DTN DDG Weekly Update

DDG Prices Move 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 $13 higher on average at $134 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The distillers dried grains (DDG) spot prices from the 40 locations DTN contacted pushed higher in the past two weeks at $134 per ton for the week ended August. That's up $13 per ton versus the last update on July 19. Values have significantly improved with the strength in corn prices and a pickup in export interest for U.S. DDGS.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Aug. 2 was at 102.30%, and the value of DDG relative to soybean meal was at 40.26%. The cost per unit of protein for DDG was $4.96, compared to the cost per unit of protein for soybean meal at $7.01. The DDG ratio to cash corn value remains pretty much in line with its two-year average and DDG remains the better value over soymeal.

In its weekly DDGS price update, the U.S. Grains Council (USGC) noted, "DDGS prices were up across the board this week, jumping to $224 per metric ton (mt) for FOB U.S. Gulf August shipment. Containers to Southeast Asia saw double-digit increases, with merchandisers reporting brisk market activity and sales to Vietnam and Thailand. According to USDA FAS, Vietnam's animal feed demand in 2018-19 will be up 3% to 30.9 million metric tons (mmt) due to expanding pork and aquaculture production. DDGS consumption will make the biggest jump in consumption, rising 45% to 1 mmt. Reportedly, ocean container capacity is filling up rapidly in response to the market's activity."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 8/2/2018 7/19/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $155 $135 $20
Modified $75 $67 $8
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Dry $155 $140 $15
Wet $80 $65 $15
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $156 $147 $9
Indiana Dry $148 $138 $10
Iowa Dry $135 $120 $15
Michigan Dry $144 $130 $14
Minnesota Dry $120 $110 $10
North Dakota Dry $120 $110 $10
New York Dry $142 $130 $12
South Dakota Dry $120 $110 $10
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $135 $118 $17
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $145 $135 $10
Iowa Dry $125 $110 $15
Michigan Dry $140 $135 $5
Minnesota Dry $125 $105 $20
Missouri Dry $150 $140 $10
Ohio Dry $145 $135 $10
South Dakota Dry $115 $100 $15
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $121 $118 $3
Wet $35 $35 $0
Illinois Dry $158 $150 $8
Nebraska Dry $121 $118 $3
Wet $35 $35 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $145 $135 $10
Indiana Dry $140 $130 $10
Iowa Dry $125 $115 $10
Michigan Dry $140 $130 $10
Minnesota Dry $125 $110 $15
Nebraska Dry $125 $105 $20
New York Dry $150 $135 $15
North Dakota Dry $120 $110 $10
Ohio Dry $145 $130 $15
South Dakota Dry $120 $110 $10
Wisconsin Dry $140 $130 $10
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $140 $133 $7
Iowa Dry $117 $95 $22
Minnesota Dry $115 $100 $15
Nebraska Dry $120 $90 $30
Ohio Dry $145 $140 $5
South Dakota Dry $115 $105 $10
California $205 $184 $21
Western Milling, Goshen, California (559-302-1074)
California Dry $213 $199 $14
*Prices listed per ton.
Weekly Average $134 $121 $13
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 8/2/2018 $3.6675 $130.98
Soybean Meal 8/2/2018 $332.80
DDG Weekly Average Spot Price $134.00
DDG Value Relative to: 8/2 7/19
Corn 102.30% 101.51%
Soybean Meal 40.26% 36.59%
Cost Per Unit of Protein:
DDG $4.96 $4.48
Soybean Meal $7.01 $6.92
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

(AG)

Mary Kennedy

Mary Kennedy
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