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 $4 lower on average at $122 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 this week at an average of $122 per ton for the week ended July 12, down $4 versus two weeks ago.

Merchandisers noted that DDG prices have come under pressure again from the move lower in soymeal values. Also, there is plenty of product to go around, and recent extreme hot temperatures added a little pressure as well to prices as animals don't eat as much when it is so hot. The cheaper corn price is the biggest culprit, because values have been shrinking thanks to the tension surrounding the trade war of the U.S versus China and other EU countries.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended July 12 was at 101.51%, and the value of DDG relative to soybean meal was at 36.59%. The cost per unit of protein for DDG was $4.52, compared to the cost per unit of protein for soybean meal at $7.02.

In its weekly DDGS price update, the U.S. Grains Council (USGC) noted, "DDGS prices for CIF NOLA (New Orleans, Louisiana), FOB Gulf, rail delivered PNW (Pacific Northwest), and rail delivered California steadied and showed slight increases this week. Internationally, container routes to Southeast Asia fell on average $5 per metric ton and merchandisers expect renewed buying interest soon."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 7/12/2018 6/28/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $130 $145 -$15
Modified $65 $75 -$10
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Dry $140 $140 $0
Wet $65 $65 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $145 $148 -$3
Indiana Dry $138 $135 $3
Iowa Dry $120 $115 $5
Michigan Dry $135 $145 -$10
Minnesota Dry $110 $110 $0
North Dakota Dry $110 $115 -$5
New York Dry $140 $145 -$5
South Dakota Dry $110 $115 -$5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $120 $125 -$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $140 $145 -$5
Iowa Dry $105 $115 -$10
Michigan Dry $140 $145 -$5
Minnesota Dry $105 $115 -$10
Missouri Dry $140 $145 -$5
Ohio Dry $140 $140 $0
South Dakota Dry $100 $115 -$15
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $118 $125 -$7
Wet $35 $35 $0
Illinois Dry $150 $150 $0
Nebraska Dry $118 $125 -$7
Wet $35 $35 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $135 $135 $0
Indiana Dry $130 $130 $0
Iowa Dry $115 $115 $0
Michigan Dry $125 $125 $0
Minnesota Dry $115 $115 $0
Nebraska Dry $110 $110 $0
New York Dry $135 $135 $0
North Dakota Dry $110 $110 $0
Ohio Dry $130 $130 $0
South Dakota Dry $110 $110 $0
Wisconsin Dry $130 $130 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $133 $130 $3
Iowa Dry $95 $105 -$10
Minnesota Dry $100 $105 -$5
Nebraska Dry $90 $105 -$15
Ohio Dry $140 $140 $0
South Dakota Dry $105 $110 -$5
California $184 $186 -$2
Western Milling, Goshen, California (559-302-1074)
California Dry $205 $210 -$5
*Prices listed per ton.
Weekly Average $122 $126 -$4
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 7/12/2018 $3.3650 $120.18
Soybean Meal 7/12/2018 $333.40
DDG Weekly Average Spot Price $122.00
DDG Value Relative to: 6/28 6/28
Corn 101.51% 102.26%
Soybean Meal 36.59% 38.02%
Cost Per Unit of Protein:
DDG $4.52 $4.67
Soybean Meal $7.02 $6.98
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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