Market Matters Blog
DDG Prices Move Higher
OMAHA (DTN) -- Distillers dried grains average spot prices from the 40 locations DTN contacted were $8 per ton higher, at $161 per ton for the week ended Dec. 13, versus one week ago.
DTN weekly DDG average prices have moved up $23 per ton the last three weeks, in part due to tight supplies. The EIA reported Wednesday, Dec. 12, that ethanol production was at 1.046 million barrels per day for the week ended Dec. 7, a three-week low and reversing down from the high rates reported last week, and 3.9% lower than the corresponding week a year ago.
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Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Dec. 13 was at 120.05%. The value of DDG relative to soybean meal was at 52.03%. The cost per unit of protein for DDG was $5.96, compared to the cost per unit of protein for soybean meal at $6.51. The DDG value to cash corn is still above the two-year average, and the cost per unit compared to soymeal moved higher again this past week, narrowing the spread between the two.
Informa Economics noted in their weekly DDG price update that, "In the past week, central Illinois estimated margins decreased 4 cents to negative 10 cents. Ethanol plant margins could remain depressed until the summer driving season hits next spring. Merchandisers think that DDG prices could remain elevated on limited supplies, despite some livestock operations trying to cutback ration portions."
ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
COMPANY | STATE | 12/13/2018 | 12/6/2018 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $185 | $175 | $10 | |
Modified | $93 | $88 | $5 | ||
Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
Missouri Subject | Dry | $180 | $175 | $5 | |
Wet | $87 | $85 | $2 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $165 | $160 | $5 | |
Indiana | Dry | $160 | $155 | $5 | |
Iowa | Dry | $160 | $155 | $5 | |
Michigan | Dry | $155 | $150 | $5 | |
Minnesota | Dry | $160 | $155 | $5 | |
North Dakota | Dry | $170 | $165 | $5 | |
New York | Dry | $165 | $165 | $0 | |
South Dakota | Dry | $160 | $155 | $5 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $165 | $165 | $0 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $160 | $147 | $13 | |
Iowa | Dry | $175 | $160 | $15 | |
Michigan | Dry | $145 | $145 | $0 | |
Minnesota | Dry | $175 | $157 | $18 | |
Missouri | Dry | $180 | $170 | $10 | |
Ohio | Dry | $158 | $145 | $13 | |
South Dakota | Dry | $165 | $160 | $5 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $150 | $144 | $6 | |
Wet | $60 | $55 | $5 | ||
Illinois | Dry | $160 | $155 | $5 | |
Nebraska | Dry | $150 | $144 | $6 | |
Wet | $60 | $55 | $5 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $155 | $155 | $0 | |
Indiana | Dry | $150 | $150 | $0 | |
Iowa | Dry | $160 | $155 | $5 | |
Michigan | Dry | $150 | $150 | $0 | |
Minnesota | Dry | $160 | $160 | $0 | |
Nebraska | Dry | $175 | $170 | $5 | |
New York | Dry | $160 | $160 | $0 | |
North Dakota | Dry | $165 | $155 | $10 | |
Ohio | Dry | $150 | $150 | $0 | |
South Dakota | Dry | $165 | $160 | $5 | |
Wisconsin | Dry | $145 | $142 | $3 | |
Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
Indiana | Dry | $155 | $145 | $10 | |
Iowa | Dry | $150 | $140 | $10 | |
Minnesota | Dry | $160 | $145 | $15 | |
Nebraska | Dry | $155 | $135 | $20 | |
Ohio | Dry | $155 | $145 | $10 | |
South Dakota | Dry | $155 | $145 | $10 | |
California | $228 | $220 | $8 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $232 | $230 | $2 | |
*Prices listed per ton. | |||||
Weekly Average | $161 | $154 | $7 | ||
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 | 12/13/2018 | $3.7550 | $134.11 |
Soybean Meal | 12/13/2018 | $309.40 | |
DDG Weekly Average Spot Price | $161.00 | ||
DDG Value Relative to: | 12/13 | 12/6 | |
Corn | 120.05% | 115.91% | |
Soybean Meal | 52.03% | 49.68% | |
Cost Per Unit of Protein: | |||
DDG | $5.96 | $5.70 | |
Soybean Meal | $6.51 | $6.53 | |
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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