Market Matters Blog

DDG Prices Higher With Strength in Corn

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for DDG was higher at $111 per ton. (DTN file photo by Elaine Shein)

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The DTN average dried distillers grains spot price (DDG) was $111 for the week ended July 20, up $4 from one week ago. Of the 39 locations from which DTN collects spot prices, nearly all bids were in a range of $2 to $10 higher with the balance of the prices unchanged.

The value of DDG relative to corn for the week ended July 20 was at 79.48% and the value of DDG relative to soybean meal was at 33.58%. The cost per unit of protein for DDG was $4.44, compared to the cost per unit of protein for soybean meal at $6.96.

Merchandisers all agreed that the higher cash corn price was a boost for the DDG market. Along with that, the higher price of soybeans pulled meal higher, also supportive to DDG market. Informa Economic noted the relative price of Iowa distillers dried grains to corn futures is currently 77%, which is below the 3-year average of 110%. "Typically the relative price to corn futures decreases from July to August by about 5%. The relative value to soybean meal futures is currently below its 3-year average of 38%. Expect price volatility in the coming weeks as corn and soybean meal production expectations are in a weather market," Informa wrote.

CIF NOLA (New Orleans, Louisiana) dried distillers grains with solubles, or DDGS, prices for the week ended July 20 were higher at $150 to $156 for July, FH August was $146 to $156 and LH August was at $145-$153. Export values continue to be supported by the barge market, according to a few merchandisers. There are shorts that need covered for the first part of August and that can be seen in the carry from July/first half August over the last half August bids.

CURRENT PREVIOUS CHANGE
COMPANY STATE 7/20/017 7/13/017
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 $115 $110 $5
Indiana Dry $115 $110 $5
Iowa Dry $115 $110 $5
Michigan Dry $105 $100 $5
Minnesota Dry $110 $105 $5
North Dakota Dry $125 $120 $5
New York Dry $130 $125 $5
South Dakota Dry $110 $105 $5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $110 $108 $2
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $115 $112 $3
Iowa Dry $110 $105 $5
Michigan Dry $115 $110 $5
Minnesota Dry $110 $105 $5
Missouri Dry $125 $125 $0
Ohio Dry $115 $112 $3
South Dakota Dry $100 $100 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $113 $110 $3
Wet $45 $45 $0
Illinois Dry $120 $116 $4
Nebraska Dry $113 $110 $3
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $110 $105 $5
Indiana Dry $110 $105 $5
Iowa Dry $110 $105 $5
Michigan Dry $110 $105 $5
Minnesota Dry $110 $105 $5
Nebraska Dry $112 $105 $7
New York Dry $140 $135 $5
North Dakota Dry $110 $105 $5
Ohio Dry $115 $115 $0
South Dakota Dry $100 $100 $0
Wisconsin Dry $105 $100 $5
Valero Energy Corp., San Antonio, TX (402-932-5901)
Indiana Dry $105 $97 $8
Iowa Dry $105 $98 $7
Minnesota Dry $105 $100 $5
Nebraska Dry $108 $100 $8
Ohio Dry $110 $108 $2
South Dakota Dry $95 $90 $5
California $178 $168 $10
Western Milling, Goshen, California (559-302-1074)
California Dry $187 $180 $7
*Prices listed per ton.
Weekly Average $111 $107 $4
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.
VALUE OF DDG VS. CORN & SOYBEAN MEAL
Settlement Price: Quote Date Bushel Short Ton
Corn 7/20/2017 $3.9100 $139.64
Soybean Meal 7/20/2017 $330.50
DDG Weekly Average Spot Price $107.00
DDG Value Relative to: 7/20/2017 7/13/2017
Corn 79.48% 82.99%
Soybean Meal 33.58% 33.77%
Cost Per Unit of Protein:
DDG $4.44 $4.28
Soybean Meal $6.96 $6.67
Notes:
Corn and soybean prices take from DTN Market Quotes. DDG price
represents the average spot price from Midwest companies
collected on Thursday afternoons. Soybean meal cost per unit
of protein is cost per ton divided by 47.5. DDG cost per unit
of protein is cost per ton divided by 27.

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

Follow her on Twitter @MaryCKenn

(CZ)

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