Market Matters Blog

DDG Weekly Update: 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 $134 per ton, as demand remains firm. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The DTN average distillers dried grain (DDG) spot price from the 39 locations DTN collects bids from was $134 for the week ended Dec. 21, 1 cent higher than one week ago.

Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Dec. 21 was at 106.81%, and the value of DDG relative to soybean meal was at 42.65%. The cost per unit of protein for DDG was $4.96, compared to the cost per unit of protein for soybean meal at $6.61.

Merchandisers noted that while the market is still firm, prices have "calmed down" a bit from prior weeks. As Christmas and the New Year's holidays get closer, production may slow along with end users wanting to buy enough product to stay covered in front of the long weekend and the upcoming holiday week.

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The U.S. Grains Council (USGC) said in their weekly price update that DDGS CIF NOLA barge prices fell this week, even as FOB NOLA DDGS gained $3/metric tons to end at $203/MT. "The diverging price trends between these two destinations may indicate a period of stability coming for DDGS prices in the U.S. FOB NOLA DDGS are valued at 59% of FOB NOLA soybean meal and 130% of FOB NOLA corn. DDGS delivered via rail to the PNW ended $3/MT higher at $220 this week."

Barges have been stalled on the river as rock pinnacle removal at Thebes continues to stop traffic during daylight hours, seven days a week until the work is finished. Also, the Lower Mississippi River (LMR) mile marker (MM) 770 to 782 was closed earlier in the week when two barges ran aground due to low water. Traffic resumed by Thursday after the barges were finally removed and the river reopened, but traffic on both sides of the closure was stalled until the barges were freed. On top of all of that, drafts have been lowered once again from St. Louis to Cairo and now are at 10 feet, 6 inches max after being lowered last week to 11 feet due to the low water conditions in the LMR.

On the international front, Asian prices are firm with active demand for nearby shipments. "Some traders are claiming Vietnamese buyers are looking to buy January-March shipments. With other Asian prices heading higher, sellers are yet unwilling to lower asking prices," said USGC. The average price for 40-foot containers destined for Southeast Asia reached $222/MT this week, with buyers paying $3/MT more on average. Prices for product to Taiwan, Japan and Bangladesh led the way, rising $4/MT while all reported destinations increased at least $2/MT.

CURRENT PREVIOUS CHANGE
COMPANY STATE 12/21/2017 12/14/2017
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $150 $150 $0
Modified $75 $75 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $140 $135 $5
Indiana Dry $138 $135 $3
Iowa Dry $128 $128 $0
Michigan Dry $140 $130 $10
Minnesota Dry $130 $130 $0
North Dakota Dry $145 $145 $0
New York Dry $135 $134 $1
South Dakota Dry $137 $137 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $145 $140 $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $130 $130 $0
Iowa Dry $125 $125 $0
Michigan Dry $130 $130 $0
Minnesota Dry $125 $125 $0
Missouri Dry $140 $140 $0
Ohio Dry $130 $130 $0
South Dakota Dry $135 $135 $0
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United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $140 $140 $0
Wet $65 $65 $0
Illinois Dry $148 $148 $0
Nebraska Dry $140 $140 $0
Wet $65 $65 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $140 $140 $0
Indiana Dry $130 $130 $0
Iowa Dry $130 $130 $0
Michigan Dry $125 $125 $0
Minnesota Dry $118 $118 $0
Nebraska Dry $145 $145 $0
New York Dry $140 $140 $0
North Dakota Dry $145 $145 $0
Ohio Dry $135 $135 $0
South Dakota Dry $125 $125 $0
Wisconsin Dry $130 $130 $0
Valero Energy Corp., San Antonio, TX (402-932-5901)
Indiana Dry $125 $125 $0
Iowa Dry $125 $125 $0
Minnesota Dry $120 $120 $0
Nebraska Dry $140 $140 $0
Ohio Dry $135 $135 $0
South Dakota Dry $120 $120 $0
California $195 $195 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $208 $208 $0
*Prices listed per ton.
Weekly Average $134 $133 $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 12/21/2017 $3.5125 $125.45
Soybean Meal 12/21/2017 $314.20
DDG Weekly Average Spot Price $134.00
DDG Value Relative to: 12/21 12/14
Corn 106.81% 110.75%
Soybean Meal 42.65% 41.40%
Cost Per Unit of Protein:
DDG $4.96 $4.93
Soybean Meal $6.61 $6.76
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

(BAS/CZ)

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