By Cheryl Anderson
DTN Staff Reporter
The past week has been a quiet one for the dried distillers grains market, with lower prices finally resulting in higher inclusions rates and better local demand.
The DTN weekly DDG spot price average remained unchanged this week at $116 per ton. Finally leveling off, this is the first week the average has not seen a decrease since late July, but it is still the lowest point since late November 2014.
Of the 36 Midwestern locations DTN collects spot prices from, 22 locations reported their spot prices had remained unchanged in the past week. Prices at eight locations decreased between $3 and $10 per ton, while six locations all reported price increases of $5 per ton.
Merchandisers told DTN that trade was fairly flat this week, but were optimistic for coming weeks and believed that prices may have finally bottomed out. Most said that plants were seeing better margins. With barge freights dropping just a bit and rail numbers improving, local truck markets were also starting to flatten out, as local truck charges were near or higher than shipping to California, Mexico or the Gulf.
Domestic demand is doing better this week with the value of DDG relative to corn finally down around 87% this week. Those better values are leading producers to increase the inclusion rate of DDG in livestock rations, as it is now a better value than corn or soybean meal.
The improved local demand is making up for export markets, which are still comparatively slow. Although September export numbers will be down for September, some merchandisers felt that exports are beginning to rebound just slightly. Export demand is still dependent on the China market, and some merchandisers said that DDG prices may not increase until the China market rebounds.
Most merchandisers did not think harvest will have much of an effect on DDG prices right now, as so far this harvest has been fairly smooth and quickly due to favorable weather.
The value of DDG relative to corn this week was at about 87%, up about 4% from last week, but still in a very healthy, competitive range compared to past history when values soared up to 120% to 130%, severely curtailing usage. The value of DDG relative to soybean meal fell slightly, from about 28% last week to about 37% this week.
The cost per unit of protein for DDG was about $4.64 this week, compared to the cost per unit of protein for soybean meal at about $6.61.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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IN THE NEWS
FDA to Hold Public Meeting for FSMA Implementation
A public meeting to discuss FDA's next phase of FSMA implement will be held in Chicago on Oct. 20.
By Cheryl Anderson
DTN Staff Reporter
The U.S. Food and Drug Administration will be holding a public meeting Tuesday to discuss its planning for the next phase of implementation for the Food Safety Modernization Act, according to an announcement on the FDA website (http://1.usa.gov/…).
The Food Safety Modernization Act is the biggest reform of U.S. food safety laws in more than 70 years and contains many new rules and regulations that affect the feed and grains industry, as well as ethanol producers. These rules were recently finalized by FDA and will apply to any domestic or foreign facilities that manufacture, process, pack or store human food, animal feed, or pet food.
The next phase of FSMA implementation involves beginning new public health prevention measure and risk-based industry accountability which FDA considers "the core of the act."
The agenda will include overviews on the final rules for preventive controls for both human and animal foods, a FSMA implementation update, an overview of preventive controls implementation strategies, an overview of FDA's FSMA technical assistance overview and plans for education, outreach and training by FDA's newly formed Food Safety Preventive Controls Alliance. Question and answer session will be held throughout the day.
The upcoming FDA meeting will be held Oct. 20 from 8:30 a.m. to 5:30 p.m. at the Chicago Marriot Downtown Magnificent Mile. Registration information is located on the FDA website (http://bit.ly/…). Advance registration for in person attendance is now closed and on-site registration will be available on a first come, first served basis. However, registration to attend via live webcast is still open.
