OMAHA (DTN) -- The average distillers dried grain (DDG) spot price from the 39 locations where DTN collected bids was $148 for the week ended Feb. 15, $1 stronger on average than a week ago.
Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Feb. 15 was at 112.68%, and the value of DDG relative to soybean meal was at 39.60%. The cost per unit of protein for DDG was $5.48, compared to the cost per unit of protein for soybean meal at $7.87. The surge in soymeal prices the past week has kept DDG as a good value in rations.
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Domestic prices were mixed, but a few states where supplies are tight saw an increase in values. The Energy Information Administration (EIA) report Wednesday showed that ethanol production for the week ending Feb. 9 was the lowest production number since the start of the year, adding to the tight supply of DDG for some plants. Merchandisers noted that prices at the Texas border remain strong, indicating continued demand form Mexico.
The U.S. Grains Council (USGC) said in its weekly price update that barge CIF NOLA prices are $8/metric ton (MT) higher this week while FOB Gulf DDGs values are up $9/MT. "Merchandisers are reporting Asian buyers are showing only light interest at current prices, waiting for prices to moderate somewhat. However, prices for 40-foot containers to Southeast Asia increased $6/MT this week with prices to Shanghai leading the way (up $9/MT). On average, DDGS destined for Southeast Asia increased $4/MT this week."
Mary Kennedy can be reached at email@example.com
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|Valero Energy Corp, San Antonio Texas||(210-345-3362)||(210-345-3362)|
|Western Milling, Goshen, California (559-302-1074)|
|*Prices listed per ton.|
|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|
|DDG Weekly Average Spot Price||$148.00|
|DDG Value Relative to:||2/15||2/8|
|Cost Per Unit of Protein:|
|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.|
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