Market Matters Blog

DDG Prices Firm on Steady Demand

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for DDG was up $1 per ton, at $102 per ton. (DTN file photo by Elaine Shein)

The DTN average dried distillers grains, or DDG, spot price was up $1 per ton from two weeks ago, at $102, for the week ended June 22. Of the 39 locations from which DTN collects spot prices, 15 bids were $1 to $13 higher, seven bids were $2 to $8 lower and the balance of the prices were unchanged. The value of DDG relative to corn, based on those bids for the week ended June 22, was at 78.73%, and the value of DDG relative to soybean meal was at 34.72%. The cost per unit of protein for DDG was at $4.08, compared to the cost per unit of protein for soybean meal at $6.19.

One merchandiser said that with ethanol margins weakening, some plants are shutting down or reducing run rates. Buyers are looking for product outside their areas because their local plants have no offers. Another merchandiser said there seems to be a rush to secure feed ahead of the upcoming Fourth of July holiday, pushing DDG prices higher this week. Given the weakness in corn and soymeal prices the past few days, it is likely DDG prices during the next few weeks may move lower once the holiday passes or until ethanol margins improve.

Informa Economics reported most of the trading done this past week for the nearby was as a result of uncertainty in the marketplace prior to the end-of-the-month planting and stocks report, "causing buyers to be reluctant to buy forward in this market environment. If the corn production and yields are as expected, the price of DDGs may lose the current support."

CIF NOLA (New Orleans, Louisiana) dried distillers grains with solubles, or DDGS, prices for the week ended June 22 were $132 to $136 for June, and July prices were at $127 to $133. Exports have been steady the past few weeks, supporting prices.

CURRENT PREVIOUS CHANGE
COMPANY STATE 6/22/017 6/8/2017
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 $105 $0
Indiana Dry $100 $100 $0
Iowa Dry $100 $103 -$3
Michigan Dry $95 $103 -$8
Minnesota Dry $95 $95 $0
North Dakota Dry $105 $105 $0
New York Dry $125 $130 -$5
South Dakota Dry $100 $100 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $103 $100 $3
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $112 $110 $2
Iowa Dry $106 $100 $6
Michigan Dry $109 $108 $1
Minnesota Dry $100 $96 $4
Missouri Dry $125 $112 $13
Ohio Dry $110 $110 $0
South Dakota Dry $99 $96 $3
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $106 $110 -$4
Wet $45 $45 $0
Illinois Dry $108 $114 -$6
Nebraska Dry $106 $110 -$4
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $100 $100 $0
Indiana Dry $95 $95 $0
Iowa Dry $100 $98 $2
Michigan Dry $95 $98 -$3
Minnesota Dry $90 $85 $5
Nebraska Dry $99 $99 $0
New York Dry $125 $125 $0
North Dakota Dry $95 $97 -$2
Ohio Dry $98 $98 $0
South Dakota Dry $90 $90 $0
Wisconsin Dry $98 $98 $0
Valero Energy Corp., San Antonio, TX (402-932-5901)
Indiana Dry $97 $95 $2
Iowa Dry $98 $95 $3
Minnesota Dry $100 $95 $5
Nebraska Dry $100 $97 $3
Ohio Dry $108 $100 $8
South Dakota Dry $90 $85 $5
California $168 $165 $3
Western Milling, Goshen, California (559-302-1074)
California Dry $177 $177 $0
*Prices listed per ton.
Weekly Average $102 $101 $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.

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

Follow her on Twitter @MaryCKenn

(BAS\TN)

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