Market Matters Blog

DDG Prices Steady

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for domestic distillers dried grains was steady at $167 per ton. (DTN file photo by Elaine Shein)

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 26, unchanged versus a week ago. Prices were mixed, but a merchandiser said that, overall, prices were supported by plant maintenance slowdowns.

The Energy Information Administration (EIA) reported that U.S. ethanol production was estimated at 985,000 barrels per day (bpd) for the week ending April 20. Production tapered off seasonally because of plant downtime for maintenance.

Based on the average of bids collected by DTN, the value of DDG relative to corn for the week-ended April 26 was at 121.14%, and the value of DDG relative to soybean meal was at 44.04%. The cost per unit of protein for DDG was $6.19, compared to the cost per unit of protein for soybean meal at $7.98. Soymeal prices rose this past week, keeping DDG prices the better value of the two protein feeds.

The U.S. Grains Council (USGC) noted in its weekly market price update that, "Barge CIF NOLA DDGS values fell $4/metric ton (MT) for nearby shipment and $2 to $3/mt for June/July. Easing transportation constraints helped lower prices in this market, as well as in the rail-delivered PNW market. FOB Gulf values are $6/mt higher for May shipment and $4 higher for June/July.

"Internationally, merchandisers are reporting some foreign buyers are becoming frustrated with DDGS prices remaining high for so long, buoyed by firm soybean meal markets. This has led to some weakness in CIF Southeast Asia prices, which fell $2/mt this week. Prices for most Asian destinations are lower, but product for Myanmar and Bangladesh is steady/higher."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 4/26/2018 4/19/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $170 $175 -$5
Modified $85 $90 -$5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $175 $175 $0
Indiana Dry $170 $170 $0
Iowa Dry $170 $170 $0
Michigan Dry $170 $180 -$10
Minnesota Dry $160 $165 -$5
North Dakota Dry $165 $170 -$5
New York Dry $170 $175 -$5
South Dakota Dry $160 $165 -$5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $163 $163 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $170 $170 $0
Iowa Dry $160 $160 $0
Michigan Dry $175 $170 $5
Minnesota Dry $165 $165 $0
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 $168 $0
Wet $55 $55 $0
Illinois Dry $175 $175 $0
Nebraska Dry $168 $168 $0
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 $160 $155 $5
Nebraska Dry $170 $165 $5
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 $234 $238 -$4
*Prices listed per ton.
Weekly Average $167 $167 $0
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 4/26/2018 $3.8600 $137.86
Soybean Meal 4/26/2018 $379.20
DDG Weekly Average Spot Price $167.00
DDG Value Relative to: 4/26 4/19
121.14% 122.40%
Soybean Meal 44.04% 44.73%
Cost Per Unit of Protein:
DDG $6.19 $6.19
Soybean Meal $7.98 $7.86
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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