Market Matters Blog

DDG Prices Weaker

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for DDG was $2 weaker at $110 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The DTN average dried distillers grains spot price (DDG) from the 39 locations DTN collects bids from, was $110 for the week ended Aug. 3, down $2 on average from one week ago.

Based on the average of those bids collected by DTN, the value of DDG relative to corn for the week ended Aug. 3 was at 84.73%, and the value of DDG relative to soybean meal was at 35.91%. The cost per unit of protein for DDG was $4.07, compared to the cost per unit of protein for soybean meal at $6.45.

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A merchandiser told DTN that it's been a quiet week with little news to affect the market either way, and the market felt "heavy." Informa Economics noted that, since the end of the July, buyers were pulling back, but "expect to see a little more volatility in mid-August when more contracts are typically executed. DDG prices saw an increase with the recent rally in corn and soybean meal, but with production meeting demand, expect prices to remain mostly range bound outside of some large deviation in corn or soybean meal prices."

CIF NOLA (New Orleans, Louisiana) dried distillers grains with solubles, or DDGS, prices were weaker from one week ago with August at $140 to $147 and August-September at $140 to $147. Other than China and Vietnam, exports have been good recently. Vietnam's Plant Protection Department visited the U.S. this week and is currently in New Orleans "assessing procedures." Market rumors point to them restarting U.S. imports in the next few months after being absent since mid-December 2016. So far, there has been no official statement from Vietnam as to what they plan to do next, but sellers are feeling optimistic.

CURRENT PREVIOUS CHANGE
COMPANY STATE 8/03/017 7/27/017
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 $112 $115 -$3
Michigan Dry $105 $105 $0
Minnesota Dry $105 $110 -$5
North Dakota Dry $120 $125 -$5
New York Dry $125 $130 -$5
South Dakota Dry $105 $110 -$5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $112 $112 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $115 $115 $0
Iowa Dry $110 $110 $0
Michigan Dry $112 $115 -$3
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 $112 $113 -$1
Wet $45 $45 $0
Illinois Dry $120 $120 $0
Nebraska Dry $112 $113 -$1
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $110 $115 -$5
Indiana Dry $110 $115 -$5
Iowa Dry $110 $115 -$5
Michigan Dry $105 $115 -$10
Minnesota Dry $105 $110 -$5
Nebraska Dry $106 $112 -$6
New York Dry $140 $140 $0
North Dakota Dry $105 $110 -$5
Ohio Dry $110 $115 -$5
South Dakota Dry $100 $105 -$5
Wisconsin Dry $110 $109 $1
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 $172 $178 -$6
Western Milling, Goshen, California (559-302-1074)
California Dry $186 $186 $0
*Prices listed per ton.
Weekly Average $110 $112 -$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.

VALUE OF DDG VS. CORN & SOYBEAN MEAL
Settlement Price: Quote Date Bushel Short Ton
Corn 8/3/2017 $3.6350 $129.82
Soybean Meal 8/3/2017 $306.30
DDG Weekly Average Spot Price $107.00
DDG Value Relative to: 8/3 7/27
Corn 84.73% 83.79%
Soybean Meal 35.91% 34.75%
Cost Per Unit of Protein:
DDG $4.07 $4.15
Soybean Meal $6.45 $6.79
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

(AG)

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