Market Matters Blog

DDG Prices Mixed

By Mary Kennedy , DTN Basis Analyst
DTN's average weekly spot price for DDG was unchanged 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. 10, unchanged 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. 10 was at 84.21%, and the value of DDG relative to soybean meal was at 37.39%. The cost per unit of protein for DDG was $4.07, compared to the cost per unit of protein for soybean meal at $6.19.

Merchandisers told DTN that prices are steady and a little weaker in spots. But, so far, the losses in the cash corn price this week haven't had a big impact on prices.

Informa Economics noted that, "Prices have been range-bound in previous weeks, but expect to see a little more volatility in the coming weeks as more contracts are typically executed coupled with the USDA forecasting production above previous expectations for corn and soybeans. Expect prices to remain mostly range-bound outside of some large deviation in corn or soybean meal prices. With strong demand paired with higher USDA forecast prices, expect prices to trade near the softer end of the range."

CIF NOLA (New Orleans, Louisiana) dried distillers grains with solubles, or DDGS, prices for August are at $143 to $149, and August-September are at $143 to $149. U.S. Grains Council (USGC) noted that as the marketing year for corn comes to an end, they have been seeing increased demand for U.S. DDGS as a result of price and efforts to promote the product in a diverse set of markets.

"Sales of U.S. DDGS dropped significantly from the two largest traditional markets -- China and Vietnam," said the council. "While this void had a substantial impact, it left ample supply for other world buyers to purchase -- and USGC programs throughout the world are helping end-users learn how to incorporate U.S. DDGS into their rations.

"As a result, overall purchases are only just behind last year's export pace at 9.32 million tons," said USGC. "In contrast, exports to Mexico, this year's top market, are up 9% year-over-year to 1.69 million tons. Turkey now ranks as the second-largest market for U.S. DDGS with exports that nearly doubled year-over-year to 1.11 million tons, the largest amount since the country started purchasing DDGS in 2004/2005. U.S. DDGS exports to South Korea and the European Union also set new sales records at 847,000 tons and 792,000 tons, respectively."

CURRENT PREVIOUS CHANGE
COMPANY STATE 8/10/017 8/03/017
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 $115 $115 $0
Indiana Dry $112 $115 -$3
Iowa Dry $110 $112 -$2
Michigan Dry $105 $105 $0
Minnesota Dry $105 $105 $0
North Dakota Dry $115 $120 -$5
New York Dry $125 $125 $0
South Dakota Dry $105 $105 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $112 $112 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $110 $115 -$5
Iowa Dry $108 $110 -$2
Michigan Dry $108 $112 -$4
Minnesota Dry $110 $110 $0
Missouri Dry $120 $125 -$5
Ohio Dry $110 $115 -$5
South Dakota Dry $103 $100 $3
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United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $114 $112 $2
Wet $45 $45 $0
Illinois Dry $122 $120 $2
Nebraska Dry $114 $112 $2
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $110 $110 $0
Indiana Dry $108 $110 -$2
Iowa Dry $108 $110 -$2
Michigan Dry $105 $105 $0
Minnesota Dry $105 $105 $0
Nebraska Dry $102 $106 -$4
New York Dry $135 $140 -$5
North Dakota Dry $105 $105 $0
Ohio Dry $110 $110 $0
South Dakota Dry $100 $100 $0
Wisconsin Dry $110 $110 $0
Valero Energy Corp., San Antonio, TX (402-932-5901)
Indiana Dry $110 $105 $5
Iowa Dry $110 $105 $5
Minnesota Dry $110 $105 $5
Nebraska Dry $108 $108 $0
Ohio Dry $115 $110 $5
South Dakota Dry $100 $95 $5
California $172 $172 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $182 $186 -$4
*Prices listed per ton.
Weekly Average $110 $110 $0
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 8/10/2017 $3.5725 $127.59
Soybean Meal 8/10/2017 $294.20
DDG Weekly Average Spot Price $107.00
DDG Value Relative to: 8/10 8/3
Corn 84.21% 84.73%
Soybean Meal 37.39% 35.91%
Cost Per Unit of Protein:
DDG $4.07 $4.07
Soybean Meal $6.19 $6.45
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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