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 $3 lower on average at $141 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was $3 lower at $141 per ton for the week ended Feb. 7 versus the prior week.

Spot truck values collected by DTN are steady to lower again this week, even as ethanol plant production dropped by the most in three weeks. Production was down 45,000 barrels per day (bpd) to 967,000 million bpd with output down 8.5% from a year ago, according to weekly energy data. Buyers are still not ready to increase inclusion rates in rations, but as DDG prices continue to get cheaper, they should return to buying.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Feb. 7 was at 106.35%. The value of DDG relative to soybean meal was at 46.81%. The cost per unit of protein for DDG was $5.30, compared to the cost per unit of protein for soybean meal at $6.43.

CIF NOLA distillers dried grains with solubles (DDGS) prices are firm, as river conditions remain messy. Ice on the Illinois River is causing slowdowns as it moves down river and high water in the Lower Mississippi River, coupled with heavy fog in the Gulf, has slowed barge traffic heading south and slowed and/or stalled vessel loadings in the Gulf. ACBL noted that at the Gulf, the canals will experience wind delays beginning Friday and lasting until Saturday afternoon. "There will be a brief 24-48 hour window of improved conditions, but then fog is expected to roll back in early next week. Expect significant delays in pickup and transit time."

The U.S. Census Bureau said Wednesday that U.S. exports of DDGS totaled 1,016,544 mt in November, a little less than October, but up 16% from a year ago. U.S DDGS continue to find broad interest with Mexico, Vietnam, Indonesia, Thailand and South Korea listed as the top five destinations, accounting for 58% of exports in November. The first eleven months of 2018 showed exports of U.S. DDGS up 9% from a year ago.

However, as of Jan.1, 2019, Thailand stopped buying U.S. DDGS because of a new fumigation requirement imposed after beetles were discovered in a shipment in late 2018. Regulations require all DDGS shipments entering the country to be fumigated with methyl bromide, but U.S. shippers prefer to use phosphine. This is the same issue that caused Vietnam imports of DDGS to be stalled for almost one year between fall 2016 and fall 2017, finally ending after Vietnam eased fumigation requirements. Merchandisers told DTN that the Thai Ministry of Agriculture has been quiet on this issue to date.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 2/7/2019 1/31/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $150 $160 -$10
Modified $80 $85 -$5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $150 $150 $0
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 $135 $0
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 $145 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $138 $140 -$2
Iowa Dry $136 $143 -$7
Michigan Dry $130 $130 $0
Minnesota Dry $137 $140 -$3
Missouri Dry $154 $158 -$4
Ohio Dry $142 $142 $0
South Dakota Dry $143 $147 -$4
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 $137 $0
Indiana Dry $135 $135 $0
Iowa Dry $130 $132 -$2
Michigan Dry $135 $135 $0
Minnesota Dry $130 $135 -$5
Nebraska Dry $130 $135 -$5
New York Dry $152 $152 $0
North Dakota Dry $165 $165 $0
Ohio Dry $145 $145 $0
South Dakota Dry $140 $140 $0
Wisconsin Dry $140 $135 $5
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $150 $155 -$5
Iowa Dry $135 $145 -$10
Minnesota Dry $135 $150 -$15
Nebraska Dry $135 $150 -$15
Ohio Dry $160 $160 $0
South Dakota Dry $140 $155 -$15
California $197 $200 -$3
Western Milling, Goshen, California (559-302-1074)
California Dry $210 $210 $0
*Prices listed per ton.
Weekly Average $141 $144 -$3
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 2/7/2019 $3.7650 $134.46
Soybean Meal 2/7/2019 $305.50
DDG Weekly Average Spot Price $141.00
DDG Value Relative to: 2/7 1/31
Corn 106.35% 107.09%
Soybean Meal 46.81% 46.45%
Cost Per Unit of Protein:
DDG $5.30 $5.33
Soybean Meal $6.43 $6.53
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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