Market Matters Blog
DTN Weekly Average DDG Price Moves Higher
OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly average spot price from the 40 locations DTN contacted was up $1 at $145 per ton for the week ended Dec. 12. Prices remained firm in spite of a cheaper cash corn price this past week. A merchandiser told DTN there are a few areas running short on product.
The Energy Information Administration noted in their weekly supply report that ethanol inventory in the U.S. increased to a five-week high, while blending activity fell to the second lowest weekly rate of 2019. In addition, domestic plant production was up for a tenth consecutive week for the week ended Dec. 6.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Dec. 12 was at 110.85%. The value of DDG relative to soybean meal was at 49.06%. The cost per unit of protein for DDG was $5.37, compared to the cost per unit of protein for soybean meal at $6.22.
In its weekly export DDGS update, the U.S. Grains Council noted, "The U.S. DDGS market is quiet this week with Barge CIF NOLA and FOB NOLA offers $1 to $2 per metric ton (mt) higher. DDGS rail-delivered to the PNW are up $3/mt this week for December shipment and up $1/mt for January/February. Prices for containers to Southeast Asia are mostly higher this week, with offers $2/mt higher than last week for spot shipment and up $1/mt for deferred positions. The average price for 40-foot containers to Southeast Asia reached $244/mt for December and $243/mt for January/February."
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
* CIF (cost, insurance and freight paid by seller) NOLA (New Orleans)
* FOB (free on board means buyer pays costs of ocean freight, insurance, unloading, and transportation from originating port)
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE | ||
| COMPANY | STATE | 12/12/2019 | 12/5/2019 | ||
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $162 | $162 | $0 | |
| Wet | $81 | $81 | $0 | ||
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) | |||||
| Missouri Subject | Dry | $165 | $165 | $0 | |
| Wet | $80 | $80 | $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 | $155 | $150 | $5 | |
| South Dakota | Dry | $125 | $125 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $160 | $155 | $5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $150 | $150 | $0 | |
| Iowa | Dry | $142 | $138 | $4 | |
| Michigan | Dry | $135 | $135 | $0 | |
| Minnesota | Dry | $140 | $137 | $3 | |
| Missouri | Dry | $160 | $155 | $5 | |
| Ohio | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $150 | $150 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $150 | $150 | $0 | |
| Wet | $55 | $55 | $0 | ||
| Illinois | Dry | $153 | $153 | $0 | |
| Nebraska | Dry | $150 | $150 | $0 | |
| Wet | $60 | $60 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $150 | $145 | $5 | |
| Indiana | Dry | $150 | $145 | $5 | |
| Iowa | Dry | $140 | $145 | -$5 | |
| Michigan | Dry | $145 | $140 | $5 | |
| Minnesota | Dry | $135 | $135 | $0 | |
| Nebraska | Dry | $160 | $150 | $10 | |
| New York | Dry | $165 | $165 | $0 | |
| North Dakota | Dry | $145 | $135 | $10 | |
| Ohio | Dry | $155 | $150 | $5 | |
| South Dakota | Dry | $135 | $135 | $0 | |
| Wisconsin | Dry | $135 | $135 | $0 | |
| Valero Energy Corp, San Antonio Texas | |||||
| Indiana | Dry | $150 | $150 | $0 | |
| Iowa | Dry | $135 | $135 | $0 | |
| Minnesota | Dry | $135 | $135 | $0 | |
| Nebraska | Dry | $145 | $145 | $0 | |
| Ohio | Dry | $155 | $150 | $5 | |
| South Dakota | Dry | $140 | $140 | $0 | |
| California | Dry | $208 | $208 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $215 | $218 | -$3 | |
| *Prices listed per ton. | |||||
| Weekly Average | $145 | $144 | $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 | 12/13/2019 | $3.6625 | $130.80 |
| Soybean Meal | 12/13/2019 | $295.50 | |
| DDG Weekly Average Spot Price | $145.00 | ||
| DDG Value Relative to: | 12/12 | 12/5 | |
| Corn | 110.85% | 110.31% | |
| Soybean Meal | 49.06% | 48.08% | |
| Cost Per Unit of Protein: | |||
| DDG | $5.37 | $5.33 | |
| Soybean Meal | $6.22 | $6.31 | |
| 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. | |||
* CIF (cost, insurance and freight paid by seller) NOLA (New Orleans)
* FOB (free on board means buyer pays costs of ocean freight, insurance, unloading, and transportation from originating port)
Mary Kennedy can be reached at mary.kennedy@dtn.com
Follow her on Twitter @MaryCKenn
(CZ)
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