Market Matters Blog

DDG Prices Firm to $1 Higher

By Mary Kennedy , DTN Basis Analyst
DTN's average weekly spot price for DDG was unchanged at $112 per ton. (DTN file photo by Elaine Shein)

The DTN average dried distillers grains spot price (DDG) was $112 for the week ended July 27, up $1 from one week ago. Of the 39 locations from which DTN collects spot prices, seven bids were $2 to $5 higher with the balance of the prices unchanged.

Based on the average of the 39 bids DTN collects, the value of DDG relative to corn for the week ended July 27 was at 83.79% and the value of DDG relative to soybean meal was at 34.75%. The cost per unit of protein for DDG was $4.15, compared to the cost per unit of protein for soybean meal at $6.79.

A merchandiser told DTN that most of the support for prices is coming from the CIF NOLA (New Orleans, Louisiana) market. Another merchandiser mentioned that domestic demand has been steady as well, but as we near the end of the month, buying may slow. Expect DDG prices to continue to follow the corn market, which has been (and will continue to be) influenced by weather, creating the volatility in the cash corn price we have seen the past few weeks.

Informa Economics noted that DDG prices saw an increase with the recent rally in corn and soybean meal, but with production meeting demand, prices are likely to remain mostly range-bound outside of some large deviation in corn or soybean meal prices.

CIF NOLA dried distillers grains with solubles, or DDGS, prices for the week ended July 27 for August were $144 to $149 and August-September was at $145 to $150. There are reports that supplies on the East Coast are tight as more barges have been moving down the Mississippi River lately to cover shorts at the Gulf. Overall, exports remain pretty strong so far for the year, in spite of China and Vietnam being absent.

CURRENT PREVIOUS CHANGE
COMPANY STATE 7/27/017 7/20/017
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 $115 $0
Indiana Dry $115 $115 $0
Iowa Dry $115 $115 $0
Michigan Dry $105 $105 $0
Minnesota Dry $110 $110 $0
North Dakota Dry $125 $125 $0
New York Dry $130 $130 $0
South Dakota Dry $110 $110 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $112 $110 $2
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $115 $115 $0
Iowa Dry $110 $110 $0
Michigan Dry $115 $115 $0
Minnesota Dry $110 $110 $0
Missouri Dry $125 $125 $0
Ohio Dry $115 $115 $0
South Dakota Dry $100 $100 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $113 $113 $0
Wet $45 $45 $0
Illinois Dry $120 $120 $0
Nebraska Dry $113 $113 $0
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $115 $110 $5
Indiana Dry $115 $110 $5
Iowa Dry $115 $110 $5
Michigan Dry $115 $110 $5
Minnesota Dry $110 $110 $0
Nebraska Dry $112 $112 $0
New York Dry $140 $140 $0
North Dakota Dry $110 $110 $0
Ohio Dry $115 $115 $0
South Dakota Dry $105 $100 $5
Wisconsin Dry $109 $105 $4
Valero Energy Corp., San Antonio, TX (402-932-5901)
Indiana Dry $105 $105 $0
Iowa Dry $105 $105 $0
Minnesota Dry $105 $105 $0
Nebraska Dry $108 $108 $0
Ohio Dry $110 $110 $0
South Dakota Dry $95 $95 $0
California $178 $178 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $186 $187 -$1
*Prices listed per ton.
Weekly Average $112 $111 $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.
VALUE OF DDG VS. CORN & SOYBEAN MEAL
Settlement Price: Quote Date Bushel Short Ton
Corn 7/27/2017 $3.7425 $133.66
Soybean Meal 7/27/2017 $322.30
DDG Weekly Average Spot Price $107.00
DDG Value Relative to: 7/27 7/20/2017
Corn 83.79% 79.48%
Soybean Meal 34.75% 33.58%
Cost Per Unit of Protein:
DDG $4.15 $4.11
Soybean Meal $6.79 $6.73
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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