Market Matters Blog

DTN DDG Weekly Update

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 $154 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 $154 per ton for the week ended Dec. 6, versus one week ago. Prices have moved higher four weeks in a row, in part due to an increase in cold weather demand and tighter supplies that continue to pull DDG prices higher.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Dec. 6 was at 115.91%. The value of DDG relative to soybean meal was at 49.68%. The cost per unit of protein for DDG was $5.70, compared to the cost per unit of protein for soybean meal at $6.53. The DDG value to cash corn is currently above the two-year average and the cost per unit compared to soymeal moved higher this past week.

In their weekly price update, U.S. Grains Council said that, "This week, merchandisers reported sales to Indonesia and Vietnam as those markets continue to stand out as solid destinations for U.S. DDGS. DDGS at the U.S. Gulf are at $215 per metric ton (MT) for December delivery and increasing into deferred months. On average, 40-foot containers to southeast Asian destinations were up $6/MT this week from last week."

The U.S. Census Bureau said Thursday that U.S. exports of DDGS totaled 1,018,097 mt in October, a little less than September, but up 1% from a year ago. U.S. DDGS continue to find broad interest with Mexico, Vietnam, Indonesia and Thailand listed as the top four destinations in October. The first 10 months of 2018 showed exports of U.S. DDGS up 9% from a year ago.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 12/6/2018 11/29/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $175 $160 $15
Modified $88 $82 $6
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $175 $165 $10
Wet $85 $80 $5
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $160 $150 $10
Indiana Dry $155 $145 $10
Iowa Dry $155 $145 $10
Michigan Dry $150 $140 $10
Minnesota Dry $155 $145 $10
North Dakota Dry $165 $155 $10
New York Dry $165 $155 $10
South Dakota Dry $155 $145 $10
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $165 $155 $10
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $147 $143 $4
Iowa Dry $160 $152 $8
Michigan Dry $145 $140 $5
Minnesota Dry $157 $147 $10
Missouri Dry $170 $167 $3
Ohio Dry $145 $142 $3
South Dakota Dry $160 $150 $10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $144 $144 $0
Wet $55 $55 $0
Illinois Dry $155 $150 $5
Nebraska Dry $144 $144 $0
Wet $55 $55 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $155 $135 $20
Indiana Dry $150 $145 $5
Iowa Dry $155 $145 $10
Michigan Dry $150 $140 $10
Minnesota Dry $160 $145 $15
Nebraska Dry $170 $160 $10
New York Dry $160 $150 $10
North Dakota Dry $155 $150 $5
Ohio Dry $150 $145 $5
South Dakota Dry $160 $145 $15
Wisconsin Dry $142 $136 $6
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $145 $139 $6
Iowa Dry $140 $135 $5
Minnesota Dry $145 $145 $0
Nebraska Dry $135 $135 $0
Ohio Dry $145 $140 $5
South Dakota Dry $145 $140 $5
California $220 $212 $8
Western Milling, Goshen, California (559-302-1074)
California Dry $230 $223 $7
*Prices listed per ton.
Weekly Average $154 $146 $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 12/6/2018 $3.7200 $132.86
Soybean Meal 12/6/2018 $310.00
DDG Weekly Average Spot Price $154.00
DDG Value Relative to: 12/6 11/29
Corn 115.91% 113.48%
Soybean Meal 49.68% 47.57%
Cost Per Unit of Protein:
DDG $5.70 $5.41
Soybean Meal $6.53 $6.46
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/SK)

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