A recording of the webcast, as well as a written transcript will be posted to the FDA website once available after the meeting.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com
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DTN WEEKLY DDG SPOT PRICES
| CURRENT | PREVIOUS |
| COMPANY | STATE | 10/16/2015 | 10/9/2015 | CHANGE |
| Bartlett and Company, Kansas City, MO (816-753-6300) |
| Missouri | Dry | $135 | $135 | $0 |
| | Modified | $65 | $65 | $0 |
| CHS, Minneapolis, MN (800-769-1066) |
| Illinois | Dry | $120 | $128 | -$8 |
| Indiana | Dry | $115 | $115 | $0 |
| Iowa | Dry | $115 | $110 | $5 |
| Michigan | Dry | $122 | $122 | $0 |
| Minnesota | Dry | $105 | $115 | -$10 |
| North Dakota | Dry | $115 | $115 | $0 |
| New York | Dry | $150 | $160 | -$10 |
| South Dakota | Dry | $115 | $115 | $0 |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) |
| Kansas | Dry | $125 | $125 | $0 |
| POET Nutrition, Sioux Falls, SD (888-327-8799) |
| Indiana | Dry | $120 | $120 | $0 |
| Iowa | Dry | $110 | $110 | $0 |
| Michigan | Dry | $120 | $125 | -$5 |
| Minnesota | Dry | $105 | $108 | -$3 |
| Missouri | Dry | $125 | $125 | $0 |
| Ohio | Dry | $125 | $125 | $0 |
| South Dakota | Dry | $108 | $108 | $0 |
| United BioEnergy, Wichita, KS (316-616-3521) |
| Kansas | Dry | $127 | $130 | -$3 |
| | Wet | $50 | $50 | $0 |
| Illinois | Dry | $133 | $136 | -$3 |
| Nebraska | Dry | $127 | $130 | -$3 |
| | Wet | $50 | $50 | $0 |
| U.S. Commodities, Minneapolis, MN (888-293-1640) |
| Illinois | Dry | $115 | $120 | -$5 |
| Indiana | Dry | $115 | $115 | $0 |
| Iowa | Dry | $105 | $105 | $0 |
| Michigan | Dry | $115 | $115 | $0 |
| Minnesota | Dry | $100 | $100 | $0 |
| Nebraska | Dry | $115 | $115 | $0 |
| New York | Dry | $140 | $140 | $0 |
| North Dakota | Dry | $115 | $115 | $0 |
| Ohio | Dry | $120 | $115 | $5 |
| South Dakota | Dry | $105 | $105 | $0 |
| Wisconsin | Dry | $115 | $115 | $0 |
| Valero Energy Corp., San Antonio, TX (402-727-5300) |
| Indiana | Dry | $120 | $115 | $5 |
| Iowa | Dry | $105 | $100 | $5 |
| Minnesota | Dry | $105 | $100 | $5 |
| Nebraska | Dry | $115 | $115 | $0 |
| Ohio | Dry | $125 | $125 | $0 |
| South Dakota | Dry | $105 | $100 | $5 |
| Western Milling, Goshen, California (559-302-1074) |
| California | Dry | $185 | $180 | $5 |
| *Prices listed per ton. |
| Weekly Average | | $116 | $116 | $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. |
*The spot prices gathered by DTN are only intended to reflect general market trends and may vary. Please contact individual plant or merchandiser for exact prices.
If you would be willing to take a weekly phone call and have your distiller grains spot prices listed in this feature, please contact Cheryl Anderson at (308) 224-1527 or (800) 369-7875, or e-mail cheryl.anderson@dtn.com.
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| VALUE OF DDG VS. CORN & SOYBEAN MEAL |
| Settlement Price: | Quote Date | Bushel | Short Ton |
| Corn | 10/15/2015 | $3.7550 | $134.11 |
| Soybean Meal | 10/15/2015 | | $314.00 |
| DDG Weekly Average Spot Price | | | $116.00 |
| DDG Value Relative to: | 10/16 | 10/9 | 10/2 |
| Corn | 86.50% | 83.02% | 84.99% |
| Soybean Meal | 36.94% | 38.18% | 39.00% |
| Cost Per Unit of Protein: |
| DDG | $4.64 | $4.64 | $4.72 |
| Soybean Meal | $6.61 | $6.40 | $6.37 |
| Notes: |
| Corn and soybean prices taken 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 25. |
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USDA MARKET NEWS/DISTILLER GRAINS PRICES
USDA WEEKLY DISTILLERS GRAINS SUMMARY (Oct 9, 2015)
| Dried | Modified | Wet |
| FOB PLANT PRICES PER TON |
| Iowa | 97.00-110.00 | 50.00-65.00 | 35.00-40.00 |
| Minnesota | 105.00-120.00 | 55.00 | 34.00-40.00 |
| Nebraska | 105.00-127.50 | 58.00-66.00 | 43.00-56.00 |
| South Dakota | 100.00-115.00 | 55.00-66.50 | 38.00-43.00 |
| Wisconsin | 115.00-135.00 | 50.00-60.00 | NQ |
| Eastern Corn Belt | 114.00-135.00 | 55.00-58.00 | NQ |
| Kansas | 120.00-145.00 | NQ | 45.00-65.00 |
| Northern Missouri | 125.00-138.00 | NQ | 40.00-42.00 |
| DELIVERED PRICES PER TON |
| CIF NOLA | 154.00-162.00 | | |
| Pacific Northwest | 168.00-176.00 | | |
| California | 165.00-172.00 | | |
| Texas Border (metric ton) | 185.00-205.00 | | |
| Lethbridge AB | 150.00 | | |
| Chicago | 128.00-140.00 | | |
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Oct 13, 2015)
Distillers Dry Grains
Rail to California Points 175.00 up 3.00
FOB Truck to California Points 180.00-185.00 up 5.00-dn 1.00
PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Sep 29, 2015)
Offers for Distillers Dried Grains delivered in September by rail to feed mills in the Pacific Northwest were steady from 169.00-180.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were steady from 187.00-195.00.
*All prices quoted per ton unless otherwise noted.
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NASS/USDA MONTHLY CO-PRODUCTS PRODUCTION
Dry and Wet Mill, Co-products and Products Produced - United States
June 2015 - August 2015
Sep 1, 2015
Highlights:
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.94 million tons during August 2015, down 3 percent from July 2015 and down 2 percent from June 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.15 million tons in August 2015, up 1 percent from July 2015 and up 1 percent from June 2015.
