DDG Weekly Update

Domestic DDG Prices Steady

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
Connect with Mary:
DTN's weekly spot price for domestic distillers dried grains was unchanged 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 steady at $141 per ton for the week ended Feb. 14 versus the prior week.

Spot truck values collected by DTN are steady with merchandisers telling DTN the market was quiet the past week. Energy Information Administration data released Wednesday showed plant production rising for the first time in four weeks, as plants are able to manage the winter weather better after the polar vortex presented a challenge for some of their plant equipment, noted a few merchandisers.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Feb. 14 was at 105.35%. The value of DDG relative to soybean meal was at 46.15%. The cost per unit of protein for DDG was $5.22, compared to the cost per unit of protein for soybean meal at $6.43.

In their weekly DDGS update, the U.S. Grains Council noted that DDGS indications were mostly unchanged this week on the heels of the Lunar New Year celebrations. Forty-foot containers to Southeast Asia (March delivery) were unchanged. Prices at the U.S. Gulf ticked up as barge logistics continue to complicate nearby delivery, and U.S. rail rates were up $1 per metric ton on average. "With Asian buyers returning to the market following the holiday lull, merchandisers report an uptick in business from especially Southeast Asia, including Vietnam. Additional interest from Egypt and the Mediterranean is being reported as well."

Logistics on most of the U.S. river system remain a challenge for barges heading to the Gulf. "Baton Rouge and New Orleans Harbors have had weather related stoppages and slowdowns including high water, rains, and fog since [the] end [of] December. This has been [an] unprecedented period of time without relief," said Tom Russell, Russell Marine Group. "In the Harbor, safety protocols due [to] high water are in place. Added to that, above average rains in the Ohio River Valley, high water on Lower Mississippi and the Nola/Baton Rouge Harbors will be an issue for [an] extended period of time and last months."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 2/14/2019 2/7/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $150 $150 $0
Modified $80 $80 $0
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 $136 $138 -$2
Iowa Dry $134 $136 -$2
Michigan Dry $130 $130 $0
Minnesota Dry $134 $137 -$3
Missouri Dry $149 $154 -$5
Ohio Dry $145 $142 $3
South Dakota Dry $145 $143 $2
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $140 $145 -$5
Wet $60 $60 $0
Illinois Dry $145 $150 -$5
Nebraska Dry $140 $145 -$5
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 $130 $0
Michigan Dry $135 $135 $0
Minnesota Dry $130 $130 $0
Nebraska Dry $130 $130 $0
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 $140 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $150 $150 $0
Iowa Dry $135 $135 $0
Minnesota Dry $135 $135 $0
Nebraska Dry $135 $135 $0
Ohio Dry $160 $160 $0
South Dakota Dry $140 $140 $0
California $197 $197 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $210 $210 $0
*Prices listed per ton.
Weekly Average $141 $141 $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 2/14/2019 $3.7475 $133.84
Soybean Meal 2/14/2019 $305.50
DDG Weekly Average Spot Price $141.00
DDG Value Relative to: 2/14 2/7
Corn 105.35% 106.35%
Soybean Meal 46.15% 46.81%
Cost Per Unit of Protein:
DDG $5.22 $5.30
Soybean Meal $6.43 $6.43
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

(CZ)

Mary Kennedy

Mary Kennedy
Connect with Mary: