Market Matters Blog
DDG Prices Slightly Higher
OMAHA (DTN) -- The average distillers dried grains (DDG) spot price from the 39 locations DTN contacted was $167 per ton for the week ended April 19, up $1 per ton versus a week ago. A few merchandisers did say the market does feel like it wants to move lower heading in to May. That will all depend on supply availability and feeder demand as we head to warmer temperatures.
The Energy Information Administration (EIA) reported that ethanol plant production continued lower, dropping 25,000 barrels per day (bpd) to 1.009 million bpd during the week ended April 13. DDG bids were higher in the plants where supplies have been tightened by either spring maintenance or slower production.
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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 19 was at 122.40%, and the value of DDG relative to soybean meal was at 44.73%. The cost per unit of protein for DDG was $6.19, compared to the cost per unit of protein for soybean meal at $7.86. Even with soymeal prices weaker this week, DDG still remains the best value per unit of protein.
The U.S. Grains Council (USGC) noted in its weekly market price update that, "Barge CIF NOLA prices fell this week while FOB NOLA prices decreased as well. Logistics issues across the Midwest sent rail-delivered PNW prices $3/metric tons (MT) higher and FOB Lethbridge, Alberta values $12/MT higher. Prices for product CIF Southeast Asia were steady/higher, rising $2/MT on average. Prices for shipments to Taiwan led the way with $4/MT gains, while product for the Philippines and Malaysia rose $3/MT."
ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
COMPANY | STATE | 4/19/2018 | 4/12/2018 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $175 | $170 | $5 | |
Modified | $90 | $85 | $5 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $175 | $175 | $0 | |
Indiana | Dry | $170 | $170 | $0 | |
Iowa | Dry | $170 | $170 | $0 | |
Michigan | Dry | $180 | $175 | $5 | |
Minnesota | Dry | $165 | $165 | $0 | |
North Dakota | Dry | $170 | $170 | $0 | |
New York | Dry | $175 | $175 | $0 | |
South Dakota | Dry | $165 | $165 | $0 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $163 | $160 | $3 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $170 | $170 | $0 | |
Iowa | Dry | $160 | $155 | $5 | |
Michigan | Dry | $170 | $170 | $0 | |
Minnesota | Dry | $165 | $160 | $5 | |
Missouri | Dry | $180 | $180 | $0 | |
Ohio | Dry | $170 | $170 | $0 | |
South Dakota | Dry | $155 | $155 | $0 | |
` | ` | ||||
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $168 | $163 | $5 | |
Wet | $55 | $55 | $0 | ||
Illinois | Dry | $175 | $172 | $3 | |
Nebraska | Dry | $168 | $163 | $5 | |
Wet | $55 | $55 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $175 | $175 | $0 | |
Indiana | Dry | $175 | $175 | $0 | |
Iowa | Dry | $160 | $160 | $0 | |
Michigan | Dry | $170 | $170 | $0 | |
Minnesota | Dry | $155 | $155 | $0 | |
Nebraska | Dry | $165 | $165 | $0 | |
New York | Dry | $180 | $180 | $0 | |
North Dakota | Dry | $170 | $170 | $0 | |
Ohio | Dry | $170 | $170 | $0 | |
South Dakota | Dry | $155 | $155 | $0 | |
Wisconsin | Dry | $160 | $160 | $0 | |
Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
Indiana | Dry | $170 | $170 | $0 | |
Iowa | Dry | $155 | $155 | $0 | |
Minnesota | Dry | $160 | $160 | $0 | |
Nebraska | Dry | $170 | $170 | $0 | |
Ohio | Dry | $170 | $170 | $0 | |
South Dakota | Dry | $165 | $165 | $0 | |
California | $235 | $235 | $0 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $238 | $236 | $2 | |
*Prices listed per ton. | |||||
Weekly Average | $167 | $166 | $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 | 4/19/2018 | $3.8200 | $136.43 |
Soybean Meal | 4/19/2018 | $373.30 | |
DDG Weekly Average Spot Price | $167.00 | ||
DDG Value Relative to: | 4/19 | 4/12 | |
122.40% | 119.56% | ||
Soybean Meal | 44.73% | 43.29% | |
Cost Per Unit of Protein: | |||
DDG | $6.19 | $6.15 | |
Soybean Meal | $7.86 | $8.07 | |
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/CZ)
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