Market Matters Blog

Domestic DDG Average Price Steady

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
Connect with Mary:
The DTN domestic distillers dried grains average price was firm at $142 per ton for the week ended March 14. (DTN file photo by Elaine Shein)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was unchanged at $142 per ton for the week ended March 14 versus the prior week. The EIA reported ethanol plant production was lower again for the week ended March 8, posting a 2% decline against a year ago, as plants head in to spring maintenance season. So far, there hasn't been talk of short DDG supplies at this time.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended March 14 was at 109.98%. The value of DDG relative to soybean meal was at 47.05%. The cost per unit of protein for DDG was $5.26, compared to the cost per unit of protein for soybean meal at $6.35.

In its weekly update, the U.S. Grains Council noted that export distillers dried grain with solubles (DDGS) prices were unchanged to weaker this week compared to last week. "FOB vessel U.S. Gulf for April delivery is at $218/mt, down from last week. In part, lower liquidity as a result of challenging river logistics supported values from dropping further. Internationally, 40-foot containers to Southeast Asia (March delivery) were down $2/mt for April delivery, on average. Values for the Philippines were unchanged while values to Indonesia, Malaysia and Thailand fell."

Fog, wind and high water continue to slow barge and vessel movement in the Baton Rouge and Louisiana harbors. Tom Russell, Russell Marine, noted on March 9, "The port remains very congested. Ships waiting entry at SWP (Southwest Pass) has been a common situation since January." On top of this, snow and ice melt is heading down river from the Midwest, and there is talk that Locks 16 through 22 in the Upper Mississippi may close by the end of the weekend because of that. On the morning of March 14, the U.S. Coast Guard reported that a tow sank near Baton Rouge and the river was closed from mile marker 224.5 to mile marker 226 in order to locate the sunken vessel.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 3/14/2019 3/7/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $160 $160 $0
Wet $82 $82 $0
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 $138 $135 $3
Iowa Dry $135 $135 $0
Michigan Dry $130 $130 $0
Minnesota Dry $135 $135 $0
Missouri Dry $155 $155 $0
Ohio Dry $140 $140 $0
South Dakota Dry $142 $142 $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 $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 $209 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $217 $218 -$1
*Prices listed per ton.
Weekly Average $142 $142 $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 3/14/2019 $3.6150 $129.11
Soybean Meal 3/14/2019 $301.80
DDG Weekly Average Spot Price $142.00
DDG Value Relative to: 3/14 3/7
Corn 109.98% 111.69%
Soybean Meal 47.05% 47.02%
Cost Per Unit of Protein:
DDG $5.26 $5.26
Soybean Meal $6.35 $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

(BAS/CZ )

Comments

To comment, please Log In or Join our Community .