Market Matters Blog
DDG Prices Continue Lower
OMAHA (DTN) -- The domestic distillers dried grains average spot price from the 40 locations DTN contacted was $7 lower at $153 per ton for the week ended Jan. 10 versus the prior week.
Spot truck values are lower once again as demand has slowed. Feeders have reformulated rations to include more soymeal after DDG prices rose in December, causing sellers to lower prices in order to move product. Even with another week of lower plant production reported by the Energy Information Administration, supplies are not an issue right now.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 10 was at 113.86%. The value of DDG relative to soybean meal was at 48.94%. The cost per unit of protein for DDG was $5.67, compared to the cost per unit of protein for soybean meal at $6.58.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
Informa Economics reported that rumors suggest China may have purchased an export cargo of DDGS from the U.S. in late 2018. "The price behavior doesn't seem to be corroborating that rumor, with cheaper prices not reflecting much optimism on significant purchases from China," the group stated.
Due to the government shutdown, there has been no shipment data released by the government, so there is no way to confirm if that did or did not happen. It would be interesting though if they did buy, given that stiff penalties still remain on U.S. DDGS imports in to China, along with the higher prices we saw in late November in to December.
ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | Previous | CHANGE | ||
COMPANY | STATE | 1/10/2019 | 1/3/2019 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $165 | $180 | -$15 | |
Modified | $85 | $90 | -$5 | ||
Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
Missouri Subject | Dry | $160 | $170 | -$10 | |
Wet | $82 | $90 | -$8 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $145 | $150 | -$5 | |
Indiana | Dry | $142 | $150 | -$8 | |
Iowa | Dry | $145 | $152 | -$7 | |
Michigan | Dry | $145 | $145 | $0 | |
Minnesota | Dry | $150 | $150 | $0 | |
North Dakota | Dry | $150 | $155 | -$5 | |
New York | Dry | $155 | $155 | $0 | |
South Dakota | Dry | $150 | $160 | -$10 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $170 | $170 | $0 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $150 | $162 | -$12 | |
Iowa | Dry | $155 | $175 | -$20 | |
Michigan | Dry | $130 | $140 | -$10 | |
Minnesota | Dry | $155 | $165 | -$10 | |
Missouri | Dry | $173 | $185 | -$12 | |
Ohio | Dry | $155 | $160 | -$5 | |
South Dakota | Dry | $160 | $165 | -$5 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $145 | $150 | -$5 | |
Wet | $60 | $60 | $0 | ||
Illinois | Dry | $150 | $160 | -$10 | |
Nebraska | Dry | $145 | $150 | -$5 | |
Wet | $60 | $60 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $145 | $155 | -$10 | |
Indiana | Dry | $145 | $155 | -$10 | |
Iowa | Dry | $155 | $165 | -$10 | |
Michigan | Dry | $145 | $155 | -$10 | |
Minnesota | Dry | $145 | $160 | -$15 | |
Nebraska | Dry | $160 | $170 | -$10 | |
New York | Dry | $165 | $175 | -$10 | |
North Dakota | Dry | $170 | $170 | $0 | |
Ohio | Dry | $155 | $155 | $0 | |
South Dakota | Dry | $160 | $170 | -$10 | |
Wisconsin | Dry | $140 | $145 | -$5 | |
Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
Indiana | Dry | $150 | $160 | -$10 | |
Iowa | Dry | $150 | $150 | $0 | |
Minnesota | Dry | $165 | $160 | $5 | |
Nebraska | Dry | $160 | $160 | $0 | |
Ohio | Dry | $160 | $160 | $0 | |
South Dakota | Dry | $155 | $160 | -$5 | |
California | $205 | $225 | -$20 | ||
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $216 | $225 | -$9 | |
*Prices listed per ton. | |||||
Weekly Average | $153 | $160 | -$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 | 1/10/2019 | $3.7625 | $134.38 |
Soybean Meal | 1/10/2019 | $312.60 | |
DDG Weekly Average Spot Price | $153.00 | ||
DDG Value Relative to: | 1/10 | 1/3 | |
Corn | 113.86% | 117.97% | |
Soybean Meal | 48.94% | 51.17% | |
Cost Per Unit of Protein: | |||
DDG | $5.67 | $5.93 | |
Soybean Meal | $6.58 | $6.58 | |
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/CZ)
© Copyright 2019 DTN/The Progressive Farmer. All rights reserved.
Comments
To comment, please Log In or Join our Community .