Market Matters Blog

DDG Prices Continue to Move 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 $7 lower on average at $126 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The average distillers dried grains (DDG) spot price from the 40 locations DTN contacted was lower again this week at an average of $126 per ton for the week ended June 28, down $7 versus one week ago.

Merchandisers noted the lower soymeal prices continue to pressure the DDG market, but even still, DDG has a per unit of protein cost advantage over soymeal. Also adding pressure to DDG prices is an increase in ethanol production, which is at its highest level since late December for the week ending June 22, according to the latest Energy Information Administration (EIA) report.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended June 28 was at 102.26%, and the value of DDG relative to soybean meal was at 38.02%. The cost per unit of protein for DDG was $4.67, compared to the cost per unit of protein for soybean meal at $6.98.

In its weekly DDGS price update, the U.S. Grains Council (USGC) noted, " A modest move higher in FOB U.S. Gulf corn values is helping stabilize FOB Gulf DDGS prices, with quotes for the latter mixed today but not far off last week's values. Internationally, merchandisers are reporting Asian buyers were waiting for clarity and a market floor early this week but have now "settled" with current prices. Prices for containerized shipments to Southeast Asia are steady with product destined for Bangladesh one of the few routes showing a decrease.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 6/28/2018 6/21/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $145 $150 -$5
Modified $75 $75 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Dry $140 $160 -$20
Wet $65 $70 -$5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $148 $150 -$2
Indiana Dry $135 $145 -$10
Iowa Dry $115 $130 -$15
Michigan Dry $145 $150 -$5
Minnesota Dry $110 $125 -$15
North Dakota Dry $115 $130 -$15
New York Dry $145 $155 -$10
South Dakota Dry $115 $130 -$15
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $125 $130 -$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $145 $150 -$5
Iowa Dry $115 $130 -$15
Michigan Dry $145 $160 -$15
Minnesota Dry $115 $130 -$15
Missouri Dry $145 $150 -$5
Ohio Dry $140 $150 -$10
South Dakota Dry $115 $130 -$15
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $125 $140 -$15
Wet $35 $40 -$5
Illinois Dry $150 $150 $0
Nebraska Dry $125 $140 -$15
Wet $35 $40 -$5
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $135 $135 $0
Indiana Dry $130 $135 -$5
Iowa Dry $115 $125 -$10
Michigan Dry $125 $135 -$10
Minnesota Dry $115 $125 -$10
Nebraska Dry $110 $110 $0
New York Dry $135 $135 $0
North Dakota Dry $110 $115 -$5
Ohio Dry $130 $140 -$10
South Dakota Dry $110 $115 -$5
Wisconsin Dry $130 $135 -$5
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $130 $130 $0
Iowa Dry $105 $112 -$7
Minnesota Dry $105 $110 -$5
Nebraska Dry $105 $100 $5
Ohio Dry $140 $140 $0
South Dakota Dry $110 $110 $0
California $186 $181 $5
Western Milling, Goshen, California (559-302-1074)
California Dry $210 $215 -$5
*Prices listed per ton.
Weekly Average $126 $133 -$7
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 6/28/2018 $3.4500 $123.21
Soybean Meal 6/28/2018 $331.40
DDG Weekly Average Spot Price $126.00
DDG Value Relative to: 6/28 6/21
Corn 102.26% 104.31%
Soybean Meal 38.02% 40.08%
Cost Per Unit of Protein:
DDG $4.67 $4.93
Soybean Meal $6.98 $6.99
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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