DTN DDG Weekly Update

DDG Prices Unchanged on Average

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
Connect with Mary:
DTN's average weekly spot price for domestic distillers dried grains was steady on average at $134 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- Distillers dried grains (DDG) spot prices from the 40 locations DTN contacted were mixed, but on average remained steady versus one week ago at $134 per ton for the week-ended Sept. 6.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week-ended Sept. 6 was at 106.14%. The value of DDG relative to soybean meal was at 43.09%. The cost per unit of protein for DDG was $4.96, compared to the cost per unit of protein for soybean meal at $6.55.

Domestic demand was slowed by the long weekend and a slight improvement in pasture conditions across the country for the week ending Sept. 2. Tuesday's USDA Crop Progress report showed very poor conditions were 2 points better at 10%; poor was unchanged at 18%; fair was unchanged at 30%, good rose 2 points to 36% and excellent was unchanged at 6%. In addition, there is plenty of DDG supply available as ethanol plant production continues to move higher. This latest report from the Energy Information Agency showed plant production rose to 1.087 million barrels per day (bpd) during the week-ended Aug. 31, a four-week high and 2.5% higher than the same week in 2018.

In its weekly DDGS price update, the U.S. Grains Council noted, "DDGS prices were mostly down from last week, though adjustments were minor as the market moved sideways. DDGS at the Gulf fell $1/metric ton (mt) to $202/MT (September delivery). Prices for 40-ft. containers to Southeast Asia were down $2/mt on average; containers to Japan fell $6/mt. U.S. rail rates were down $2/mt from last week. Merchandisers reported sales to Vietnam and Indonesia in an otherwise quiet week."

The U.S. Census Bureau said Wednesday that U.S. exports of DDGS totaled 1,107,891 mt in July, up 11% from a year ago. Turkey was the top destination in July, accounting for 17% of U.S. exports, while Mexico was a close second. The first seven months of U.S. DDGS exports were up 4% in 2018 from a year ago.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 9/6/2018 8/30/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $155 $160 -$5
Modified $78 $80 -$2
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Dry $150 $150 $0
Wet $83 $83 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $145 $150 -$5
Indiana Dry $140 $140 $0
Iowa Dry $135 $130 $5
Michigan Dry $140 $130 $10
Minnesota Dry $125 $125 $0
North Dakota Dry $125 $120 $5
New York Dry $160 $130 $30
South Dakota Dry $125 $120 $5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $145 $145 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $134 $140 -$6
Iowa Dry $135 $132 $3
Michigan Dry $138 $138 $0
Minnesota Dry $130 $130 $0
Missouri Dry $151 $149 $2
Ohio Dry $142 $142 $0
South Dakota Dry $135 $130 $5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $135 $135 $0
Wet $45 $45 $0
Illinois Dry $150 $150 $0
Nebraska Dry $135 $135 $0
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $130 $135 -$5
Indiana Dry $127 $130 -$3
Iowa Dry $125 $125 $0
Michigan Dry $130 $135 -$5
Minnesota Dry $120 $120 $0
Nebraska Dry $135 $135 $0
New York Dry $140 $145 -$5
North Dakota Dry $130 $135 -$5
Ohio Dry $130 $135 -$5
South Dakota Dry $120 $125 -$5
Wisconsin Dry $130 $135 -$5
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $130 $130 $0
Iowa Dry $120 $120 $0
Minnesota Dry $125 $125 $0
Nebraska Dry $140 $140 $0
Ohio Dry $140 $140 $0
South Dakota Dry $125 $125 $0
California $190 $190 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $205 $204 $1
*Prices listed per ton.
Weekly Average $134 $134 $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.

**

VALUE OF DDG VS. CORN & SOYBEAN MEAL
Settlement Price: Quote Date Bushel Short Ton
Corn 9/6/2018 $3.5350 $126.25
Soybean Meal 9/6/2018 $311.00
DDG Weekly Average Spot Price $134.00
DDG Value Relative to: 9/6 8/30
Corn 106.14% 110.02%
Soybean Meal 43.09% 44.45%
Cost Per Unit of Protein:
DDG $4.96 $4.96
Soybean Meal $6.55 $6.35
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/AG)

Mary Kennedy

Mary Kennedy
Connect with Mary: