Market Matters Blog

DDG Prices Continue to Move Higher

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 $4 at $166 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 $166 per ton for the week ended April 12, up $4 per ton versus a week ago.

The domestic and export markets continue to strengthen due to tight supplies and strong demand. The EIA noted that ethanol plant production fell 4,000 barrels per day (bpd) on the week to 1.034 million bpd during the week ended April 6.

A merchandiser told me that the price strength may continue as supplies could get tighter with some plants heading in to spring maintenance.

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Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended April 12 was at 119.56%, and the value of DDG relative to soybean meal was at 43.29%. The cost per unit of protein for DDG was $6.15, compared to the cost per unit of protein for soybean meal at $8.07, keeping DDG competitively priced in feed rations.

The U.S. Grains Council (USGC) noted in its weekly market price update that, "On the export market, FOB NOLA DDGS are $10/metric ton (mt) higher and valued at 136% of FOB NOLA corn. The DDGS/corn ratio is at its highest point in at least two years as international DDGS demand remains robust. The difference between FOB NOLA-Barge CIF NOLA values widened again this week, increasing netback to merchandisers with river access, which should keep pulling product to the export market. Prices for DDGS CIF Southeast Asia rose $12/mt on average this week."

The shipping season on the Mississippi River is now 100% open after the Motor Vessel Michael Poindexter, pushing 12 barges, locked through Lock and Dam 2, near Hastings, Minnesota, on its way to St. Paul on Wednesday, April 11, after cutting though ice on Lake Pepin. The St. Paul District maintains a 9-foot navigation channel and operates 12 locks and dams to support navigation from Minneapolis, Minnesota to Guttenberg, Iowa.

According to the U.S. Army Corps of Engineers, this was the latest start to the shipping season in the Upper Mississippi River not related to flooding.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 4/12/2018 4/5/2018
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 $175 $0
Indiana Dry $170 $165 $5
Iowa Dry $170 $160 $10
Michigan Dry $175 $170 $5
Minnesota Dry $165 $160 $5
North Dakota Dry $170 $165 $5
New York Dry $175 $175 $0
South Dakota Dry $165 $160 $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 $170 $165 $5
Iowa Dry $155 $150 $5
Michigan Dry $170 $165 $5
Minnesota Dry $160 $150 $10
Missouri Dry $180 $170 $10
Ohio Dry $170 $165 $5
South Dakota Dry $155 $150 $5
` `
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 $175 $170 $5
Indiana Dry $175 $170 $5
Iowa Dry $160 $155 $5
Michigan Dry $170 $165 $5
Minnesota Dry $155 $150 $5
Nebraska Dry $165 $160 $5
New York Dry $180 $175 $5
North Dakota Dry $170 $165 $5
Ohio Dry $170 $165 $5
South Dakota Dry $155 $150 $5
Wisconsin Dry $160 $155 $5
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $170 $167 $3
Iowa Dry $155 $155 $0
Minnesota Dry $160 $155 $5
Nebraska Dry $170 $155 $15
Ohio Dry $170 $165 $5
South Dakota Dry $165 $165 $0
California $235 $225 $10
Western Milling, Goshen, California (559-302-1074)
California Dry $236 $234 $2
*Prices listed per ton.
Weekly Average $166 $162 $4
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

**

VALUE OF DDG VS. CORN & SOYBEAN MEAL
Settlement Price: Quote Date Bushel Short Ton
Corn 4/12/2018 $3.8875 $138.84
Soybean Meal 4/12/2018 $383.40
DDG Weekly Average Spot Price $166.00
DDG Value Relative to: 4/12 4/5
119.56% 116.46%
Soybean Meal 43.29% 42.23%
Cost Per Unit of Protein:
DDG $6.15 $6.00
Soybean Meal $8.07 $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

(BAS/AG)

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