Market Matters Blog
DDG Prices Unchanged on Average
OMAHA (DTN) -- Distillers dried grains (DDG) spot prices from the 40 locations DTN contacted were mixed, but on average remained steady versus one week ago at $134 per ton for the week-ended Sept. 6.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week-ended Sept. 6 was at 106.14%. The value of DDG relative to soybean meal was at 43.09%. The cost per unit of protein for DDG was $4.96, compared to the cost per unit of protein for soybean meal at $6.55.
Domestic demand was slowed by the long weekend and a slight improvement in pasture conditions across the country for the week ending Sept. 2. Tuesday's USDA Crop Progress report showed very poor conditions were 2 points better at 10%; poor was unchanged at 18%; fair was unchanged at 30%, good rose 2 points to 36% and excellent was unchanged at 6%. In addition, there is plenty of DDG supply available as ethanol plant production continues to move higher. This latest report from the Energy Information Agency showed plant production rose to 1.087 million barrels per day (bpd) during the week-ended Aug. 31, a four-week high and 2.5% higher than the same week in 2018.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
In its weekly DDGS price update, the U.S. Grains Council noted, "DDGS prices were mostly down from last week, though adjustments were minor as the market moved sideways. DDGS at the Gulf fell $1/metric ton (mt) to $202/MT (September delivery). Prices for 40-ft. containers to Southeast Asia were down $2/mt on average; containers to Japan fell $6/mt. U.S. rail rates were down $2/mt from last week. Merchandisers reported sales to Vietnam and Indonesia in an otherwise quiet week."
The U.S. Census Bureau said Wednesday that U.S. exports of DDGS totaled 1,107,891 mt in July, up 11% from a year ago. Turkey was the top destination in July, accounting for 17% of U.S. exports, while Mexico was a close second. The first seven months of U.S. DDGS exports were up 4% in 2018 from a year ago.
ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
COMPANY | STATE | 9/6/2018 | 8/30/2018 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $155 | $160 | -$5 | |
Modified | $78 | $80 | -$2 | ||
Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
Missouri | Dry | $150 | $150 | $0 | |
Wet | $83 | $83 | $0 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $145 | $150 | -$5 | |
Indiana | Dry | $140 | $140 | $0 | |
Iowa | Dry | $135 | $130 | $5 | |
Michigan | Dry | $140 | $130 | $10 | |
Minnesota | Dry | $125 | $125 | $0 | |
North Dakota | Dry | $125 | $120 | $5 | |
New York | Dry | $160 | $130 | $30 | |
South Dakota | Dry | $125 | $120 | $5 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $145 | $145 | $0 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $134 | $140 | -$6 | |
Iowa | Dry | $135 | $132 | $3 | |
Michigan | Dry | $138 | $138 | $0 | |
Minnesota | Dry | $130 | $130 | $0 | |
Missouri | Dry | $151 | $149 | $2 | |
Ohio | Dry | $142 | $142 | $0 | |
South Dakota | Dry | $135 | $130 | $5 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $135 | $135 | $0 | |
Wet | $45 | $45 | $0 | ||
Illinois | Dry | $150 | $150 | $0 | |
Nebraska | Dry | $135 | $135 | $0 | |
Wet | $45 | $45 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $130 | $135 | -$5 | |
Indiana | Dry | $127 | $130 | -$3 | |
Iowa | Dry | $125 | $125 | $0 | |
Michigan | Dry | $130 | $135 | -$5 | |
Minnesota | Dry | $120 | $120 | $0 | |
Nebraska | Dry | $135 | $135 | $0 | |
New York | Dry | $140 | $145 | -$5 | |
North Dakota | Dry | $130 | $135 | -$5 | |
Ohio | Dry | $130 | $135 | -$5 | |
South Dakota | Dry | $120 | $125 | -$5 | |
Wisconsin | Dry | $130 | $135 | -$5 | |
Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
Indiana | Dry | $130 | $130 | $0 | |
Iowa | Dry | $120 | $120 | $0 | |
Minnesota | Dry | $125 | $125 | $0 | |
Nebraska | Dry | $140 | $140 | $0 | |
Ohio | Dry | $140 | $140 | $0 | |
South Dakota | Dry | $125 | $125 | $0 | |
California | $190 | $190 | $0 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $205 | $204 | $1 | |
*Prices listed per ton. | |||||
Weekly Average | $134 | $134 | $0 | ||
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 | 9/6/2018 | $3.5350 | $126.25 |
Soybean Meal | 9/6/2018 | $311.00 | |
DDG Weekly Average Spot Price | $134.00 | ||
DDG Value Relative to: | 9/6 | 8/30 | |
Corn | 106.14% | 110.02% | |
Soybean Meal | 43.09% | 44.45% | |
Cost Per Unit of Protein: | |||
DDG | $4.96 | $4.96 | |
Soybean Meal | $6.55 | $6.35 | |
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/AG)
© Copyright 2018 DTN/The Progressive Farmer. All rights reserved.
Comments
To comment, please Log In or Join our Community .