Market Matters Blog

DDG Prices Steady

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for DDG was $1 higher than last week at $109 per ton, but markets this week were mixed. (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 $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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