Market Matters Blog

DDG Prices Firm

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 $111 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 $111 for the week ended Oct. 5, 1 cent higher on average than one week ago. Merchandisers have noted that there are still a few spots down in Nebraska for fall maintenance where product is short and bids there were higher this week. However, once plants finish up fall shutdowns, prices will likely soften.

Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Oct. 5 was at 88.92%, and the value of DDG relative to soybean meal was at 35.47%. The cost per unit of protein for DDG was $4.11, compared to the cost per unit of protein for soybean meal at $6.59.

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CIF NOLA (New Orleans, Louisiana) DDG prices were steady with October at $145 to $153, and November and December at $145 to $151. Barge traffic may improve up river as heavy rains in the upper Midwest have started to help fill rivers in the Upper Mississippi River. Rain is also forecasted for the South, which may prove beneficial to the U.S. river system, but the Mississippi River is not out of the woods yet as water levels in the Lower Mississippi River down to the Gulf are still falling. The Mississippi River at Memphis is still below zero gauge at -6.1 feet as of Oct. 5, and the entire LMR is still facing low water restrictions. Lock repairs on the Illinois River will slow traffic through at least the second week of October. Repairs at Lock 52 and 53 in the lower Ohio River are ongoing and excessive delays are occurring, according to barge lines.

CURRENT PREVIOUS CHANGE
COMPANY STATE 10/5/2017 9/28/2017
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 $115 $0
Indiana Dry $108 $108 $0
Iowa Dry $110 $110 $0
Michigan Dry $106 $105 $1
Minnesota Dry $108 $108 $0
North Dakota Dry $115 $115 $0
New York Dry $120 $115 $5
South Dakota Dry $108 $108 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $115 $112 $3
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $110 $110 $0
Iowa Dry $105 $105 $0
Michigan Dry $110 $110 $0
Minnesota Dry $105 $105 $0
Missouri Dry $115 $115 $0
Ohio Dry $110 $110 $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 $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 $115 $0
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 $115 $0
Iowa Dry $105 $100 $5
Minnesota Dry $105 $100 $5
Nebraska Dry $123 $105 $18
Ohio Dry $115 $115 $0
South Dakota Dry $95 $95 $0
California $173 $170 $3
Western Milling, Goshen, California (559-302-1074)
California Dry $185 $183 $2
*Prices listed per ton.
Weekly Average $111 $110 $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 10/5/2017 $3.4950 $124.82
Soybean Meal 10/5/2017 $312.90
DDG Weekly Average Spot Price $111.00
DDG Value Relative to: 10/5 9/28
Corn 88.92% 87.37%
Soybean Meal 35.85% 35.85%
Cost Per Unit of Protein:
DDG $4.11 $4.07
Soybean Meal $6.59 $6.46
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

(BAS/SK)

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