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 $5 lower on average at $134 per ton. (DTN file photo by Elaine Shein)

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.

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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