DDG Weekly Update

DDG Prices Continue Lower

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's weekly spot price for domestic distillers dried grains was $7 lower on average at $153 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains average spot price from the 40 locations DTN contacted was $7 lower at $153 per ton for the week ended Jan. 10 versus the prior week.

Spot truck values are lower once again as demand has slowed. Feeders have reformulated rations to include more soymeal after DDG prices rose in December, causing sellers to lower prices in order to move product. Even with another week of lower plant production reported by the Energy Information Administration, supplies are not an issue right now.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 10 was at 113.86%. The value of DDG relative to soybean meal was at 48.94%. The cost per unit of protein for DDG was $5.67, compared to the cost per unit of protein for soybean meal at $6.58.

Informa Economics reported that rumors suggest China may have purchased an export cargo of DDGS from the U.S. in late 2018. "The price behavior doesn't seem to be corroborating that rumor, with cheaper prices not reflecting much optimism on significant purchases from China," the group stated.

Due to the government shutdown, there has been no shipment data released by the government, so there is no way to confirm if that did or did not happen. It would be interesting though if they did buy, given that stiff penalties still remain on U.S. DDGS imports in to China, along with the higher prices we saw in late November in to December.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT Previous CHANGE
COMPANY STATE 1/10/2019 1/3/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $165 $180 -$15
Modified $85 $90 -$5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $160 $170 -$10
Wet $82 $90 -$8
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $145 $150 -$5
Indiana Dry $142 $150 -$8
Iowa Dry $145 $152 -$7
Michigan Dry $145 $145 $0
Minnesota Dry $150 $150 $0
North Dakota Dry $150 $155 -$5
New York Dry $155 $155 $0
South Dakota Dry $150 $160 -$10
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $170 $170 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $150 $162 -$12
Iowa Dry $155 $175 -$20
Michigan Dry $130 $140 -$10
Minnesota Dry $155 $165 -$10
Missouri Dry $173 $185 -$12
Ohio Dry $155 $160 -$5
South Dakota Dry $160 $165 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $145 $150 -$5
Wet $60 $60 $0
Illinois Dry $150 $160 -$10
Nebraska Dry $145 $150 -$5
Wet $60 $60 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $145 $155 -$10
Indiana Dry $145 $155 -$10
Iowa Dry $155 $165 -$10
Michigan Dry $145 $155 -$10
Minnesota Dry $145 $160 -$15
Nebraska Dry $160 $170 -$10
New York Dry $165 $175 -$10
North Dakota Dry $170 $170 $0
Ohio Dry $155 $155 $0
South Dakota Dry $160 $170 -$10
Wisconsin Dry $140 $145 -$5
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $150 $160 -$10
Iowa Dry $150 $150 $0
Minnesota Dry $165 $160 $5
Nebraska Dry $160 $160 $0
Ohio Dry $160 $160 $0
South Dakota Dry $155 $160 -$5
California $205 $225 -$20
Western Milling, Goshen, California (559-302-1074)
California Dry $216 $225 -$9
*Prices listed per ton.
Weekly Average $153 $160 -$7
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 1/10/2019 $3.7625 $134.38
Soybean Meal 1/10/2019 $312.60
DDG Weekly Average Spot Price $153.00
DDG Value Relative to: 1/10 1/3
Corn 113.86% 117.97%
Soybean Meal 48.94% 51.17%
Cost Per Unit of Protein:
DDG $5.67 $5.93
Soybean Meal $6.58 $6.58
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)

Mary Kennedy

Mary Kennedy
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