Market Matters Blog

DDG Prices Slightly Higher

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for DDG was 1 cent higher at $110 per ton, as markets remain firm. (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 $110 for the week ended Sept. 28, 1 cent higher on average than one week ago. One merchandiser told me that it's been a "boring" week and others noted that bids were higher in areas where fall maintenance was still going on.

Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Sept. 28 was at 87.37%, and the value of DDG relative to soybean meal was at 35.85%. The cost per unit of protein for DDG was $4.07, compared to the cost per unit of protein for soybean meal at $6.46.

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CIF NOLA (New Orleans, Louisiana) DDGS prices were firm with spot, loaded "afloat" barges at 150 to 153, September at $150, FH October at $149 and all of October at $148 to $152. River conditions are getting worse for barges moving up and/or down river. Low-water restrictions are in place for the Lower Mississippi River around Memphis and nearby areas. River sources tell me that low water in these areas are causing delays up to five days and tows on the LMR have been reduced by five barges. However, most areas up and down the river system are experiencing heavy congestion due to low water, lock repairs and pinnacle (rock) removal

U.S. Grains Council (USGC) noted in their Sept. 28 weekly Global Update that since NAFTA entered into force in 1994, "exports of corn in all forms to Canada have increased 2.5 times, including a six-fold increase in corn exports, an almost 10-fold increase for DDGS and corn gluten feed/meal and a 90-fold increase for ethanol. The Council is working to capture even more Canadian demand for feed ingredients by emphasizing the nutritional, economic and logistical advantages of U.S. DDGS. Canada currently ranks as the seventh largest market for U.S. DDGS this marketing year with more than 607,000 tons of U.S. DDGS purchased (Sept. 2016-July 2017), a 20% increase year-over-year."

CURRENT PREVIOUS CHANGE
COMPANY STATE 9/28/2017 9/21/2017
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 $115 $110 $5
Indiana Dry $108 $108 $0
Iowa Dry $110 $110 $0
Michigan Dry $105 $105 $0
Minnesota Dry $108 $108 $0
North Dakota Dry $115 $108 $7
New York Dry $115 $115 $0
South Dakota Dry $108 $108 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $112 $110 $2
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $110 $108 $2
Iowa Dry $105 $105 $0
Michigan Dry $110 $108 $2
Minnesota Dry $105 $105 $0
Missouri Dry $115 $115 $0
Ohio Dry $110 $108 $2
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 $124 $0
Nebraska Dry $118 $118 $0
Wet $50 $50 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $115 $115 $0
Indiana Dry $110 $110 $0
Iowa Dry $105 $105 $0
Michigan Dry $105 $105 $0
Minnesota Dry $105 $105 $0
Nebraska Dry $115 $110 $5
New York Dry $120 $120 $0
North Dakota Dry $115 $115 $0
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 $115 $112 $3
Iowa Dry $100 $100 $0
Minnesota Dry $100 $100 $0
Nebraska Dry $105 $105 $0
Ohio Dry $115 $115 $0
South Dakota Dry $95 $95 $0
California $170 $167 $3
Western Milling, Goshen, California (559-302-1074)
California Dry $183 $180 $3
*Prices listed per ton.
Weekly Average $110 $109 $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 9/28/2017 $3.5250 $125.89
Soybean Meal 9/28/2017 $306.80
DDG Weekly Average Spot Price $110.00
DDG Value Relative to: 9/28 9/21
Corn 87.37% 87.13%
Soybean Meal 35.85% 35.27%
Cost Per Unit of Protein:
DDG $4.07 $4.04
Soybean Meal $6.46 $6.51
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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