Wet mill corn gluten feed production was 343.5 thousand tons during August 2015, up 3 percent from July 2015 and up 7 percent from June 2015. Wet corn gluten feed 40 to 60 percent moisture was 290.7 thousand tons in August 2015, down 8 percent from July 2015 and down 5 percent from June 2015.
| Co-products and Products | May 2015 | Jun 2015 | Jul 2015 |
| Dry Mill | | tons | |
| Condensed distillers solubles (CDS-syrup) | 145,244 | 149,927 | 155,218 |
| Corn oil | 120,582 | 125,497 | 121,810 |
| Distillers dried grains (DDG) | 407,259 | 450,829 | 452,969 |
| Distillers dried grains with solubles (DDGS) | 1,976,508 | 2,000,851 | 1,943,205 |
| Modified distillers wet grains (DWG) <65% moisture | 1,136,491 | 1,137,600 | 1,151,047 |
| Modified distillers wet grains (DWG) 40-64% moisture | 367,092 | 350,460 | 341,837 |
| Wet Mill | | | |
| Corn germ meal | 63,188 | 68,528 | 66,563 |
| Corn gluten feed | 321,209 | 333,828 | 343,476 |
| Corn gluten meal | 92,237 | 97,130 | 96,072 |
| Corn oil | 51,281 | 53,364 | 52,514 |
| Wet corn gluten feed 40-60% moisture | 214,995 | 225,675 | 217,778 |
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RFA WEEKLY U.S. LIVESTOCK FEED PRODUCTION
| CO-PRODUCT OUTPUTS (metric tons) |
| Week Ending | Distillers Grains | Corn Gluten Feed | Corn Gluten Meal | Total Feed | Corn Oil (lbs.) |
| 9/04/15 | 94671 | 9787 | 1812 | 106270 | 5635945 |
| 9/11/15 | 94967 | 9818 | 1818 | 106603 | 5653594 |
| 9/18/15 | 92695 | 9583 | 1775 | 104052 | 5518284 |
| 9/30/15 | 93189 | 9634 | 1784 | 104606 | 5547700 |
*Information from 2010 Weekly U.S. Fuel Ethanol/Livestock Feed Production report (http://www.ethanolrfa.org/…)
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DDG LINKS/RESOURCES
Organizations
*Distillers Grains Technology Council
http://www.distillersgrains.org
*National Corn Growers Association Corn Distillers Grains Brochure
http://ncga.com/…
*Iowa Corn
http://www.iowacorn.org/…
Nebraska Corn Board
http://www.nebraskacorn.org/…
*Renewable Fuels Association - Ethanol Co-Products
http://www.ethanolrfa.org/…
*American Coalition for Ethanol
http://www.ethanol.org/…
*U.S. Grains Council
http://www.grains.org/…
*South Dakota Corn Utilization Council
http://www.drieddistillersgrains.com
Government Sites
*Iowa Department of Agriculture and Land Stewardship/Office of Renewable Fuels & Coproducts
http://www.distillersgrains.com
University Sites
*University of Minnesota - Distillers Grains By-Products in Livestock
and Poultry Feed
http://www.ddgs.umn.edu
*University of Illinois - Illinois Livestock Integrated Focus Team Distillers Grains site
http://ilift.traill.uiuc.edu/…
*University of Nebraska - Beef Cattle Production By-Product Feeds site
http://beef.unl.edu/…
*University of Nebraska Extension
http://ianrpubs.unl.edu/…
*Iowa Beef Center - Iowa State University
http://www.iowabeefcenter.org/…
*University of Missouri - Byproducts Resource Page
http://agebb.missouri.edu/…
*South Dakota State University - Dairy Science Department - Dairy cattle research
http://dairysci.sdstate.edu/…
(select "Distillers Grains" from the topic menu)
*Purdue University Renewable Energy Web Site
http://www.extension.purdue.edu/…
(select "Biofuels Co-Products from the menu)
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DDG CONFERENCES
*Distillers Grains Technology Council Inc.'s 19th Annual Distillers Grains Symposium
The Distillers Grains Technology Council will hold its 19th Annual Distillers Grains Symposium on May 13-14, 2015 at the Sheraton Crown Center at Kansas City, Missouri. For information, contact the DGTC office at (515) 294-4019 or (800) 759-3448, or check the DGTC website (http://www.distillersgrains.org).
(If you are sponsoring or know of any event, conference or workshop on distillers grains, and would like to list it in the DTN Weekly Distillers Grains Update, please contact Cheryl Anderson (see contact info below).
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We welcome any comments/suggestions for this feature. Please let us know what information is valuable to you that we could include in the Distillers Grains Weekly Update. Please feel free to contact Cheryl Anderson at (402) 364-2183, or e-mail cheryl.anderson@dtn.com.
(SK)
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