Market Matters Blog

Domestic DDG Average Price Slightly Higher

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains average price was slightly higher at $142 per ton for the week ended March 7. (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 to 1 cent higher at $142 per ton for the week ended March 7 versus the prior week. Prices have been flat recently, on average, and for the month of February. The DTN average price was steady at $141 per ton.

Spot truck values collected by DTN are slightly higher on average, with another increase noted in California prices. Weekly Class 1 railroad service updates sent to the Surface Transportation Board show that most rail carriers who serve California have a backlog of cars to deliver because of the continued rain causing ongoing flooding there in the past few weeks, hampering rail movement.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended March 7 was at 111.69%. The value of DDG relative to soybean meal was at 47.02%. The cost per unit of protein for DDG was $5.26, compared to the cost per unit of protein for soybean meal at $6.36.

In its weekly DDGS update, the U.S. Grains Council noted that FOB vessel U.S. Gulf for April delivery is at $227 per metric ton (down slightly from the prior week). "The industry expects another month of challenging logistics on the Mississippi river system as a result of weather. U.S. rail rates were unchanged for nearby delivery. Internationally, 40-foot containers to Southeast Asia (March delivery) were down $2 per metric ton (mt) for April delivery, on average."

The U.S. Census Bureau reported on March 6 that U.S. exports of DDGS totaled 890,491 mt in December, down from 1,016,544 mt in November and down 9% from a year ago. U.S. DDGS continue to find broad interest with Mexico, Vietnam, Indonesia, Thailand and South Korea listed as the top five destinations. 2018 ended with exports of U.S. DDGS up 8% from a year ago.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 3/7/2019 2/28/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $160 $150 $10
Wet $82 $78 $4
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $155 $155 $0
Wet $85 $85 $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 $135 $0
Iowa Dry $135 $135 $0
Michigan Dry $130 $130 $0
Minnesota Dry $135 $134 $1
Missouri Dry $155 $155 $0
Ohio Dry $140 $143 -$3
South Dakota Dry $142 $145 -$3
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 $135 $0
Michigan Dry $130 $130 $0
Minnesota Dry $130 $130 $0
Nebraska Dry $135 $135 $0
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 $155 $0
South Dakota Dry $140 $140 $0
California $209 $204 $5
Western Milling, Goshen, California (559-302-1074)
California Dry $218 $214 $4
*Prices listed per ton.
Weekly Average $142 $141 $1
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 3/7/2019 $3.5600 $127.14
Soybean Meal 3/7/2019 $302.00
DDG Weekly Average Spot Price $142.00
DDG Value Relative to: 3/7 2/28
Corn 111.69% 109.06%
Soybean Meal 47.02% 46.64%
Cost Per Unit of Protein:
DDG $5.26 $5.22
Soybean Meal $6.36 $6.36
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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