Market Matters Blog
DDG Prices Steady
OMAHA (DTN) -- The DTN average dried distillers grains (DDG) spot price from the 39 locations DTN collects bids from was $109 for the week ended Sept. 21, up $1 from one week ago.
Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Sept. 21 was at 87.13%, and the value of DDG relative to soybean meal was at 35.27%. The cost per unit of protein for DDG was $4.04, compared to the cost per unit of protein for soybean meal at $6.51.
Merchandisers told me that the market has been quiet and bids are mixed depending on where supplies may be tight due to plant fall maintenance.
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CIF NOLA (New Orleans, Louisiana) DDGS prices were firm with September at $145, and October at $145 to $150 and O/N/D at $144 to $151. Informa Economics noted that DDG market has not seen the demand return to year-ago levels prior to the Vietnam ban last year. "One reason could be because exports had sharply risen prior to the ban, which would suggest that Vietnam may have been stockpiling product. If that is the case, then that would explain why we haven't seen the demand return to prior levels."
Even still, export prices have remained steady, but anything moving by barge to the Gulf will encounter slowdowns as water levels along the river system are falling. There are low-water restrictions in the center of the lower Mississippi River and the river level on Friday at Memphis is 3.4 feet below zero gauge.
U.S. Grains Council (USGC) noted in a news release Sept. 21 that due to record amounts of milk production and the country's dairy industry, New Zealand is feeding triple the amount of U.S. DDGS over last year. "As a result, grain buyers significantly increased purchases with two combination vessels discharging U.S. DDGS in the port of Tauranga in September 2017. New Zealand has purchased 113,000 metric tons of U.S. DDGS in the 2016/2017 marketing year (September-July), up significantly from the 37,000 tons imported the same time the year prior. While this market is currently small, these sales represent the potential for demand growth."
| CURRENT | PREVIOUS | CHANGE | |||
| COMPANY | STATE | 9/21/2017 | 9/14/2017 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $122 | $122 | $0 | |
| Modified | $60 | $60 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $110 | $115 | -$5 | |
| Indiana | Dry | $108 | $113 | -$5 | |
| Iowa | Dry | $110 | $110 | $0 | |
| Michigan | Dry | $105 | $103 | $2 | |
| Minnesota | Dry | $108 | $110 | -$2 | |
| North Dakota | Dry | $108 | $110 | -$2 | |
| New York | Dry | $115 | $115 | $0 | |
| South Dakota | Dry | $108 | $108 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $110 | $108 | $2 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $108 | $108 | $0 | |
| Iowa | Dry | $105 | $105 | $0 | |
| Michigan | Dry | $108 | $108 | $0 | |
| Minnesota | Dry | $105 | $105 | $0 | |
| Missouri | Dry | $115 | $115 | $0 | |
| Ohio | Dry | $108 | $108 | $0 | |
| South Dakota | Dry | $105 | $105 | $0 | |
| ` | ` | ||||
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $118 | $118 | $0 | |
| Wet | $50 | $50 | $0 | ||
| Illinois | Dry | $124 | $127 | -$3 | |
| Nebraska | Dry | $118 | $118 | $0 | |
| Wet | $50 | $50 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $115 | $111 | $4 | |
| Indiana | Dry | $110 | $105 | $5 | |
| Iowa | Dry | $105 | $105 | $0 | |
| Michigan | Dry | $105 | $105 | $0 | |
| Minnesota | Dry | $105 | $105 | $0 | |
| Nebraska | Dry | $110 | $105 | $5 | |
| New York | Dry | $120 | $120 | $0 | |
| North Dakota | Dry | $115 | $105 | $10 | |
| Ohio | Dry | $110 | $110 | $0 | |
| South Dakota | Dry | $105 | $105 | $0 | |
| Wisconsin | Dry | $105 | $105 | $0 | |
| Valero Energy Corp., San Antonio, TX (402-932-5901) | |||||
| Indiana | Dry | $112 | $110 | $2 | |
| Iowa | Dry | $100 | $100 | $0 | |
| Minnesota | Dry | $100 | $100 | $0 | |
| Nebraska | Dry | $105 | $105 | $0 | |
| Ohio | Dry | $115 | $110 | $5 | |
| South Dakota | Dry | $95 | $95 | $0 | |
| California | $165 | $165 | $0 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $180 | $180 | $0 | |
| *Prices listed per ton. | |||||
| Weekly Average | $109 | $108 | $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 | 9/21/2017 | $3.5025 | $125.09 |
| Soybean Meal | 9/21/2017 | $309.00 | |
| DDG Weekly Average Spot Price | $108.00 | ||
| DDG Value Relative to: | 9/21 | 9/14 | |
| Corn | 87.13% | 88.48% | |
| Soybean Meal | 35.27% | 34.98% | |
| Cost Per Unit of Protein: | |||
| DDG | $4.04 | $4.00 | |
| Soybean Meal | $6.51 | $6.50 | |
| 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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