Market Matters Blog

DDG Prices Lower

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for domestic distillers dried grains was $1 weaker at $171 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 $171 per ton for the week-ended May 31, $1 weaker versus one week ago.

Merchandisers noted that DDG trading has been quiet since the Memorial Day holiday weekend, and many have already sold product through June. CIF New Orleans, Louisiana, (NOLA) DDGS values have been flat to weaker, and overall, prices have been under pressure from lower soymeal and corn markets.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week-ended May 31 was at 121.52%, and the value of DDG relative to soybean meal was at 45.56%. The cost per unit of protein for DDG was $6.33, compared to the cost per unit of protein for soybean meal at $7.90. On a protein basis, DDG prices are still a good value compared to other byproducts.

Spot offers have become aggressive due to slow railcar logistics that are causing some plants to run short on storage room, noted the U.S. Grains Council (USGC). In their weekly price update, USGC reported that, "Barge CIF NOLA DDGS prices are $10/metric ton (mt) lower for June shipments because of the logistics constraints. On the export markets, FOB NOLA prices fell $1/mt while CNF Southeast Asia prices were mostly steady. June shipments to Asia (CNF prices) rose $1/mt while July/August shipment values were steady."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 5/31/2018 5/24/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $175 $180 -$5
Modified $88 $90 -$2
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $180 $184 -$4
Indiana Dry $174 $175 -$1
Iowa Dry $170 $170 $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 $165 $165 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $160 $160 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $180 $180 $0
Iowa Dry $170 $170 $0
Michigan Dry $180 $180 $0
Minnesota Dry $170 $170 $0
Missouri Dry $185 $185 $0
Ohio Dry $180 $180 $0
South Dakota Dry $170 $170 $0
` `
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $162 $162 $0
Wet $50 $50 $0
Illinois Dry $181 $181 $0
Nebraska Dry $162 $162 $0
Wet $50 $50 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $175 $175 $0
Indiana Dry $175 $175 $0
Iowa Dry $160 $170 -$10
Michigan Dry $170 $170 $0
Minnesota Dry $165 $170 -$5
Nebraska Dry $150 $155 -$5
New York Dry $180 $180 $0
North Dakota Dry $165 $170 -$5
Ohio Dry $170 $170 $0
South Dakota Dry $160 $165 -$5
Wisconsin Dry $170 $170 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $180 $180 $0
Iowa Dry $170 $170 $0
Minnesota Dry $170 $170 $0
Nebraska Dry $170 $170 $0
Ohio Dry $180 $180 $0
South Dakota Dry $165 $165 $0
California $234 $234 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $238 $243 -$5
*Prices listed per ton.
Weekly Average $171 $172 $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 5/31/2018 $3.9400 $140.71
Soybean Meal 5/31/2018 $375.30
DDG Weekly Average Spot Price $171.00
DDG Value Relative to: 5/31 5/24
Corn 121.52% 119.13%
Soybean Meal 45.56% 45.59%
Cost Per Unit of Protein:
DDG $6.33 $6.37
Soybean Meal $7.90 $7.94
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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