Market Matters Blog

DDG Prices Slightly Higher

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's weekly spot price for domestic distillers dried grains was higher on average at $133 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- Distillers dried grains spot prices from the 40 locations DTN contacted were mixed, but on average, were $1 per ton higher versus one week ago at $133 per ton for the week ended Sept. 20.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Sept. 20 was at 105.64%. The value of DDG relative to soybean meal was at 42.71%. The cost per unit of protein for DDG was $4.93, compared to the cost per unit of protein for soybean meal at $6.56.

DDG prices were under pressure earlier this week as corn prices continued last week's trend lower, but Thursday's near-7-cent recovery in the futures did take some of the pressure off DDG prices in some areas. DDG supplies remain plentiful as ethanol plant production increased last week. The EIA on Wednesday showed a higher-than-expected plant production increase last week, while market discussions pointed to thinning margins that have prompted some plants to consider reducing plant run rates.

In its weekly distillers dried grains with solubles (DDGS) price update, the U.S. Grains Council noted, "DDGS export prices were generally down across the board. A continued pickup in interest from international buyers is being reported as prices are nearing the market's bottom. On average, prices for 40-foot containers to Southeast Asia fell $4/metric tons (MT) for October; FOB Gulf indications and U.S. rail rates were down as well."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 9/20/2018 9/13/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $140 $145 -$5
Modified $73 $75 -$2
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Dry $130 $140 -$10
Wet $70 $75 -$5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $140 $142 -$2
Indiana Dry $132 $135 -$3
Iowa Dry $130 $135 -$5
Michigan Dry $140 $142 -$2
Minnesota Dry $130 $130 $0
North Dakota Dry $130 $125 $5
New York Dry $155 $162 -$7
South Dakota Dry $130 $125 $5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $140 $140 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $135 $136 -$1
Iowa Dry $130 $135 -$5
Michigan Dry $142 $142 $0
Minnesota Dry $130 $132 -$2
Missouri Dry $150 $151 -$1
Ohio Dry $140 $144 -$4
South Dakota Dry $130 $135 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $130 $130 $0
Wet $40 $40 $0
Illinois Dry $147 $147 $0
Nebraska Dry $130 $130 $0
Wet $40 $40 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $130 $130 $0
Indiana Dry $127 $127 $0
Iowa Dry $125 $125 $0
Michigan Dry $130 $130 $0
Minnesota Dry $120 $120 $0
Nebraska Dry $135 $135 $0
New York Dry $140 $140 $0
North Dakota Dry $145 $130 $15
Ohio Dry $130 $130 $0
South Dakota Dry $130 $120 $10
Wisconsin Dry $130 $130 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $135 $125 $10
Iowa Dry $125 $115 $10
Minnesota Dry $120 $120 $0
Nebraska Dry $130 $135 -$5
Ohio Dry $140 $135 $5
South Dakota Dry $125 $120 $5
California $185 $185 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $192 $200 -$8
*Prices listed per ton.
Weekly Average $133 $132 $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 9/20/2018 $3.5250 $125.89
Soybean Meal 9/20/2018 $311.40
DDG Weekly Average Spot Price $133.00
DDG Value Relative to: 9/20 9/13
Corn 105.64% 109.91%
Soybean Meal 42.71% 42.40%
Cost Per Unit of Protein:
DDG $4.93 $4.89
Soybean Meal $6.56 $6.55
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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