good margins and with fresh demand coming from Vietnam it will help alleviate any plants burdened with product. Another merchandiser noted that there will be delays at the Port in Savannah, Georgia, where some DDGS containers are shipped from, because it will be shut down this weekend due to Hurricane Irma.
The DTN average dried distillers grains (DDG) spot price from the 39 locations DTN collects bids from was $108 for the week ended Sept. 7, 2 cents higher on average from one week ago.
Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Sept. 7 was at 88.48%, and the value of DDG relative to soybean meal was at 35.71%. The cost per unit of protein for DDG was $4.00, compared to the cost per unit of protein for soybean meal at $6.37.
| CURRENT | PREVIOUS | CHANGE | |||
| COMPANY | STATE | 9/7/2017 | 8/31/017 | ||
| 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 | $115 | $115 | $0 | |
| Indiana | Dry | $113 | $110 | $3 | |
| Iowa | Dry | $110 | $105 | $5 | |
| Michigan | Dry | $103 | $100 | $3 | |
| Minnesota | Dry | $110 | $103 | $7 | |
| North Dakota | Dry | $110 | $110 | $0 | |
| New York | Dry | $120 | $120 | $0 | |
| South Dakota | Dry | $108 | $105 | $3 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $105 | $105 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $108 | $108 | $0 | |
| Iowa | Dry | $105 | $105 | $0 | |
| Michigan | Dry | $108 | $105 | $3 | |
| Minnesota | Dry | $105 | $105 | $0 | |
| Missouri | Dry | $115 | $112 | $3 | |
| Ohio | Dry | $108 | $108 | $0 | |
| South Dakota | Dry | $105 | $100 | $5 | |
| ` | ` | ||||
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $118 | $114 | $4 | |
| Wet | $50 | $45 | $5 | ||
| Illinois | Dry | $127 | $122 | $5 | |
| Nebraska | Dry | $118 | $114 | $4 | |
| Wet | $50 | $45 | $5 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $110 | $110 | $0 | |
| Indiana | Dry | $103 | $103 | $0 | |
| Iowa | Dry | $103 | $103 | $0 | |
| Michigan | Dry | $100 | $100 | $0 | |
| Minnesota | Dry | $100 | $100 | $0 | |
| Nebraska | Dry | $102 | $102 | $0 | |
| New York | Dry | $120 | $120 | $0 | |
| North Dakota | Dry | $100 | $100 | $0 | |
| Ohio | Dry | $105 | $105 | $0 | |
| South Dakota | Dry | $100 | $100 | $0 | |
| Wisconsin | Dry | $105 | $105 | $0 | |
| Valero Energy Corp., San Antonio, TX (402-932-5901) | |||||
| Indiana | Dry | $110 | $105 | $5 | |
| Iowa | Dry | $108 | $105 | $3 | |
| Minnesota | Dry | $105 | $105 | $0 | |
| Nebraska | Dry | $105 | $108 | -$3 | |
| Ohio | Dry | $110 | $110 | $0 | |
| South Dakota | Dry | $100 | $95 | $5 | |
| California | $170 | $172 | -$2 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $180 | $176 | $4 | |
| *Prices listed per ton. | |||||
| Weekly Average | $108 | $106 | $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. | |||||
| VALUE OF DDG VS. CORN & SOYBEAN MEAL | |||
| Settlement Price: | Quote Date | Bushel | Short Ton |
| Corn | 9/7/2017 | $3.4175 | $122.05 |
| Soybean Meal | 9/7/2017 | $302.40 | |
| DDG Weekly Average Spot Price | $108.00 | ||
| DDG Value Relative to: | 9/7 | 8/31 | |
| Corn | 88.48% | 86.72% | |
| Soybean Meal | 35.71% | 36.01% | |
| Cost Per Unit of Protein: | |||
| DDG | $4.00 | $3.93 | |
| Soybean Meal | $6.37 | $6.20 | |
| 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 27. | |||
Mary Kennedy can be reached at mary.kennedy@dtn.com
Follow her on Twitter @MaryCKenn
(CZ)
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