Market Matters Blog

DTN Weekly Average DDG Price Slightly Higher

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The DTN domestic distillers dried grains weekly spot price was slightly higher on average at $141 per ton for the week ended Nov. 7. (DTN file photo)

OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly average spot price from the 40 locations DTN contacted was slightly higher at $141 per ton for the week ended Nov. 7.

Prices are mixed from various sellers again this week, but the weakness in the cash corn price due to lower futures this past week is starting to put some pressure on prices. As the cold weather season has come earlier this year, feeders will be coming to the market for more product and DDG prices will need to remain competitive.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 7 was at 105.21%. The value of DDG relative to soybean meal was at 46.13%. The cost per unit of protein for DDG was $5.22, compared to the cost per unit of protein for soybean meal at $6.43.

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In its weekly export DDGS update, the U.S. Grains Council noted: "Following last week's gains barge CIF (cost, insurance and freight paid by seller) NOLA (New Orleans, Louisiana) prices and FOB (free on board means buyer pays costs of ocean freight, insurance, unloading, and transportation from originating port) Gulf offers were slightly lower. Other quoted routes, including U.S. rail rates, are unchanged. Merchandisers report that inquiries and bids from Southeast Asia are continuing to firm but the bid/ask spread remains wide. The average prices for 40-foot containers to Southeast Asia is up $1 per metric ton (mt) to $240 per mt after increases were noted for shipments to Malaysia and Vietnam."

The U.S. Census Bureau reported this past week that U.S. exports of DDGS totaled 1,045,775 mt in September, down from 1,117,501 mt in August, but up 2% from a year ago. Mexico was the top destination in September, taking 13% U.S. exports, followed by Vietnam, Turkey, South Korea and Japan. In the first nine months of 2019, U.S. exports of distillers grains are down 6% versus one year ago.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 11/7/2019 10/31/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $153 $153 $0
Wet $77 $77 $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 $135 $135 $0
Indiana Dry $140 $140 $0
Iowa Dry $135 $135 $0
Michigan Dry $150 $150 $0
Minnesota Dry $135 $135 $0
North Dakota Dry $135 $135 $0
New York Dry $150 $150 $0
South Dakota Dry $125 $125 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $148 $148 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $150 $145 $5
Iowa Dry $137 $140 -$3
Michigan Dry $135 $135 $0
Minnesota Dry $135 $137 -$2
Missouri Dry $155 $148 $7
Ohio Dry $150 $150 $0
South Dakota Dry $145 $148 -$3
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $142 $142 $0
Wet $55 $55 $0
Illinois Dry $150 $147 $3
Nebraska Dry $142 $135 $7
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 $145 $145 $0
Minnesota Dry $135 $135 $0
Nebraska Dry $140 $140 $0
New York Dry $165 $165 $0
North Dakota Dry $135 $135 $0
Ohio Dry $145 $145 $0
South Dakota Dry $135 $135 $0
Wisconsin Dry $135 $135 $0
Valero Energy Corp, San Antonio Texas
Indiana Dry $135 $135 $0
Iowa Dry $145 $145 $0
Minnesota Dry $140 $140 $0
Nebraska Dry $135 $135 $0
Ohio Dry $145 $145 $0
South Dakota Dry $135 $135 $0
California Dry $205 $205 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $211 $211 $0
*Prices listed per ton.
Weekly Average $141 $140 $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 11/7/2019 $3.7525 $134.02
Soybean Meal 11/7/2019 $305.60
DDG Weekly Average Spot Price $141.00
DDG Value Relative to: 11/7 10/31
Corn 105.21% 100.51%
Soybean Meal 46.13% 45.99%
Cost Per Unit of Protein:
DDG $5.22 $5.19
Soybean Meal $6.43 $6.41
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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