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 3 cents lower at $107 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The DTN average dried distillers grains (DDG) spot price from the 39 locations DTN collects bids from was $107 for the week ended Aug. 24, three cents lower on average from two weeks ago.

Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Aug. 24 was at 87.60%, and the value of DDG relative to soybean meal was at 35.95%. The cost per unit of protein for DDG was $3.96, compared to the cost per unit of protein for soybean meal at $6.27.

A merchandiser in California told DTN the market was "very soft out here" with the drop in the board, collapsing canola meal values, and heat suppressing cow feed intake. Since August 1, the DTN Cash Index has lost 14 cents as of Aug. 24. Some merchandisers noted that the market was "sideways" the past few weeks and another said the market has been "dismal."

CIF NOLA (New Orleans, Louisiana) dried distillers grains with solubles, or DDGS, prices weakened in the past few weeks with August at $143 to $147, and August-September at $142 to $146. Barge movement could see interruptions and/or slowdowns as Hurricane Harvey makes landfall in the Texas Gulf, with heavy rains possibly causing flooding on the Mississippi River from Baton Rouge, Louisiana, to the Gulf of Mexico, depending on where the path of the storm goes. There is still nothing official on Vietnam returning to the U.S market, but rumors are circulating it may be September.

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A Regional Nutrition Conference was held earlier this month in Peru, organized by the U.S. Grains Council (USGC) with support from the U.S. Department of Agriculture's (USDA) Foreign Agricultural Service (FAS). Attendees included 126 participants from across the region, including Colombia, Peru, Ecuador, Costa Rica, Chile, the Dominican Republic, Mexico, Venezuela and Honduras. Many attendees expressed interest in further collaborating with the USGC, including evaluating DDGS in dairy cattle diets under tropical conditions, importing and distributing DDGS to smaller end-users in Ecuador and Peru, and evaluating DDGS corn oil in poultry diets in Colombia.

"There is overnight opportunity for increased DDGS and sorghum sales throughout the region with both current and potential users," said Marri Carrow Tejada, USGC regional director for the Western Hemisphere. "Educational activities such as this one increase awareness of our U.S. products with key decision makers in the livestock sector -- nutritionists. This, in turn, absolutely contributes to increased sales in the region."

CURRENT PREVIOUS CHANGE
COMPANY STATE 8/24/017 8/10/017
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 $110 $112 -$2
Iowa Dry $110 $110 $0
Michigan Dry $105 $105 $0
Minnesota Dry $105 $105 $0
North Dakota Dry $115 $115 $0
New York Dry $120 $125 -$5
South Dakota Dry $105 $105 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $108 $112 -$4
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $108 $110 -$2
Iowa Dry $108 $108 $0
Michigan Dry $105 $108 -$3
Minnesota Dry $108 $110 -$2
Missouri Dry $120 $120 $0
Ohio Dry $108 $110 -$2
South Dakota Dry $103 $103 $0
` `
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $114 $114 $0
Wet $45 $45 $0
Illinois Dry $125 $122 $3
Nebraska Dry $114 $114 $0
Wet $45 $45 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $110 $110 $0
Indiana Dry $103 $108 -$5
Iowa Dry $103 $108 -$5
Michigan Dry $100 $105 -$5
Minnesota Dry $100 $105 -$5
Nebraska Dry $102 $102 $0
New York Dry $120 $135 -$15
North Dakota Dry $100 $105 -$5
Ohio Dry $105 $110 -$5
South Dakota Dry $100 $100 $0
Wisconsin Dry $105 $110 -$5
Valero Energy Corp., San Antonio, TX (402-932-5901)
Indiana Dry $105 $110 -$5
Iowa Dry $105 $110 -$5
Minnesota Dry $105 $110 -$5
Nebraska Dry $108 $108 $0
Ohio Dry $110 $115 -$5
South Dakota Dry $95 $100 -$5
California $172 $172 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $176 $182 -$6
*Prices listed per ton.
Weekly Average $107 $110 -$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.
VALUE OF DDG VS. CORN & SOYBEAN MEAL
Settlement Price: Quote Date Bushel Short Ton
Corn 8/24/2017 $3.4200 $122.14
Soybean Meal 8/24/2017 $297.60
DDG Weekly Average Spot Price $107.00
DDG Value Relative to: 8/24 8/10
Corn 87.60% 84.21%
Soybean Meal 35.95% 37.39%
Cost Per Unit of Protein:
DDG $3.96 $4.07
Soybean Meal $6.27 $6.19
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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