Market Matters Blog

DDG Prices Firm

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
Connect with Mary:
DTN's average weekly spot price for dried distillers grains was 1 cent higher at $153 per ton, as strong demand continues to keep prices unseasonably high. (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 $153 for the week ended March 15, 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 15 was at 110.77%, and the value of DDG relative to soybean meal was at 41.24%. The cost per unit of protein for DDG was $5.67, compared to the cost per unit of protein for soybean meal at $7.81. Prices have remained firm even while soymeal has moved lower. DDG still has a per-protein unit cost advantage to soymeal.

The U.S. Grains Council (USGC) said in its weekly price update that exporters asking prices for DDGS are higher this week, which has foreign buyers mostly "kicking the tires," according to U.S. merchandisers.

"Some sales to Southeast Asia has been completed, but only with modest volume," noted USGC. "Traded prices (CIF Southeast Asia) for April shipments are steady this week, averaging $232 per metric ton (mt), while prices for May/June are $2/mt higher. Prices for product destined for Myanmar and Bangladesh had the highest increase this week, rising $4 and $6/mt, respectively, for May shipment."

Barge CIF New Orleans, Louisiana, (NOLA) and FOB NOLA DDGS values are higher this week as the recent logistics issues clear. Both prices are $4/mt higher while rail-delivered Pacific Northwest prices fell an equal amount. A merchandiser told DTN that barge loadings are picking up as the lower Upper Mississippi River (UMR) has opened for the 2018 shipping season. Barges are still unable to move to the upper portion of the UMR, as Lake Pepin still has too deep of ice in the middle of the lake. Once it melts, barges can then make their way up to the Twin Cities shipping district.

CURRENT CURRENT CHANGE
COMPANY STATE 3/15/2018 3/8/2018
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 $160 $0
Indiana Dry $160 $160 $0
Iowa Dry $150 $145 $5
Michigan Dry $160 $160 $0
Minnesota Dry $150 $145 $5
North Dakota Dry $155 $155 $0
New York Dry $170 $170 $0
South Dakota Dry $150 $145 $5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $155 $150 $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $165 $165 $0
Iowa Dry $145 $142 $3
Michigan Dry $165 $170 -$5
Minnesota Dry $145 $142 $3
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 $160 $158 $2
Wet $50 $45 $5
Illinois Dry $170 $165 $5
Nebraska Dry $160 $158 $2
Wet $50 $45 $5
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $160 $160 $0
Indiana Dry $155 $155 $0
Iowa Dry $145 $145 $0
Michigan Dry $150 $150 $0
Minnesota Dry $145 $145 $0
Nebraska Dry $150 $150 $0
New York Dry $165 $165 $0
North Dakota Dry $155 $155 $0
Ohio Dry $155 $155 $0
South Dakota Dry $145 $145 $0
Wisconsin Dry $150 $150 $0
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 $228 $226 $2
*Prices listed per ton.
Weekly Average $153 $152 $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 3/15/2018 $3.8675 $138.13
Soybean Meal 3/15/2018 $371.00
DDG Weekly Average Spot Price $153.00
DDG Value Relative to: 3/15 3/8
Corn 110.77% 110.33%
Soybean Meal 41.24% 39.93%
Cost Per Unit of Protein:
DDG $5.67 $5.63
Soybean Meal $7.81 $8.01
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)

Comments

To comment, please Log In or Join our Community .