Market Matters Blog

DDG Prices Jump Higher

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for DDG was 7 cents higher at $124 per ton, as demand continues to rise. (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 $124 for the week ended Nov. 16, 7 cents higher from the prior week.

Merchandisers noted that markets have been climbing higher with the arrival of seasonal demand, which is catching some plants a little short of product. That is also due in part to the renewal of shipments to Vietnam after the fumigation issue was resolved in September, a market that exporters had been unable to partake in since one year ago.

Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Nov. 16 was at 103.18%, and the value of DDG relative to soybean meal was at 39.94%. The cost per unit of protein for DDG was $4.59, compared to the cost per unit of protein for soybean meal at $6.54.

CIF NOLA (New Orleans, Louisiana) prices for November were at $150 to $155 per ton and December was at $152 to $156. Barges are in the process of heading south from the UMR to get downriver before locks start to close for the winter. Barges leaving St. Paul and south of there (MM857-MM640) need to be on their way by Sunday, Nov. 19, to make it past the final lock where the river closes for the winter. The last barges leaving the southern UMR down to MM240, need to be moving by Dec. 3.

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DDGS NEWS

The U.S. Grains Council (USGC) reported that shipping containers containing 7,850 metric tons of U.S. distillers dried grains with solubles (DDGS) arrived into the Port of Ho Chi Minh City, Vietnam, between Oct. 25 and Nov. 10, 2017, among the first orders filled following a September announcement by the Vietnamese government that it would lift its suspension of DDGS imports and ease fumigation requirements for U.S. corn and wheat imports. Manuel Sanchez, USGC regional director for South and Southeast Asia, was on site as the containers of U.S. DDGS arrived.

The containers were among the first to arrive in Vietnam following the government lifting a suspension put in place in October 2016.

"We are glad to see the first shipment and arrival of U.S. DDGS back into the Vietnamese market," said Sanchez. "The Council collaborated closely with our own government, the Vietnamese government and industries in both countries to resolve this trade disruption."

Last week, DDGS imports into China saw a bit of good news when China's Ministry of Foreign Affairs said they would allow U.S. distillers dried grains with solubles (DDGS) to be imported without charging an 11% value added tax (VAT). While the VAT has been removed, the anti-dumping and countervailing duties remain, but shippers agree that this news may be one small step toward China possibly easing up on the current penalties.

CURRENT PREVIOUS CHANGE
COMPANY STATE 11/16/2017 11/9/2017
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $132 $132 $0
Modified $68 $68 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $122 $118 $4
Indiana Dry $122 $117 $5
Iowa Dry $120 $116 $4
Michigan Dry $112 $112 $0
Minnesota Dry $125 $118 $7
North Dakota Dry $135 $128 $7
New York Dry $132 $122 $10
South Dakota Dry $135 $118 $17
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $130 $128 $2
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $125 $120 $5
Iowa Dry $120 $117 $3
Michigan Dry $125 $120 $5
Minnesota Dry $120 $115 $5
Missouri Dry $135 $125 $10
Ohio Dry $125 $120 $5
South Dakota Dry $130 $115 $15
` `
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $140 $140 $0
Wet $60 $60 $0
Illinois Dry $140 $140 $0
Nebraska Dry $140 $140 $0
Wet $60 $60 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $120 $120 $0
Indiana Dry $110 $110 $0
Iowa Dry $118 $118 $0
Michigan Dry $110 $110 $0
Minnesota Dry $115 $115 $0
Nebraska Dry $135 $135 $0
New York Dry $125 $125 $0
North Dakota Dry $130 $130 $0
Ohio Dry $115 $115 $0
South Dakota Dry $120 $120 $0
Wisconsin Dry $115 $115 $0
Valero Energy Corp., San Antonio, TX (402-932-5901)
Indiana Dry $120 $115 $5
Iowa Dry $115 $112 $3
Minnesota Dry $120 $115 $5
Nebraska Dry $130 $128 $2
Ohio Dry $130 $118 $12
South Dakota Dry $110 $105 $5
California $188 $188 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $206 $215 -$9
*Prices listed per ton.
Weekly Average $124 $117 $7
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 11/16/2017 $3.3650 $120.18
Soybean Meal 11/16/2017 $310.50
DDG Weekly Average Spot Price $124.00
DDG Value Relative to: 11/16 11/9
Corn 103.18% 95.93%
Soybean Meal 39.94% 37.52%
Cost Per Unit of Protein:
DDG $4.59 $4.33
Soybean Meal $6.54 $6.56
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

(AG)

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