Market Matters Blog

DDG Prices Continue 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 $146 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- Distillers dried grains average spot prices from the 40 locations DTN contacted were $8 per ton higher, at $146 per ton for the week ended Nov. 29, versus two weeks ago. Prices have moved higher three weeks in a row, and merchandisers noted that slowdowns and plant closures has really tightened supplies.

Informa Economics noted that, one of the main reasons for the quick jump higher in DDG prices is struggling ethanol plant margins. "A 13-year low in ethanol prices is putting the squeeze on financial health and throttling production potential for the winter."

The EIA reported Wednesday that ethanol plant production increased modestly by 6,000 barrels per day (bpd) to 1,048 million bpd during the week ended Nov. 23, 1.7% lower than the corresponding week a year ago.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 29 was at 113.48%. The value of DDG relative to soybean meal was at 47.57%. The cost per unit of protein for DDG was $5.41, compared to the cost per unit of protein for soybean meal at $6.46. On a relative value, DDG prices are mostly in line with soymeal, but are slightly higher than normal basis corn values.

"Higher prices could start to create more pushback in rations down the line, but for now most traders are leaning bullish," noted Informa.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 11/29/2018 11/15/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $160 $153 $7
Modified $82 $80 $2
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $165 $150 $15
Wet $80 $75 $5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $150 $145 $5
Indiana Dry $145 $135 $10
Iowa Dry $145 $135 $10
Michigan Dry $140 $140 $0
Minnesota Dry $145 $130 $15
North Dakota Dry $155 $135 $20
New York Dry $155 $145 $10
South Dakota Dry $145 $130 $15
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $155 $145 $10
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $143 $138 $5
Iowa Dry $152 $148 $4
Michigan Dry $140 $137 $3
Minnesota Dry $147 $138 $9
Missouri Dry $167 $158 $9
Ohio Dry $142 $138 $4
South Dakota Dry $150 $140 $10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $144 $144 $0
Wet $55 $55 $0
Illinois Dry $150 $148 $2
Nebraska Dry $144 $144 $0
Wet $55 $55 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $135 $135 $0
Indiana Dry $145 $135 $10
Iowa Dry $145 $135 $10
Michigan Dry $140 $135 $5
Minnesota Dry $145 $130 $15
Nebraska Dry $160 $145 $15
New York Dry $150 $150 $0
North Dakota Dry $150 $140 $10
Ohio Dry $145 $135 $10
South Dakota Dry $145 $135 $10
Wisconsin Dry $136 $130 $6
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $139 $140 -$1
Iowa Dry $135 $130 $5
Minnesota Dry $145 $130 $15
Nebraska Dry $135 $125 $10
Ohio Dry $140 $140 $0
South Dakota Dry $140 $125 $15
California $212 $192 $20
Western Milling, Goshen, California (559-302-1074)
California Dry $223 $206 $17
*Prices listed per ton.
Weekly Average $146 $138 $8
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 11/29/2018 $3.6025 $128.66
Soybean Meal 11/29/2018 $306.90
DDG Weekly Average Spot Price $146.00
DDG Value Relative to: 11/29 11/16
Corn 113.48% 105.14%
Soybean Meal 47.57% 45.19%
Cost Per Unit of Protein:
DDG $5.41 $5.11
Soybean Meal $6.46 $6.43

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

(BAS/BE)

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