DDG Weekly Update

DDG Prices Slightly Higher

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for domestic distillers dried grains was up $1 at $167 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The average distillers dried grains (DDG) spot price from the 39 locations DTN contacted was $167 per ton for the week ended April 19, up $1 per ton versus a week ago. A few merchandisers did say the market does feel like it wants to move lower heading in to May. That will all depend on supply availability and feeder demand as we head to warmer temperatures.

The Energy Information Administration (EIA) reported that ethanol plant production continued lower, dropping 25,000 barrels per day (bpd) to 1.009 million bpd during the week ended April 13. DDG bids were higher in the plants where supplies have been tightened by either spring maintenance or slower production.

Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended April 19 was at 122.40%, and the value of DDG relative to soybean meal was at 44.73%. The cost per unit of protein for DDG was $6.19, compared to the cost per unit of protein for soybean meal at $7.86. Even with soymeal prices weaker this week, DDG still remains the best value per unit of protein.

The U.S. Grains Council (USGC) noted in its weekly market price update that, "Barge CIF NOLA prices fell this week while FOB NOLA prices decreased as well. Logistics issues across the Midwest sent rail-delivered PNW prices $3/metric tons (MT) higher and FOB Lethbridge, Alberta values $12/MT higher. Prices for product CIF Southeast Asia were steady/higher, rising $2/MT on average. Prices for shipments to Taiwan led the way with $4/MT gains, while product for the Philippines and Malaysia rose $3/MT."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 4/19/2018 4/12/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $175 $170 $5
Modified $90 $85 $5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $175 $175 $0
Indiana Dry $170 $170 $0
Iowa Dry $170 $170 $0
Michigan Dry $180 $175 $5
Minnesota Dry $165 $165 $0
North Dakota Dry $170 $170 $0
New York Dry $175 $175 $0
South Dakota Dry $165 $165 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $163 $160 $3
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $170 $170 $0
Iowa Dry $160 $155 $5
Michigan Dry $170 $170 $0
Minnesota Dry $165 $160 $5
Missouri Dry $180 $180 $0
Ohio Dry $170 $170 $0
South Dakota Dry $155 $155 $0
` `
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $168 $163 $5
Wet $55 $55 $0
Illinois Dry $175 $172 $3
Nebraska Dry $168 $163 $5
Wet $55 $55 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $175 $175 $0
Indiana Dry $175 $175 $0
Iowa Dry $160 $160 $0
Michigan Dry $170 $170 $0
Minnesota Dry $155 $155 $0
Nebraska Dry $165 $165 $0
New York Dry $180 $180 $0
North Dakota Dry $170 $170 $0
Ohio Dry $170 $170 $0
South Dakota Dry $155 $155 $0
Wisconsin Dry $160 $160 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $170 $170 $0
Iowa Dry $155 $155 $0
Minnesota Dry $160 $160 $0
Nebraska Dry $170 $170 $0
Ohio Dry $170 $170 $0
South Dakota Dry $165 $165 $0
California $235 $235 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $238 $236 $2
*Prices listed per ton.
Weekly Average $167 $166 $1
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 4/19/2018 $3.8200 $136.43
Soybean Meal 4/19/2018 $373.30
DDG Weekly Average Spot Price $167.00
DDG Value Relative to: 4/19 4/12
122.40% 119.56%
Soybean Meal 44.73% 43.29%
Cost Per Unit of Protein:
DDG $6.19 $6.15
Soybean Meal $7.86 $8.07
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

(BAS/CZ)

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Mary Kennedy

Mary Kennedy
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