Market Matters Blog

DDG Prices Higher Again

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for domestic distillers dried grains was up $3 at $162 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The average distillers dried grains (DDG) spot price from the 39 locations where DTN collected bids was $162 for the week ended April 5, up $3 versus a week ago. The domestic and export markets remain firm. Prices in California rose as supplies are tight in that area. A merchandiser told me that demand in California has been very strong and some buyers have been running out before every train arrives at destination.

Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended April 5 was at 116.46%, and the value of DDG relative to soybean meal was at 42.23%. The cost per unit of protein for DDG was $6.00, compared to the cost per unit of protein for soybean meal at $8.08. The recent strength in the soybean meal market has kept DDG a good value on a per unit of protein cost.

The U.S. Grains Council (USGC) noted in its weekly price update that barge CIF NOLA values moved $15/metric ton (mt) higher and FOB NOLA prices rose $10/mt Prices for DDGS CIF Southeast Asia increased $7/mt to $240/mt. The average price increase for product destined for Southeast Asia for April and May shipments was $5/mt while prices for June shipments to these destinations increased $10/mt.

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The DDGS market, along with other commodities, received troubling news on April 2 when China placed "retaliatory" tariffs of a 25% increase on sorghum, corn, DDGS, beef and soybeans. In an April 5 news release, U.S. Grains Council President and CEO Tom Sleight said, "Despite the challenges we face at the moment, never has this been more true: Ninety-five percent of the world's consumers now live outside of the United States, increasing prosperity and population growth mean more demand for the products we are selling, and the United States remains the most innovative and robust agricultural producer in the world.

"Agricultural exports contribute positively to our trade balance year in and year out, and they support millions of manufacturing, transportation and retail jobs in the United States while offering more and better food to people in the more than 75 countries that buy our coarse grains and co-products each year," said Sleight.

Here is a link to the full USGC statement:

https://grains.org/…

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 4/5/2018 3/29/2018
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 $175 $165 $10
Indiana Dry $165 $165 $0
Iowa Dry $160 $155 $5
Michigan Dry $170 $168 $2
Minnesota Dry $160 $155 $5
North Dakota Dry $165 $160 $5
New York Dry $175 $175 $0
South Dakota Dry $160 $155 $5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $160 $160 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $165 $165 $0
Iowa Dry $150 $150 $0
Michigan Dry $165 $165 $0
Minnesota Dry $150 $150 $0
Missouri Dry $170 $170 $0
Ohio Dry $165 $165 $0
South Dakota Dry $150 $150 $0
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United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $163 $163 $0
Wet $55 $55 $0
Illinois Dry $172 $172 $0
Nebraska Dry $163 $163 $0
Wet $55 $55 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $170 $165 $5
Indiana Dry $170 $165 $5
Iowa Dry $155 $150 $5
Michigan Dry $165 $165 $0
Minnesota Dry $150 $150 $0
Nebraska Dry $160 $155 $5
New York Dry $175 $175 $0
North Dakota Dry $165 $165 $0
Ohio Dry $165 $165 $0
South Dakota Dry $150 $150 $0
Wisconsin Dry $155 $155 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $167 $167 $0
Iowa Dry $155 $148 $7
Minnesota Dry $155 $145 $10
Nebraska Dry $155 $150 $5
Ohio Dry $165 $165 $0
South Dakota Dry $165 $147 $18
California $225 $215 $10
Western Milling, Goshen, California (559-302-1074)
California Dry $234 $226 $8
*Prices listed per ton.
Weekly Average $162 $159 $3
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 4/5/2018 $3.8950 $139.11
Soybean Meal 4/5/2018 $383.60
DDG Weekly Average Spot Price $162.00
DDG Value Relative to: 4/5 3/29
116.46% 114.82%
Soybean Meal 42.23% 41.40%
Cost Per Unit of Protein:
DDG $6.00 $5.89
Soybean Meal $8.08 $8.08
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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