Market Matters Blog
DTN Weekly DDG Average Price Remains Steady
OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was unchanged at $141 per ton for the week ended July 11. DDG prices were mixed this week as lower seasonal demand has come into play for prices and feeders also have other competing feeds to choose from.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended July 11 was at 88.17%. The value of DDG relative to soybean meal was at 45.25%. The cost per unit of protein for DDG was $5.22, compared to the cost per unit of protein for soybean meal at $6.56.
The midweek Energy Information Administration report noted ethanol plant production dropped 3.1% to a five-week low. However, there was a roughly 200,000-barrel (bbl) build in ethanol stocks, pushing total supply to 23 million bbl, a six-week high during the week ended July 5. Margins remain tight at many plants due in part to the continued rise in the cash corn basis, especially in the Eastern Corn Belt.
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In its weekly export DDGS update, the U.S. Grains Council stated, "Barge CIF NOLA values are slightly lower while DDGS indications for FOB vessel Gulf are down $6 per metric ton (mt) for nearby delivery while deferred shipment months are down only $3/mt. Indications for 40-foot containers to Southeast Asia are up $2/mt this week."
River conditions in the Lower Mississippi River (LMR), and especially the Gulf, are worsening, with the Gulf shut down ahead of Tropical Storm Barry that could potentially become a Category 1 hurricane over the weekend. Southwest Pass (a channel at the mouth of the Mississippi River that empties into the Gulf of Mexico) shut down Wednesday afternoon, and vessels that were heading to the Gulf will wait for the storm to move through.
The Mississippi River at New Orleans is expected to spike to 19 feet Saturday should there be a storm surge. With expected rainfall of up to 2 feet falling in New Orleans and into the Lower Mississippi and Tennessee Valley, we may see the LMR close to barge traffic temporarily until the water recedes.
ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
COMPANY | STATE | 7/11/2019 | 6/27/2019 | ||
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $155 | $155 | $0 | |
Wet | $80 | $80 | $0 | ||
Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
Missouri Subject | Dry | $150 | $150 | $0 | |
Wet | $77 | $77 | $0 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $147 | $150 | -$3 | |
Indiana | Dry | $142 | $145 | -$3 | |
Iowa | Dry | $132 | $135 | -$3 | |
Michigan | Dry | $142 | $145 | -$3 | |
Minnesota | Dry | $132 | $135 | -$3 | |
North Dakota | Dry | $132 | $135 | -$3 | |
New York | Dry | $152 | $155 | -$3 | |
South Dakota | Dry | $132 | $135 | -$3 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $140 | $140 | $0 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $165 | $170 | -$5 | |
Iowa | Dry | $135 | $135 | $0 | |
Michigan | Dry | $140 | $140 | $0 | |
Minnesota | Dry | $135 | $140 | -$5 | |
Missouri | Dry | $165 | $165 | $0 | |
Ohio | Dry | $165 | $170 | -$5 | |
South Dakota | Dry | $150 | $150 | $0 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $145 | $120 | $25 | |
Wet | $40 | $45 | -$5 | ||
Illinois | Dry | $145 | $148 | -$3 | |
Nebraska | Dry | $145 | $120 | $25 | |
Wet | $45 | $45 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $140 | $140 | $0 | |
Indiana | Dry | $140 | $140 | $0 | |
Iowa | Dry | $135 | $135 | $0 | |
Michigan | Dry | $135 | $135 | $0 | |
Minnesota | Dry | $130 | $130 | $0 | |
Nebraska | Dry | $130 | $130 | $0 | |
New York | Dry | $150 | $150 | $0 | |
North Dakota | Dry | $140 | $140 | $0 | |
Ohio | Dry | $150 | $150 | $0 | |
South Dakota | Dry | $130 | $130 | $0 | |
Wisconsin | Dry | $135 | $135 | $0 | |
Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) | |||
Indiana | Dry | $140 | $140 | $0 | |
Iowa | Dry | $135 | $135 | $0 | |
Minnesota | Dry | $135 | $135 | $0 | |
Nebraska | Dry | $135 | $135 | $0 | |
Ohio | Dry | $150 | $150 | $0 | |
South Dakota | Dry | $130 | $130 | $0 | |
California | Dry | $195 | $200 | -$5 | |
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $205 | $214 | -$9 | |
*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 | 7/11/2019 | $4.4775 | $159.91 |
Soybean Meal | 7/11/2019 | $311.60 | |
DDG Weekly Average Spot Price | $141.00 | ||
DDG Value Relative to: | 7/11 | 6/27 | |
Corn | 88.17% | 89.73% | |
Soybean Meal | 45.25% | 45.16% | |
Cost Per Unit of Protein: | |||
DDG | $5.22 | $5.22 | |
Soybean Meal | $6.56 | $6.57 | |
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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