Market Matters Blog

DDG Prices Lower Again

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's weekly spot price for domestic distillers dried grains was $5 lower on average at $148 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains average spot price from the 40 locations DTN contacted was $5 lower at $148 per ton for the week ended Jan. 17 versus the prior week.

Spot truck values are lower and buyers have moved away from DDG, resulting in lower inclusion rates. The weekly EIA report showed ethanol plant production increased 51,000 barrels per day (bpd) to 1.051 million bpd, changing the course of lower production reports seen since the last week of November. This has added more DDG supplies in the market and the market is adjusting prices to keep product moving.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 17 was at 109.05%. The value of DDG relative to soybean meal was at 47.41%. The cost per unit of protein for DDG was $5.48, compared to the cost per unit of protein for soybean meal at $6.57.

Informa Economics reported on Jan. 14 that U.S. exports of DDGS to Thailand, a key U.S. market, were halted over fumigation issues. The fumigation situation cropped up after the Khapra beetle was found in shipments of U.S. DDGS in August and again in November, reports said. Merchandisers noted that, currently, Thailand is sticking with its new fumigation regulation of Methyl Bromide treatment at 70 degrees Fahrenheit, while the U.S. side wants to use phosphine. Vietnam also halted imports of U.S. DDGS until the two sides work out protocols on fumigation of shipments. The U.S. Census Bureau listed Thailand as one of the top four destinations of U.S. DDGS for the month of October 2018.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT CURRENT CHANGE
COMPANY STATE 1/17/2019 1/10/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $165 $165 $0
Modified $85 $85 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $155 $160 -$5
Wet $80 $82 -$2
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $145 $145 $0
Indiana Dry $140 $142 -$2
Iowa Dry $136 $145 -$9
Michigan Dry $145 $145 $0
Minnesota Dry $140 $150 -$10
North Dakota Dry $140 $150 -$10
New York Dry $155 $155 $0
South Dakota Dry $140 $150 -$10
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $160 $170 -$10
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $140 $150 -$10
Iowa Dry $145 $155 -$10
Michigan Dry $130 $130 $0
Minnesota Dry $145 $155 -$10
Missouri Dry $160 $173 -$13
Ohio Dry $145 $155 -$10
South Dakota Dry $150 $160 -$10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $145 $145 $0
Wet $60 $60 $0
Illinois Dry $150 $150 $0
Nebraska Dry $145 $145 $0
Wet $60 $60 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $150 $145 $5
Indiana Dry $145 $145 $0
Iowa Dry $145 $155 -$10
Michigan Dry $145 $145 $0
Minnesota Dry $145 $145 $0
Nebraska Dry $150 $160 -$10
New York Dry $165 $165 $0
North Dakota Dry $170 $170 $0
Ohio Dry $155 $155 $0
South Dakota Dry $160 $160 $0
Wisconsin Dry $140 $140 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $155 $150 $5
Iowa Dry $145 $150 -$5
Minnesota Dry $150 $165 -$15
Nebraska Dry $150 $160 -$10
Ohio Dry $160 $160 $0
South Dakota Dry $155 $155 $0
California $200 $205 -$5
Western Milling, Goshen, California (559-302-1074)
California Dry $212 $216 -$4
*Prices listed per ton.
Weekly Average $148 $153 -$5
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 1/17/2019 $3.8000 $135.71
Soybean Meal 1/17/2019 $312.20
DDG Weekly Average Spot Price $148.00
DDG Value Relative to: 1/17 1/10
Corn 109.05% 113.86%
Soybean Meal 47.41% 48.94%
Cost Per Unit of Protein:
DDG $5.48 $5.67
Soybean Meal $6.57 $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

(CZ)

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