Market Matters Blog

DDG Prices Steady to Weaker

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for dried distillers grains was at $147 per ton, down 1 cent versus last week, as prices at the Gulf were lower. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The average distillers dried grain (DDG) spot price from the 39 locations DTN collected bids from was $147 for the week ended Feb. 8, 1 cent weaker on average than a week ago.

Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Feb. 8 was at 112.53%, and the value of DDG relative to soybean meal was at 43.02%. The cost per unit of protein for DDG was $5.44, compared to the cost per unit of protein for soybean meal at $7.19. DDG prices are still a good buy compared to soybean meal after meal futures' recent rally.

Domestic prices were mixed as the tight supplies we have witnessed since the start of the year have loosened some, according to merchandisers. Winter storms have slowed some movement, but overall, prices remain steady for the most part. However, as weather warms, that may change as demand could slow.

The U.S. Grains Council (USGC) noted in its weekly price update that FOB NOLA DDGS are slightly lower this week at $203/mt, following CIF NOLA prices which dropped to $191/mt. Merchandisers are reporting that, since CIF NOLA values dropped last week, prices have softened for product destined for Asia. However, the lower prices have increased buying activity and exporters are reporting large volumes sold/exported.

The U.S. Census Bureau said Tuesday that U.S. exports of distillers grains totaled 968,700 metric tons in December, up 15% from a year ago. Mexico was the top export destination again in December, accounting for 21% of the total and followed by South Korea, Vietnam, and Thailand. For all of 2017, exports of U.S. distillers grains were down 2% from a year ago, their second annual decline. DTN Market Analyst Todd Hultman noted, "It was interesting that China came in eleventh in December with their largest shipment of distillers grains since May."

CURRENT CURRENT CHANGE
COMPANY STATE 2/8/2018 2/1/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $170 $170 $0
Modified $85 $85 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $150 $160 -$10
Indiana Dry $150 $150 $0
Iowa Dry $145 $140 $5
Michigan Dry $160 $160 $0
Minnesota Dry $135 $140 -$5
North Dakota Dry $148 $150 -$2
New York Dry $165 $170 -$5
South Dakota Dry $145 $145 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $155 $155 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $160 $158 $2
Iowa Dry $138 $138 $0
Michigan Dry $165 $156 $9
Minnesota Dry $138 $138 $0
Missouri Dry $160 $158 $2
Ohio Dry $160 $156 $4
South Dakota Dry $140 $143 -$3
` `
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $150 $150 $0
Wet $50 $60 -$10
Illinois Dry $155 $155 $0
Nebraska Dry $150 $150 $0
Wet $50 $60 -$10
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $145 $150 -$5
Indiana Dry $145 $145 $0
Iowa Dry $140 $145 -$5
Michigan Dry $140 $140 $0
Minnesota Dry $135 $140 -$5
Nebraska Dry $150 $155 -$5
New York Dry $165 $165 $0
North Dakota Dry $150 $155 -$5
Ohio Dry $150 $150 $0
South Dakota Dry $140 $140 $0
Wisconsin Dry $140 $140 $0
Valero Energy Corp, San Antonio Texas (210-345-3362)
Indiana Dry $145 $145 $0
Iowa Dry $135 $135 $0
Minnesota Dry $135 $135 $0
Nebraska Dry $150 $150 $0
Ohio Dry $145 $145 $0
South Dakota Dry $128 $128 $0
California $197 $208 -$11
Western Milling, Goshen, California (559-302-1074)
California Dry $210 $212 -$2
*Prices listed per ton.
Weekly Average $147 $148 -$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 2/8/2018 $3.6575 $130.63
Soybean Meal 2/8/2018 $341.70
DDG Weekly Average Spot Price $147.00
DDG Value Relative to: 2/8 2/1
Corn 112.53% 115.32%
Soybean Meal 43.02% 44.61%
Cost Per Unit of Protein:
DDG $5.44 $5.52
Soybean Meal $7.19 $7.03
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

(CZ)

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