Market Matters Blog
DDG Prices Lower
OMAHA (DTN) --Distillers dried grains (DDG) spot prices versus two weeks ago from the 40 locations DTN contacted were mixed, but on average posted a loss of $5 per ton at $134 per ton for the week-ended Aug. 30.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week-ended Aug. 30 was at 110.02%. The value of DDG relative to soybean meal was at 44.45%. The cost per unit of protein for DDG was $4.96, compared to the cost per unit of protein for soybean meal at $6.35.
Domestic demand has been fairly steady, as pasture conditions vary throughout the country. Monday's USDA Crop Progress report showed very poor conditions gained by 1 point to 12%; poor was at 18%; fair dropped 1 point to 30%, very good was at 34% and excellent was at 6%. Drought conditions have been hard on many pastures, especially in Texas, Missouri, Colorado, Arizona and California.
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In its weekly DDGS price update, the U.S. Grains Council (USGC) noted, "DDGS at the Gulf fell again this week to $203/metric ton (MT) (September delivery). Prices for 40-ft. containers to Southeast Asia were down $4/MT on average, while containers to South Korea and Taiwan fell $5/MT and $4/MT, respectively. U.S. rail rates were mostly unchanged. Asian buyers are active as prices become more attractive; merchandisers reported sales to Indonesia and Vietnam for September. Container availability is plentiful, depending on the carrier."
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
| COMPANY | STATE | 8/30/2018 | 8/16/2018 | ||
| 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 | $150 | $160 | -$10 | |
| Wet | $83 | $80 | $3 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $150 | $155 | -$5 | |
| Indiana | Dry | $140 | $145 | -$5 | |
| Iowa | Dry | $130 | $135 | -$5 | |
| Michigan | Dry | $130 | $135 | -$5 | |
| Minnesota | Dry | $125 | $125 | $0 | |
| North Dakota | Dry | $120 | $125 | -$5 | |
| New York | Dry | $130 | $140 | -$10 | |
| South Dakota | Dry | $120 | $125 | -$5 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $145 | $140 | $5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $140 | $147 | -$7 | |
| Iowa | Dry | $132 | $135 | -$3 | |
| Michigan | Dry | $138 | $142 | -$4 | |
| Minnesota | Dry | $130 | $130 | $0 | |
| Missouri | Dry | $149 | $153 | -$4 | |
| Ohio | Dry | $142 | $147 | -$5 | |
| South Dakota | Dry | $130 | $132 | -$2 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $135 | $121 | $14 | |
| Wet | $45 | $40 | $5 | ||
| Illinois | Dry | $150 | $158 | -$8 | |
| Nebraska | Dry | $135 | $121 | $14 | |
| Wet | $45 | $40 | $5 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $135 | $150 | -$15 | |
| Indiana | Dry | $130 | $145 | -$15 | |
| Iowa | Dry | $125 | $130 | -$5 | |
| Michigan | Dry | $135 | $145 | -$10 | |
| Minnesota | Dry | $120 | $125 | -$5 | |
| Nebraska | Dry | $135 | $150 | -$15 | |
| New York | Dry | $145 | $165 | -$20 | |
| North Dakota | Dry | $135 | $135 | $0 | |
| Ohio | Dry | $135 | $150 | -$15 | |
| South Dakota | Dry | $125 | $125 | $0 | |
| Wisconsin | Dry | $135 | $145 | -$10 | |
| Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
| Indiana | Dry | $130 | $140 | -$10 | |
| Iowa | Dry | $120 | $130 | -$10 | |
| Minnesota | Dry | $125 | $125 | $0 | |
| Nebraska | Dry | $140 | $130 | $10 | |
| Ohio | Dry | $140 | $145 | -$5 | |
| South Dakota | Dry | $125 | $125 | $0 | |
| California | $190 | $202 | -$12 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $204 | $210 | -$6 | |
| *Prices listed per ton. | |||||
| Weekly Average | $134 | $139 | -$5 | ||
| 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 | 8/30/2018 | $3.4100 | $121.79 |
| Soybean Meal | 8/30/2018 | $301.40 | |
| DDG Weekly Average Spot Price | $134.00 | ||
| DDG Value Relative to: | 8/30 | 8/16 | |
| Corn | 110.02% | 106.55% | |
| Soybean Meal | 44.45% | 41.54% | |
| Cost Per Unit of Protein: | |||
| DDG | $4.96 | $5.15 | |
| Soybean Meal | $6.35 | $7.04 | |
| 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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