Market Matters Blog

DDG Prices Higher

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's weekly spot price for domestic distillers dried grains was stronger on average at $136 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- Distillers dried grains average spot prices from the 40 locations DTN contacted were $2 per ton higher, at $136 per ton for the week ended Nov. 8, versus one week ago. Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 8 was at 101.95%. The value of DDG relative to soybean meal was at 44.43%. The cost per unit of protein for DDG was $5.04, compared to the cost per unit of protein for soybean meal at $6.44.

In its weekly distillers dried grains with solubles (DDGS) price update, U.S. Grains Council noted, " The market continues to bump along with a lack of bullish or bearish news resulting in several weeks of generally steady prices. This week merchandisers reported sales to Indonesia and Vietnam for November and December delivery. September export numbers show continued strong demand from Southeast Asian markets -- especially Indonesia, Thailand and Vietnam.

"Indications for November delivery of 40-foot containers to Southeast Asia are down slightly this week from last (-1$/MT on average) while containers to Taiwan fell $5/MT. At the U.S. Gulf, indications for November delivery were up for the second straight week; U.S. rail rates were up as well. Prices for January delivery are expected to increase due to higher domestic demand during the winter months."

The U.S. Census Bureau reported last week that U.S. exports of DDGS totaled 1,028,254 metric tons in September, also down from August, but up 15% from a year ago. U.S. DDGS continue to find broad interest with Mexico, Vietnam, and South Korea listed as the top three destinations in September. The first nine months of U.S. DDGS exports were up 10% in 2018 from a year ago.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 11/8/2018 11/1/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $150 $145 $5
Modified $78 $75 $3
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $145 $145 $0
Wet $75 $75 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $145 $145 $0
Indiana Dry $134 $134 $0
Iowa Dry $130 $130 $0
Michigan Dry $135 $135 $0
Minnesota Dry $125 $125 $0
North Dakota Dry $130 $130 $0
New York Dry $145 $145 $0
South Dakota Dry $125 $125 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $143 $143 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $138 $132 $6
Iowa Dry $138 $132 $6
Michigan Dry $137 $132 $5
Minnesota Dry $135 $133 $2
Missouri Dry $155 $145 $10
Ohio Dry $138 $137 $1
South Dakota Dry $137 $131 $6
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $144 $144 $0
Wet $55 $55 $0
Illinois Dry $145 $145 $0
Nebraska Dry $144 $144 $0
Wet $55 $55 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $135 $130 $5
Indiana Dry $130 $130 $0
Iowa Dry $130 $125 $5
Michigan Dry $135 $135 $0
Minnesota Dry $130 $125 $5
Nebraska Dry $135 $135 $0
New York Dry $140 $140 $0
North Dakota Dry $140 $140 $0
Ohio Dry $130 $125 $5
South Dakota Dry $130 $125 $5
Wisconsin Dry $130 $130 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $140 $140 $0
Iowa Dry $130 $125 $5
Minnesota Dry $130 $130 $0
Nebraska Dry $125 $125 $0
Ohio Dry $140 $140 $0
South Dakota Dry $125 $125 $0
California $192 $187 $5
Western Milling, Goshen, California (559-302-1074)
California Dry $195 $195 $0
*Prices listed per ton.
Weekly Average $136 $134 $2
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 11/8/2018 $3.7350 $133.39
Soybean Meal 11/8/2018 $306.10
DDG Weekly Average Spot Price $136.00
DDG Value Relative to: 11/8 11/1
Corn 101.95% 102.30%
Soybean Meal 44.43% 42.78%
Cost Per Unit of Protein:
DDG $5.04 $4.96
Soybean Meal $6.44 $6.60
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/ES)

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