Market Matters Blog

DDG Prices Higher as Buyers Seek Fresh Supplies

By Mary Kennedy , DTN Basis Analyst
DTN's average weekly spot price for DDG was higher at $104 per ton. (DTN file photo by Elaine Shein)

The DTN average dried distillers grains, or DDG, spot price was up $2 from one week ago, at $104, for the week ended July 6. Of the 39 locations from which DTN collects spot prices, 12 bids were $2 to $10 higher and the balance of the prices were unchanged.

The value of DDG relative to corn for the week ended July 6 based on the 39 bids, was at 76.58% and the value of DDG relative to soybean meal was at 32.50%. The cost per unit of protein for DDG was at $4.16 compared to the cost per unit of protein for soybean meal which was at $6.74.

Prices have firmed this week after the long holiday weekend ended as end-users were anxious to buy fresh spot supplies. Many buyers are watching the soybean markets as the cash prices firmed the past five days, boosting soymeal prices with it. Also, buyers are watching the corn market which has moved higher the past week, but hasn't jumped as much as the soybean market.

The DDG market may not see much in the way of deferred pricing for now. Buyers will keep an eye on the weather and how it will affect the new-crop corn as it heads into its critical pollination stage.

CIF NOLA (New Orleans, Louisiana) dried distillers grains with solubles, or DDGS, prices for the week ended July 6 were $138 to $142 for July, and July/August/September prices were at $137 to $142. The U.S. Census Bureau reported Thursday that distillers grains exports for May totaled 742,043 metric tons, down 28% from one year ago. Mexico was the top export destination in May accounting for 18% of the total, with Turkey accounting for 14%. China was sixth, accounting for 5% of the total. In the first five months of 2017, exports of U.S. distillers grains were up 8% from one year ago.

Vietnam was absent again and there still is no word on when the country may solve the new phytosanitary/fumigation requirements issue with USDA's Animal and Plant Health Inspection Service, or APHIS. Vietnam was the third-largest buyer of U.S. DDGS in 2016, accounting for 1.2 million metric tons. That distinction ended in mid-December when Vietnam halted imports.

COMPANY STATE 7/03/017 6/29/017
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 $108 $105 $3
Indiana Dry $105 $100 $5
Iowa Dry $105 $100 $5
Michigan Dry $98 $95 $3
Minnesota Dry $100 $95 $5
North Dakota Dry $115 $105 $10
New York Dry $125 $125 $0
South Dakota Dry $105 $100 $5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $105 $103 $2
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $115 $112 $3
Iowa Dry $105 $105 $0
Michigan Dry $110 $110 $0
Minnesota Dry $102 $100 $2
Missouri Dry $125 $125 $0
Ohio Dry $115 $110 $5
South Dakota Dry $100 $100 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $108 $108 $0
Wet $45 $45 $0
Illinois Dry $112 $110 $2
Nebraska Dry $108 $108 $0
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 $100 $0
Michigan Dry $95 $95 $0
Minnesota Dry $95 $95 $0
Nebraska Dry $99 $99 $0
New York Dry $125 $125 $0
North Dakota Dry $100 $100 $0
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 $97 $0
Iowa Dry $98 $98 $0
Minnesota Dry $100 $100 $0
Nebraska Dry $100 $100 $0
Ohio Dry $108 $108 $0
South Dakota Dry $90 $90 $0
California $168 $164 $4
Western Milling, Goshen, California (559-302-1074)
California Dry $180 $180 $0
*Prices listed per ton.
Weekly Average $104 $102 $2
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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