Market Matters Blog

DDG Prices Higher

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for dried distillers grains was 1 cent higher at $152 per ton thanks to steady demand. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The average distillers dried grain (DDG) spot price from the 39 locations where DTN collected bids was $152 for the week ended March 8, up 1 cent on average versus a week ago.

Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended March 8 was at 110.33%, and the value of DDG relative to soybean meal was at 39.93%. The cost per unit of protein for DDG was $5.63, compared to the cost per unit of protein for soybean meal at $8.01.

The U.S. Grains Council (USGC) said in its weekly price update that transportation issues continue to impact the DDGS market and cause troubles getting product from ethanol plants to export ports. "Some traders are reporting DDGS barges should be loaded in the mid-Mississippi River this week, but there is still uncertainty as to when these barges will arrive at the Gulf. Barge CIF NOLA prices jumped higher three weeks ago and are holding those levels, rising another $1/metric ton (MT) this week to $217/MT. FOB NOLA DDGS prices are $6/MT higher this week at $228/MT, 127% of FOB NOLA corn values."

American Commercial Barge Line noted in their daily river update that high water in the Lower Mississippi River (LMR) to the Gulf has caused tow sizes to be reduced by two strings southbound (five to 10 barges). The river was closed for a fleet breakaway from mile marker 845-861, but was expected to be re-opened late in the evening on March 8. "Baton Rouge is not expected to crest until March 21 at 42.5'. New Orleans is not expected to crest until March 13 at 17'. Daylight only southbound through Memphis (LMR 725) and Helena (LMR 661) until the second half of March, Vicksburg (LMR 435) until the end of March, and Baton Rouge at least through the end of March."

Merchandisers are reporting Vietnamese buyers are actively looking for April-June shipments but, so far, are not willing to pay asking prices, added USGC. "Some sales to South Korea have occurred but with limited volumes. So far this week, CIF Southeast Asia prices are up $4/MT to $270 with prices for Japan and Shanghai, China leading the way (each up $10/MT)."

CURRENT CURRENT CHANGE
COMPANY STATE 3/8/2018 3/1/2018
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 $160 $155 $5
Indiana Dry $160 $160 $0
Iowa Dry $145 $145 $0
Michigan Dry $160 $160 $0
Minnesota Dry $145 $145 $0
North Dakota Dry $155 $155 $0
New York Dry $170 $165 $5
South Dakota Dry $145 $145 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $150 $150 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $165 $165 $0
Iowa Dry $142 $142 $0
Michigan Dry $170 $170 $0
Minnesota Dry $142 $142 $0
Missouri Dry $160 $160 $0
Ohio Dry $165 $165 $0
South Dakota Dry $145 $145 $0
` `
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $158 $150 $8
Wet $45 $50 -$5
Illinois Dry $165 $168 -$3
Nebraska Dry $158 $150 $8
Wet $45 $50 -$5
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $160 $155 $5
Indiana Dry $155 $155 $0
Iowa Dry $145 $140 $5
Michigan Dry $150 $150 $0
Minnesota Dry $145 $145 $0
Nebraska Dry $150 $145 $5
New York Dry $165 $165 $0
North Dakota Dry $155 $150 $5
Ohio Dry $155 $155 $0
South Dakota Dry $145 $145 $0
Wisconsin Dry $150 $145 $5
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $145 $145 $0
Iowa Dry $140 $140 $0
Minnesota Dry $145 $145 $0
Nebraska Dry $145 $145 $0
Ohio Dry $145 $145 $0
South Dakota Dry $140 $140 $0
California $215 $215 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $226 $216 $10
*Prices listed per ton.
Weekly Average $152 $151 $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 3/9/2018 $3.8300 $136.79
Soybean Meal 3/9/2018 $371.70
DDG Weekly Average Spot Price $152.00
DDG Value Relative to: 3/8 3/2
Corn 110.33% 111.63%
Soybean Meal 39.93% 38.32%
Cost Per Unit of Protein:
DDG $5.63 $5.59
Soybean Meal $8.01 $8.29
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/AG)

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