Market Matters Blog
DDG Prices Sharply Higher
OMAHA (DTN) -- The U.S. Grains Council (USGC) reported Nov. 9 that an announcement was posted on China's Ministry of Foreign Affairs' website that the country would again allow U.S. distiller's dried grains with solubles (DDGS) to be imported without charging an 11% value added tax (VAT), potentially altering global DDGS market dynamics for the better.
However, while the VAT has been removed, the anti-dumping and countervailing duties remain. But it's a start in the right direction.
The DTN average dried distillers grains (DDG) spot price from the 39 locations DTN collects bids from was $117 for the week ended Nov. 9, 4 cents higher from two weeks ago. Merchandisers noted that markets have been climber higher as demand is firming with the recent onset of colder temperatures, especially this week in parts of the U.S. where winter is expected to make an appearance through the weekend.
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However, some merchandisers were in agreement that support for prices came from the China news. One merchandiser told me the China announcement "priced itself in this week," moving the market higher on top of the strength seen in the domestic market the past few weeks.
Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Nov. 9 was at 95.93%, and the value of DDG relative to soybean meal was at 37.52%. The cost per unit of protein for DDG was $4.33, compared to the cost per unit of protein for soybean meal at $6.56.
CURRENT | PREVIOUS | CHANGE | |||
COMPANY | STATE | 11/8/2017 | 10/26/2017 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $132 | $125 | $7 | |
Modified | $68 | $65 | $3 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $118 | $115 | $3 | |
Indiana | Dry | $117 | $115 | $2 | |
Iowa | Dry | $116 | $110 | $6 | |
Michigan | Dry | $112 | $110 | $2 | |
Minnesota | Dry | $118 | $110 | $8 | |
North Dakota | Dry | $128 | $120 | $8 | |
New York | Dry | $122 | $120 | $2 | |
South Dakota | Dry | $118 | $110 | $8 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $128 | $125 | $3 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $120 | $110 | $10 | |
Iowa | Dry | $117 | $105 | $12 | |
Michigan | Dry | $120 | $110 | $10 | |
Minnesota | Dry | $115 | $105 | $10 | |
Missouri | Dry | $125 | $115 | $10 | |
Ohio | Dry | $120 | $110 | $10 | |
South Dakota | Dry | $115 | $105 | $10 | |
` | ` | ||||
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $140 | $118 | $22 | |
Wet | $60 | $50 | $10 | ||
Illinois | Dry | $0 | $0 | $0 | |
Nebraska | Dry | $140 | $118 | $22 | |
Wet | $60 | $50 | $10 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $120 | $115 | $5 | |
Indiana | Dry | $110 | $110 | $0 | |
Iowa | Dry | $118 | $110 | $8 | |
Michigan | Dry | $110 | $110 | $0 | |
Minnesota | Dry | $115 | $110 | $5 | |
Nebraska | Dry | $135 | $125 | $10 | |
New York | Dry | $125 | $125 | $0 | |
North Dakota | Dry | $130 | $115 | $15 | |
Ohio | Dry | $115 | $110 | $5 | |
South Dakota | Dry | $120 | $110 | $10 | |
Wisconsin | Dry | $115 | $110 | $5 | |
Valero Energy Corp., San Antonio, TX (402-932-5901) | |||||
Indiana | Dry | $115 | $110 | $5 | |
Iowa | Dry | $112 | $110 | $2 | |
Minnesota | Dry | $115 | $110 | $5 | |
Nebraska | Dry | $128 | $125 | $3 | |
Ohio | Dry | $118 | $115 | $3 | |
South Dakota | Dry | $105 | $105 | $0 | |
California | $188 | $180 | $8 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $0 | $0 | $0 | |
*Prices listed per ton. | |||||
Weekly Average | $117 | $113 | $4 | ||
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 |
VALUE OF DDG VS. CORN & SOYBEAN MEAL | |||
Settlement Price: | Quote Date | Bushel | Short Ton |
Corn | 11/9/2017 | $3.4150 | $121.96 |
Soybean Meal | 11/9/2017 | $311.80 | |
DDG Weekly Average Spot Price | $117.00 | ||
DDG Value Relative to: | 11/9 | 10/26 | |
Corn | 95.93% | 90.27% | |
Soybean Meal | 37.52% | 36.20% | |
Cost Per Unit of Protein: | |||
DDG | $4.33 | $4.19 | |
Soybean Meal | $6.56 | $6.57 | |
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 Mary Kennedy on Twitter @MaryCKenn
(CZ)
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