Market Matters Blog

DDG Prices Steady

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's weekly spot price for domestic distillers dried grains was unchanged 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 the average price was steady at $133 per ton versus one week ago for the week ended Oct. 11.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Oct. 11 was at 101.85%. The value of DDG relative to soybean meal was at 42.52%. The cost per unit of protein for DDG was $4.93, compared to the cost per unit of protein for soybean meal at $6.59.

DDG exporters are currently having problems moving rail cars into Mexico because rail lines are congested, which could pressure DDG prices until traffic improves.

On Oct. 1, the BNSF said in a service advisory that, "Due to congestion at the FXE Eagle Pass and El Paso, Texas, interchanges, BNSF has issued a permit embargo for all grain, dried distillers grain (DDG), wheat, soybean, soybean meal, corn, and corn syrup shipments destined to the FXE at these junctions."

In their weekly distillers dried grains with solubles (DDGS) price update, U.S. Grains Council noted, "Merchandisers report that, following a brisk period of container buying, the market is relatively quiet as international buyers assess their near-term needs. This pause should allow the U.S. river system to clear out and more DDGS to move down to the Gulf for export. DDGS prices are mixed this week. Prices at the U.S. Gulf fell $1 per metric ton (mt) to $183/mt. On average, prices for 40-foot containers to Southeast Asia were up $4/mt for October delivery."

River conditions are not likely to improve anytime soon. As of Friday morning, the USACE had closed six locks between Lock 16 and Lock 24 on the Mississippi River, with the likelihood of two more closures by the weekend. The locks are not expected to reopen until sometime between Oct. 18 and Oct. 22. The high water has caused the closures after water started to flow over and through the lock structures, making it unsafe for tows to pass through.

https://www.dtnpf.com/…

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 10/11/2018 10/4/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $145 $145 $0
Modified $75 $75 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Dry $145 $145 $0
Wet $75 $75 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $145 $140 $5
Indiana Dry $132 $132 $0
Iowa Dry $130 $130 $0
Michigan Dry $140 $140 $0
Minnesota Dry $130 $130 $0
North Dakota Dry $130 $130 $0
New York Dry $155 $155 $0
South Dakota Dry $130 $130 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $142 $142 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $126 $128 -$2
Iowa Dry $127 $127 $0
Michigan Dry $134 $139 -$5
Minnesota Dry $130 $130 $0
Missouri Dry $137 $143 -$6
Ohio Dry $135 $135 $0
South Dakota Dry $128 $130 -$2
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $132 $135 -$3
Wet $55 $55 $0
Illinois Dry $145 $148 -$3
Nebraska Dry $132 $135 -$3
Wet $55 $55 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $130 $130 $0
Indiana Dry $130 $130 $0
Iowa Dry $125 $125 $0
Michigan Dry $135 $135 $0
Minnesota Dry $125 $125 $0
Nebraska Dry $135 $135 $0
New York Dry $140 $140 $0
North Dakota Dry $140 $140 $0
Ohio Dry $125 $125 $0
South Dakota Dry $125 $125 $0
Wisconsin Dry $130 $130 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $140 $140 $0
Iowa Dry $125 $130 -$5
Minnesota Dry $130 $135 -$5
Nebraska Dry $135 $135 $0
Ohio Dry $140 $140 $0
South Dakota Dry $125 $125 $0
California $187 $187 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $194 $195 -$1
*Prices listed per ton.
Weekly Average $133 $133 $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 10/11/2018 $3.6925 $131.88
Soybean Meal 10/11/2018 $312.80
DDG Weekly Average Spot Price $133.00
DDG Value Relative to: 10/11 10/4
Corn 101.85% 101.33%
Soybean Meal 42.52% 43.13%
Cost Per Unit of Protein:
DDG $4.93 $4.93
Soybean Meal $6.59 $6.49
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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