Market Matters Blog

Domestic DDG Average Price Steady

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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DTN's weekly average spot price for domestic distillers dried grains was unchanged at $141 per ton. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was steady at $141 per ton for the week ended Feb. 28 versus the prior week.

Spot truck values collected by DTN are firm on average with a notable increase in California prices. A merchandiser there said logistics are "abysmal" and getting worse in reference to the rain and snow causing flooding in parts of the state. Logistics in the Northern Plains were also a mess after last week's blizzard that caused many major roads to close, especially in southern Minnesota in to Wisconsin.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Feb. 28 was at 109.06%. The value of DDG relative to soybean meal was at 46.64%. The cost per unit of protein for DDG was $5.22, compared to the cost per unit of protein for soybean meal at $6.36.

In their weekly DDGS update, the U.S. Grains Council noted that FOB vessel U.S. Gulf for April delivery is at $224/mt, as barge logistics remain challenging. "Better weather in the coming weeks should help push more product volume to the Gulf. U.S. rail rates were unchanged for nearby delivery. Internationally, 40-foot containers to Southeast Asia (March delivery) were down $5/mt for March delivery, on average. Merchandisers have reported some volatility in prices as global buyers interpret macroeconomic and trade policy news. Meanwhile, multiple sales to Vietnam were reported."

The entire Lower Mississippi River is a mess and a recent accident at Vicksburg has closed the river south of there. A tow hit the Vicksburg Bridge, sinking 4 barges on Feb. 27 and until they are recovered, traffic will be stopped from going through Vicksburg and south down to the Gulf. Tom Russell, Russell Marine Group told DTN, "New Orleans and Baton Rouge Harbors continue to struggle with stoppages and slowdowns due high water, fog, and rain. At least 30% of production capacity has been lost, creating a backlog of ships waiting to load. The river in the harbor will remain at flood stage throughout the month of March. Expect high water conditions for an extended period of time."

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 2/28/2019 2/21/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $150 $150 $0
Wet $78 $78 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $155 $155 $0
Wet $80 $80 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $150 $150 $0
Indiana Dry $145 $145 $0
Iowa Dry $135 $135 $0
Michigan Dry $145 $145 $0
Minnesota Dry $140 $140 $0
North Dakota Dry $145 $145 $0
New York Dry $160 $160 $0
South Dakota Dry $145 $145 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $145 $145 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $135 $136 -$1
Iowa Dry $135 $134 $1
Michigan Dry $130 $130 $0
Minnesota Dry $134 $134 $0
Missouri Dry $155 $149 $6
Ohio Dry $143 $145 -$2
South Dakota Dry $145 $145 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $140 $140 $0
Wet $60 $60 $0
Illinois Dry $150 $150 $0
Nebraska Dry $140 $140 $0
Wet $60 $60 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $137 $137 $0
Indiana Dry $138 $138 $0
Iowa Dry $135 $130 $5
Michigan Dry $130 $130 $0
Minnesota Dry $130 $128 $2
Nebraska Dry $135 $130 $5
New York Dry $155 $155 $0
North Dakota Dry $155 $155 $0
Ohio Dry $145 $145 $0
South Dakota Dry $140 $140 $0
Wisconsin Dry $135 $135 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $150 $150 $0
Iowa Dry $135 $135 $0
Minnesota Dry $135 $135 $0
Nebraska Dry $135 $135 $0
Ohio Dry $155 $160 -$5
South Dakota Dry $140 $140 $0
California $204 $197 $7
Western Milling, Goshen, California (559-302-1074)
California Dry $214 $208 $6
*Prices listed per ton.
Weekly Average $141 $141 $0
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 2/28/2019 $3.6200 $129.29
Soybean Meal 2/28/2019 $302.30
DDG Weekly Average Spot Price $141.00
DDG Value Relative to: 2/28 2/21
Corn 109.06% 105.14%
Soybean Meal 46.64% 46.09%
Cost Per Unit of Protein:
DDG $5.22 $5.22
Soybean Meal $6.36 $6.44
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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