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 unchanged at $172 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 $172 per ton for the week-ended May 24, unchanged versus two weeks ago.

Merchandisers noted that, overall, DDGS export prices were supported by good demand and increased buyer interest. On the domestic front, DDG prices were mixed with some lowering prices in spots, partially in sympathy with lower soybean meal prices.

There seems to be no supply issues at this point, according to merchandisers, and the Memorial Day long weekend will likely not make a difference. DDG prices seasonally flatten out once weather warms, along with pastures greening up which means feeders can lighten feed by-product usage in rations. USDA NASS noted Monday that pasture and range conditions in the 48 states average 5% very poor, 14% poor, 35% fair, 39% good and 7% very good; a slight increase in conditions from one week ago.

Kansas is only 23% good, 2% excellent and North Dakota conditions are only at 24% good, 2% excellent due to drought. These two states are showing the worst conditions at this time with Texas not far off at 25% good, and 5% excellent. If drought persists, that could spell trouble for livestock owners in those states.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week-ended May 24 was at 119.13%, and the value of DDG relative to soybean meal was at 45.39%. The cost per unit of protein for DDG was $6.37, compared to the cost per unit of protein for soybean meal at $7.94.

The U.S. Grains Council (USGC) noted in its weekly market price update, "On the export side, barge CIF NOLA DDGS values are higher while FOB NOLA values gained as well. Netbacks to merchandisers with river access have been higher than average in recent weeks, and the latest prices appear to be a reversion back to 'normal.' Prices for DDGS CIF Southeast Asia increased $5/metric ton as buyers expand their interest in covering forward needs. Prices for product destined for Indonesia gained $8/mt, while product for Japan and Taiwan increased $7/mt. Notably, there were not Asian destinations quoted where prices were lower than last week."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 5/24/2018 5/10/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $180 $180 $0
Modified $90 $90 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $180 $180 $0
Indiana Dry $175 $175 $0
Iowa Dry $175 $175 $0
Michigan Dry $175 $175 $0
Minnesota Dry $170 $170 $0
North Dakota Dry $170 $170 $0
New York Dry $175 $175 $0
South Dakota Dry $170 $170 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $160 $165 -$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $180 $175 $5
Iowa Dry $170 $165 $5
Michigan Dry $180 $180 $0
Minnesota Dry $170 $170 $0
Missouri Dry $185 $185 $0
Ohio Dry $180 $175 $5
South Dakota Dry $170 $165 $5
` `
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $162 $168 -$6
Wet $50 $55 -$5
Illinois Dry $181 $178 $3
Nebraska Dry $162 $168 -$6
Wet $50 $55 -$5
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $175 $175 $0
Indiana Dry $175 $175 $0
Iowa Dry $170 $165 $5
Michigan Dry $170 $170 $0
Minnesota Dry $170 $170 $0
Nebraska Dry $155 $165 -$10
New York Dry $180 $180 $0
North Dakota Dry $170 $170 $0
Ohio Dry $170 $170 $0
South Dakota Dry $165 $165 $0
Wisconsin Dry $170 $170 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $180 $178 $2
Iowa Dry $170 $170 $0
Minnesota Dry $170 $175 -$5
Nebraska Dry $170 $170 $0
Ohio Dry $180 $180 $0
South Dakota Dry $165 $165 $0
California $234 $238 -$4
Western Milling, Goshen, California (559-302-1074)
California Dry $243 $245 -$2
*Prices listed per ton.
Weekly Average $172 $172 $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 5/24/2018 $4.0425 $144.38
Soybean Meal 5/24/2018 $377.30
DDG Weekly Average Spot Price $172.00
DDG Value Relative to: 5/24 5/10
Corn 119.13% 121.01%
Soybean Meal 45.59% 44.05%
Cost Per Unit of Protein:
DDG $6.37 $6.37
Soybean Meal $7.94 $8.22
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.


(ES/BE)

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