Market Matters Blog

DDG Prices Continue Downward Slide

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for domestic distillers dried grains was $11 lower at $149 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 sharply lower again this week at an average of $149 per ton for the week-ended June 14, down $11 versus one week ago.

Merchandisers noted that the sharp decline seen again this week can be blamed on the recent large losses in corn and soymeal prices. Also, there is no shortage of product, as the most recent EIA report showed that ethanol plant production was estimated at 1.053 million barrels per day for the week-ending June 8, slightly higher than the prior week.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week-ended June 14 was at 114.93%, and the value of DDG relative to soybean meal was at 43.41%. The cost per unit of protein for DDG was $5.52, compared to the cost per unit of protein for soybean meal at $7.23. Even with the drop in DDG prices, DDG remains a better value in rations than soymeal on a per-protein unit cost.

In its weekly price update, the U.S. Grains Council (USGC) reported: "Internationally, FOB U.S. Gulf DDGS values slipped this week while containers CIF Southeast Asia fell $8 per metric ton on average.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 6/14/2018 6/7/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $155 $170 -$15
Modified $80 $85 -$5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $162 $172 -$10
Indiana Dry $158 $165 -$7
Iowa Dry $145 $160 -$15
Michigan Dry $163 $165 -$2
Minnesota Dry $140 $155 -$15
North Dakota Dry $140 $155 -$15
New York Dry $170 $170 $0
South Dakota Dry $145 $160 -$15
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $150 $158 -$8
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $155 $175 -$20
Iowa Dry $150 $165 -$15
Michigan Dry $170 $175 -$5
Minnesota Dry $145 $160 -$15
Missouri Dry $165 $175 -$10
Ohio Dry $160 $175 -$15
South Dakota Dry $145 $160 -$15
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $150 $158 -$8
Wet $40 $40 $0
Illinois Dry $160 $172 -$12
Nebraska Dry $150 $158 -$8
Wet $40 $40 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $155 $165 -$10
Indiana Dry $150 $160 -$10
Iowa Dry $140 $145 -$5
Michigan Dry $150 $155 -$5
Minnesota Dry $140 $140 $0
Nebraska Dry $125 $140 -$15
New York Dry $150 $165 -$15
North Dakota Dry $140 $145 -$5
Ohio Dry $155 $160 -$5
South Dakota Dry $140 $145 -$5
Wisconsin Dry $145 $145 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $150 $165 -$15
Iowa Dry $135 $160 -$25
Minnesota Dry $140 $160 -$20
Nebraska Dry $125 $140 -$15
Ohio Dry $155 $165 -$10
South Dakota Dry $145 $165 -$20
California $195 $220 -$25
Western Milling, Goshen, California (559-302-1074)
California Dry $220 $230 -$10
*Prices listed per ton.
Weekly Average $149 $160 -$11
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 6/14/2018 $3.6300 $129.64
Soybean Meal 6/14/2018 $343.20
DDG Weekly Average Spot Price $149.00
DDG Value Relative to: 6/14 6/7
Corn 114.93% 119.07%
Soybean Meal 43.41% 44.64%
Cost Per Unit of Protein:
DDG $5.52 $5.93
Soybean Meal $7.23 $7.55
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

(AG)

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