Market Matters Blog

DDG Prices Lower

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for DDG was $5 weaker at $93 per ton. (DTN file photo by Elaine Shein)

The DTN average DDG spot price moved $5 lower from one week ago to $93 for the week ended Jan. 12. Price declines ranged from $2 to $20 per ton. Of the 39 locations from which DTN collects spot prices, 25 bids were lower, 5 bids were higher and the balance of the prices were unchanged.

On Jan. 10, China released a final ruling on U.S. distillers grains duties and tariffs following a year-long trade probe. Anti-dumping duties were set at a range from 42.2% to 53.7%, while anti-subsidy tariffs will be between 11.2% and 12%. The duties and tariffs apply to both distillers dried grains with and without solubles and will be in effect for five years starting Jan. 12, 2017. The preliminary penalties assessed in late September 2016 were an anti-dumping deposit of 33.8% and an anti-subsidy tariff of 10% to 10.7%. Merchandisers told DTN the market had expected the news, but some thought the final ruling was a bit harsh. A few noted prices have been helped a bit by good truck demand in the Midwest. However, Eastern Corn Belt locations with quality problems are trading $10-15 per below standard quality product. Remember, there is a vomitoxin issue in parts of the ECB and if tainted corn is put through the plant, it can affect the DDG allowable ranges for various animal feeds.

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CIF NOLA (New Orleans, Louisiana) DDGS prices for the week ended Jan. 12 were 6 cents lower for January at $118. February/March prices were 2 to 4 cents lower at $112 to $128. Informa Economics reported that export data through November 2016 was down 9 percentage points compared to a year ago. "Exports to China were off by roughly two-thirds compared to the previous year, so some of the impact of tariffs has already influenced the market. The weakness in DDGS prices at container yards and the Gulf suggest that this is an opportunity to entice new export demand."

The value of DDG relative to corn for the week ended Jan. 12 was lower at 72.68% and the value of DDG relative to soybean meal was lower at 28.68%. The cost per unit of protein for DDG was lower at $3.72 compared to the cost per unit of protein for soybean meal which was higher at $6.83. The relative price of DDG to corn and meal futures is running below average and remains a good value for end users.

CURRENT CURRENT
COMPANY STATE 1/12/2017 1/5/2017 CHANGE
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $120 $115 $5
Modified $60 $58 $2
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $100 $100 $0
Indiana Dry $90 $95 -$5
Iowa Dry $90 $98 -$8
Michigan Dry $75 $85 -$10
Minnesota Dry $85 $90 -$5
North Dakota Dry $95 $95 $0
New York Dry $105 $110 -$5
South Dakota Dry $90 $95 -$5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $110 $110 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $95 $90 $5
Iowa Dry $95 $100 -$5
Michigan Dry $95 $90 $5
Minnesota Dry $95 $100 -$5
Missouri Dry $100 $105 -$5
Ohio Dry $90 $90 $0
South Dakota Dry $98 $98 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $105 $105 $0
Wet $40 $40 $0
Illinois Dry $95 $105 -$10
Nebraska Dry $105 $105 $0
Wet $40 $40 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $85 $95 -$10
Indiana Dry $80 $100 -$20
Iowa Dry $90 $100 -$10
Michigan Dry $80 $100 -$20
Minnesota Dry $85 $90 -$5
Nebraska Dry $100 $105 -$5
New York Dry $105 $125 -$20
North Dakota Dry $105 $105 $0
Ohio Dry $80 $100 -$20
South Dakota Dry $85 $90 -$5
Wisconsin Dry $90 $100 -$10
Valero Energy Corp., San Antonio, TX (402-932-5901)
Indiana Dry $85 $90 -$5
Iowa Dry $100 $95 $5
Minnesota Dry $92 $92 $0
Nebraska Dry $100 $105 -$5
Ohio Dry $95 $110 -$15
South Dakota Dry $90 $90 $0
California $156 $158 -$2
Western Milling, Goshen, California (559-302-1074)
California Dry $170 $175 -$5
*Prices listed per ton.
Weekly Average $93 $98 -$5
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.

Mary Kennedy can be reached at mary.kennedy@dtn.com

(AG/ES)

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