DDG Weekly Update

Domestic DDG Prices Slightly Lower on Average

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's weekly spot price for domestic distillers dried grains was $1 lower on average at $144 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 $1 lower at $144 per ton for the week ended Jan. 31 versus the prior week.

Spot truck values collected by DTN are steady to lower again this week, even as ethanol plant runtimes have slowed and extreme cold is covering much of the Midwest. While this should mean more demand for DDG and better prices, buyers continue to turn away from the market thinking prices will go lower still.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 31 was at 107.09%. The value of DDG relative to soybean meal was at 46.45%. The cost per unit of protein for DDG was $5.33, compared to the cost per unit of protein for soybean meal at $6.53.

Informa Economics recently noted that DDG and ethanol traders are closely watching some possible key developments on the China trade policy front. "Chatter suggests it is possible for the U.S. to regain DDGS export access to China and to create new markets for ethanol. In talks this week, U.S. officials are expected to urge China to drop its anti-dumping and countervailing duties on DDGS."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT Previous CHANGE
COMPANY STATE 1/31/2019 1/24/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $160 $165 -$5
Modified $85 $85 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $150 $155 -$5
Wet $80 $80 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $145 $145 $0
Indiana Dry $140 $140 $0
Iowa Dry $130 $130 $0
Michigan Dry $145 $145 $0
Minnesota Dry $135 $140 -$5
North Dakota Dry $140 $140 $0
New York Dry $155 $155 $0
South Dakota Dry $140 $140 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $145 $155 -$10
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $140 $140 $0
Iowa Dry $143 $143 $0
Michigan Dry $130 $130 $0
Minnesota Dry $140 $140 $0
Missouri Dry $158 $158 $0
Ohio Dry $142 $142 $0
South Dakota Dry $147 $147 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $145 $145 $0
Wet $60 $60 $0
Illinois Dry $150 $150 $0
Nebraska Dry $145 $145 $0
Wet $60 $60 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $137 $140 -$3
Indiana Dry $135 $135 $0
Iowa Dry $132 $135 -$3
Michigan Dry $135 $135 $0
Minnesota Dry $135 $135 $0
Nebraska Dry $135 $140 -$5
New York Dry $152 $155 -$3
North Dakota Dry $165 $170 -$5
Ohio Dry $145 $145 $0
South Dakota Dry $140 $140 $0
Wisconsin Dry $135 $135 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $155 $155 $0
Iowa Dry $145 $145 $0
Minnesota Dry $150 $150 $0
Nebraska Dry $150 $150 $0
Ohio Dry $160 $160 $0
South Dakota Dry $155 $155 $0
California $200 $200 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $210 $215 -$5
*Prices listed per ton.
Weekly Average $144 $145 -$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 1/31/2019 $3.7650 $134.46
Soybean Meal 1/31/2019 $310.00
DDG Weekly Average Spot Price $144.00
DDG Value Relative to: 1/31 1/24
Corn 107.09% 107.69%
Soybean Meal 46.45% 46.43%
Cost Per Unit of Protein:
DDG $5.33 $5.37
Soybean Meal $6.53 $6.57
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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