OMAHA (DTN) -- The DTN average distillers dried grain (DDG) spot price from the 39 locations DTN collects bids from was $143 for the week ended Jan. 18, 1 cent higher than the prior week.
Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Jan. 18 was at 113.91%, and the value of DDG relative to soybean meal was at 43.54%. The cost per unit of protein for DDG was $5.30, compared to the cost per unit of protein for soybean meal at $6.91, 39 cents higher versus last week (see chart below) as soymeal prices saw strong gains all week. The higher soybean meal price is causing more DDG demand for livestock feed rations, further adding support to prices.
A merchandiser out west told DTN that slow loadings of corn from the Midwest and strong values in the Midwest for modified DDG is keeping supplies out to the West Coast rather tight. Overall, supplies have been tight due to cold weather and plant slowdowns. That may change going forward as the recent EIA report showing ethanol plant output topped 1.0 million barrels per day (bpd) again after briefly dipping below the mark the week prior and for the first time since early October. For the week ending Jan. 12, EIA reported plant output up 65,000 bpd to 1.061 million bpd last week.
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The U.S. Grains Council (USGC) noted in its weekly price update that trade volume has been reported as "light" with sellers defending asking prices and buyers somewhat unwilling to chase prices higher. Prices for 40-foot containers to Southeast Asia are higher again this week, gaining $5 per metric ton (mt) on average. February shipments to Myanmar increased the most of any Asian destination this week, gaining $7/mt, while shipments to Indonesia and China increased $6/mt each, according to USGC.
CIF (cost, insurance and freight) NOLA (News Orleans, Louisiana) prices were stronger from one week ago, but January prices this week have backed off a little. This could partially be due to tight supplies as well as the U.S. river system still under siege from ice.
The Upper Ohio River was closed earlier in the week due to barge breakaways over the weekend in that area caused by heavy ice movement. There is still limited movement due to ice above the Hannibal Lock, but in the Lower Ohio River, Lock 52 and 53 are now open for traffic. The Illinois River is also plagued with floating ice, which is causing "significant tow size reduction" according to American Commercial Barge Line (ACBL). Also, conditions have deteriorated above Hennepin, (MM207) due to low temperatures and ice gorging. There is hope a warming trend over the weekend will bring some relief. ACBL also noted that there is a reduction in tow size in the Lower Mississippi River at MM483-487 due to low water and "lack of a defined channel."
|Bartlett and Company, Kansas City, MO (816-753-6300)|
|CHS, Minneapolis, MN (800-769-1066)|
|MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)|
|POET Nutrition, Sioux Falls, SD (888-327-8799)|
|United BioEnergy, Wichita, KS (316-616-3521)|
|U.S. Commodities, Minneapolis, MN (888-293-1640)|
|Valero Energy Corp, San Antonio, TX (402-932- 5299)|
|Western Milling, Goshen, California (559-302-1074)|
|*Prices listed per ton.|
|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|
|DDG Weekly Average Spot Price||$143.00|
|DDG Value Relative to:||1/18||1/12|
|Cost Per Unit of Protein:|
|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.|
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