Market Matters Blog

DDG Prices Mixed

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's average weekly spot price for domestic distillers dried grains was $1 higher on average at $139 per ton. (DTN file photo by Elaine Shein)

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.

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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