Market Matters Blog
DDG Prices Mixed
OMAHA (DTN) -- The distillers dried grains (DDG) spot prices from the 40 locations DTN contacted were mixed, but on average posted a gain of $1 per ton at $139 per ton for the week-ended Aug. 16.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week-ended Aug. 16 was at 106.55%. The value of DDG relative to soybean meal was at 41.54%. The cost per unit of protein for DDG was $5.15, compared to the cost per unit of protein for soybean meal at $7.04.
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In its weekly DDGS price update, the U.S. Grains Council (USGC) noted, "DDGS at the Gulf fell this week as markets softened somewhat in response to the recent WASDE report. This dynamic has Asian buyers, among others, showing renewed interest. DDGS FOB Gulf are at $208 for September shipment. Container rates to Southeast Asia are down on average $7 per metric ton (mt) from last week, while container rates to Bangladesh and Myanmar are mostly unchanged. Container rates to Japan are down $4/mt from last week and stand at $247/mt for September shipment. Merchandisers reported sales to Indonesia and Vietnam."
Another reason for the weakness in the Gulf prices is due to the currency collapse in Turkey along with the deteriorating relationship between the U.S. and Turkey. Remember that Turkey is the second biggest U.S. DDGS buyer and unless their financial situation and the tension with the U.S. changes, a delay or possibly even a stoppage for U.S. DDGS export business there could result.
ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
COMPANY | STATE | 8/16/2018 | 8/9/2018 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $160 | $160 | $0 | |
Modified | $80 | $80 | $0 | ||
Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
Missouri | Dry | $160 | $160 | $0 | |
Wet | $80 | $80 | $0 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $155 | $156 | -$1 | |
Indiana | Dry | $145 | $148 | -$3 | |
Iowa | Dry | $135 | $138 | -$3 | |
Michigan | Dry | $135 | $144 | -$9 | |
Minnesota | Dry | $125 | $125 | $0 | |
North Dakota | Dry | $125 | $125 | $0 | |
New York | Dry | $140 | $142 | -$2 | |
South Dakota | Dry | $125 | $125 | $0 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $140 | $140 | $0 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $147 | $147 | $0 | |
Iowa | Dry | $135 | $127 | $8 | |
Michigan | Dry | $142 | $142 | $0 | |
Minnesota | Dry | $130 | $127 | $3 | |
Missouri | Dry | $153 | $152 | $1 | |
Ohio | Dry | $147 | $147 | $0 | |
South Dakota | Dry | $132 | $117 | $15 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $121 | $121 | $0 | |
Wet | $40 | $40 | $0 | ||
Illinois | Dry | $158 | $158 | $0 | |
Nebraska | Dry | $121 | $121 | $0 | |
Wet | $40 | $40 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $150 | $150 | $0 | |
Indiana | Dry | $145 | $145 | $0 | |
Iowa | Dry | $130 | $130 | $0 | |
Michigan | Dry | $145 | $145 | $0 | |
Minnesota | Dry | $125 | $125 | $0 | |
Nebraska | Dry | $150 | $150 | $0 | |
New York | Dry | $165 | $165 | $0 | |
North Dakota | Dry | $135 | $135 | $0 | |
Ohio | Dry | $150 | $150 | $0 | |
South Dakota | Dry | $125 | $125 | $0 | |
Wisconsin | Dry | $145 | $145 | $0 | |
Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
Indiana | Dry | $140 | $145 | -$5 | |
Iowa | Dry | $130 | $128 | $2 | |
Minnesota | Dry | $125 | $120 | $5 | |
Nebraska | Dry | $130 | $130 | $0 | |
Ohio | Dry | $145 | $150 | -$5 | |
South Dakota | Dry | $125 | $120 | $5 | |
California | $202 | $210 | -$8 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $210 | $213 | -$3 | |
*Prices listed per ton. | |||||
Weekly Average | $139 | $138 | $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 | 8/16/2018 | $3.6525 | $130.45 |
Soybean Meal | 8/16/2018 | $334.60 | |
DDG Weekly Average Spot Price | $139.00 | ||
DDG Value Relative to: | 8/16 | 8/9 | |
Corn | 106.55% | 104.64% | |
Soybean Meal | 41.54% | 41.31% | |
Cost Per Unit of Protein: | |||
DDG | $5.15 | $5.11 | |
Soybean Meal | $7.04 | $7.03 | |
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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