Market Matters Blog
DDG Prices Lower
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.
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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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