Market Matters Blog

DDG Prices Driven Higher by Rise in Corn Futures

By Mary Kennedy , DTN Basis Analyst
DTN's average weekly spot price for DDG was up $3 per ton, at $101 per ton. (DTN file photo by Elaine Shein)

The DTN average dried distillers grains, or DDG, spot price was up $3 per ton from one week ago, at $101, for the week ended June 8. Of the 39 locations from which DTN collects spot prices, 22 bids were $2 to $11 higher, and the balance of the prices were unchanged.

One of the main reasons for the rise in the DDG cash price can be attributed to the 16-cent per-bushel rally in the corn futures from one week ago. Merchandisers said DDG prices began to firm up this week along with the higher corn futures and also because of higher meal prices, as a result of prospects of hot temperatures during the next few days. If weather concerns continue and the potential to reduce yields becomes a factor strengthening corn prices, DDG prices will likely continue to move higher in response.

The current relative distillers dried grains to corn futures is 70%, noted Informa Economics. "This is considerably below the three-year June average of 117% and the five-year June average of 111% because of the reduction in exports, mainly China. Historically the relative price of distillers dried grains to corn decreases from May to June by about 5%."

CIF NOLA (New Orleans, Louisiana) dried distillers grains with solubles, or DDGS, prices for the week ended June 8 were $132 for June, and July prices were at $132 to $128. A merchandiser said CIF NOLA bids and container market bids all increased by about $5/ton Thursday. The U.S. Census Bureau reported June 2 that U.S. exports of DDGS totaled 869,041 metric tons in April, down 2% from a year ago. Mexico was the top export destination in April and Turkey was a close second, with the two countries accounting for 38% of the total. China was fifth on the list, taking just 6% of the total. In the first four months of 2017, exports of U.S. DDGS were up 19% from one year ago.

CURRENT PREVIOUS CHANGE
COMPANY STATE 6/8/2017 6/1/2017
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $120 $120 $0
Modified $60 $60 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $105 $95 $10
Indiana Dry $100 $95 $5
Iowa Dry $103 $95 $8
Michigan Dry $103 $92 $11
Minnesota Dry $95 $90 $5
North Dakota Dry $105 $95 $10
New York Dry $130 $120 $10
South Dakota Dry $100 $95 $5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $100 $96 $4
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $110 $110 $0
Iowa Dry $100 $100 $0
Michigan Dry $108 $108 $0
Minnesota Dry $96 $96 $0
Missouri Dry $112 $112 $0
Ohio Dry $110 $110 $0
South Dakota Dry $96 $96 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $110 $103 $7
Wet $45 $45 $0
Illinois Dry $114 $106 $8
Nebraska Dry $110 $103 $7
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $100 $100 $0
Indiana Dry $95 $90 $5
Iowa Dry $98 $95 $3
Michigan Dry $98 $95 $3
Minnesota Dry $85 $85 $0
Nebraska Dry $99 $99 $0
New York Dry $125 $120 $5
North Dakota Dry $97 $95 $2
Ohio Dry $98 $94 $4
South Dakota Dry $90 $85 $5
Wisconsin Dry $98 $95 $3
Valero Energy Corp., San Antonio, TX (402-932-5901)
Indiana Dry $95 $95 $0
Iowa Dry $95 $90 $5
Minnesota Dry $95 $90 $5
Nebraska Dry $97 $95 $2
Ohio Dry $100 $100 $0
South Dakota Dry $85 $80 $5
California $165 $158 $7
Western Milling, Goshen, California (559-302-1074)
California Dry $177 $170 $7
*Prices listed per ton.
Weekly Average $101 $97 $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.

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

Follow her on Twitter @MaryCKenn

(TN)

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