Market Matters Blog

DDG Prices Higher Amid Good Demand

By Mary Kennedy , DTN Basis Analyst
DTN's average weekly spot price for DDG was higher at $107 per ton. (DTN file photo by Elaine Shein)

The DTN average dried distillers grains spot price was up $3 from one week ago, at $107, for the week ended July 13. Of the 39 locations from which DTN collects spot prices, 21 bids were $2 to $17 higher; 2 bids were $3 lower; and the balance of the prices were unchanged.

The value of DDG relative to corn for the week ended July 13 based on the 39 bids, was at 82.99% and the value of DDG relative to soybean meal was at 33.77%. The cost per unit of protein for DDG was $4.28, compared to the cost per unit of protein for soybean meal at $6.67.

Prices were higher earlier in the week ahead of the USDA report, and while they came off those highs after the bearish outcome for corn in that report, they still remain firm with some supply tightness noted in the east. We will likely see price volatility for the rest of July as both corn and soybean meal production expectations will be subject to a weather market.

CIF NOLA (New Orleans, Louisiana) dried distillers grains with solubles, or DDGS, prices for the week ended July 16 were higher at $140 to $152.50 for July, and August/September prices were at $138 to $145. Bids for barges have been firming the market up according to merchandisers, as some of the shorts at the Gulf are needing to cover contracts. Barges bid for first half August are currently at a premium to last half.

On July 13, USGC reported exports of distillers dried grains with solubles (DDGS) to Southeast Asia have increased 16% so far this marketing year, according to data from USDA and analysis by the U.S. Grains Council (USGC). The Southeast Asian region, composed of Brunei, Cambodia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, currently represents the third-largest market for U.S. DDGS. Thus far in the marketing year (September 2016-May 2017), sales to the region totaled more than 1.7 million metric tons, accounting for 20% of overall U.S. DDGS exports.

"U.S. DDGS exports have increased to seven of the eight countries within the region this marketing year. Year-over-year, shipments of U.S. DDGS have increased by 55% to Thailand, to 630,000 tons, and 42% to Indonesia, to 348,000 tons. In addition, U.S. DDGS exports have more than doubled to both Malaysia and Myanmar compared to the same time the year prior. While sales are down to Vietnam due to outstanding market issues, the country's more than 490,000 tons in purchases still rank as the seventh-largest market for U.S. DDGS," said USGC.

CURRENT PREVIOUS CHANGE
COMPANY STATE 7/13/017 7/03/017
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 $110 $108 $2
Indiana Dry $110 $105 $5
Iowa Dry $110 $105 $5
Michigan Dry $100 $98 $2
Minnesota Dry $105 $100 $5
North Dakota Dry $120 $115 $5
New York Dry $125 $125 $0
South Dakota Dry $105 $105 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $108 $105 $3
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $112 $115 -$3
Iowa Dry $105 $105 $0
Michigan Dry $110 $110 $0
Minnesota Dry $105 $102 $3
Missouri Dry $125 $125 $0
Ohio Dry $112 $115 -$3
South Dakota Dry $100 $100 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $110 $108 $2
Wet $45 $45 $0
Illinois Dry $116 $112 $4
Nebraska Dry $110 $108 $2
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $105 $100 $5
Indiana Dry $105 $95 $10
Iowa Dry $105 $100 $5
Michigan Dry $105 $95 $10
Minnesota Dry $105 $95 $10
Nebraska Dry $105 $99 $6
New York Dry $135 $125 $10
North Dakota Dry $105 $100 $5
Ohio Dry $115 $98 $17
South Dakota Dry $100 $90 $10
Wisconsin Dry $100 $98 $2
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 $168 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $180 $180 $0
*Prices listed per ton.
Weekly Average $107 $104 $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

(SK/CZ)

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