DTN Distillers Grain Weekly Update
2 Sep 2016
By Mary Kennedy
DTN Cash Grains Analyst
The DTN average weekly DDG spot price was down $3 for the week ended September 1 at $119 per ton. Of the 37 locations from which DTN collects spot prices, 20 showed decreases of $3 to $10 from the prior week, and the balance of the prices were unchanged. Prices were lower ahead of the upcoming three-day weekend as sellers priced product to keep supplies moving due to the Labor Day holiday creating a short week.
Prices in the Western Corn Belt saw the most weakness this past week. Informa Economics reported Thursday that Western Corn Belt markets have had September average prices above August prices in most years, but this year prices might be pushed lower due to abundant corn and its weak basis. Export movement through container yards continues on an even keel, and that's helping clear the historically large amount of supply coming to the market. This has helped limit downward pressure in the Eastern Corn Belt markets, added Informa Economics.
Average prices for the month of August in the Midwest states were down between $10.63 to down $22.65, with CIF NOLA down $18.18 per ton on average. Uncertainty over results of the recent investigation by China into imports of U.S. DDG continues to hang over the head of exporters, causing the nearby weakness at the Gulf. Some in the trade expect a decision by mid-September at the latest.
The value of DDG relative to corn for the week ending August 19 was higher at 107.54% vs. the prior week at 105.60% and the value of DDG relative to soybean meal was higher at 38.01% vs. the prior week at 37.62%. The cost per unit of protein for DDG was lower at $4.76 vs. the prior week at $4.88, compared to the cost per unit of protein for soybean meal at $6.59, which was lower vs. the prior week of $6.83.
| CURRENT | PREVIOUS |
| COMPANY | STATE | 9/1/2016 | 8/25/2016 | CHANGE |
| Bartlett and Company, Kansas City, MO (816-753-6300) |
| Missouri | Dry | $130 | $135 | -$5 |
| Modified | $65 | $65 | $0 |
| CHS, Minneapolis, MN (800-769-1066) |
| Illinois | Dry | $130 | $135 | -$5 |
| Indiana | Dry | $125 | $130 | -$5 |
| Iowa | Dry | $118 | $115 | $3 |
| Michigan | Dry | $132 | $135 | -$3 |
| Minnesota | Dry | $105 | $115 | -$10 |
| North Dakota | Dry | $105 | $110 | -$5 |
| New York | Dry | $122 | $125 | -$3 |
| South Dakota | Dry | $105 | $110 | -$5 |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) |
| Kansas | Dry | $120 | $120 | $0 |
| POET Nutrition, Sioux Falls, SD (888-327-8799) |
| Indiana | Dry | $125 | $125 | $0 |
| Iowa | Dry | $110 | $115 | -$5 |
| Michigan | Dry | $115 | $120 | -$5 |
| Minnesota | Dry | $105 | $110 | -$5 |
| Missouri | Dry | $130 | $135 | -$5 |
| Ohio | Dry | $125 | $130 | -$5 |
| South Dakota | Dry | $105 | $110 | -$5 |
| United BioEnergy, Wichita, KS (316-616-3521) |
| Kansas | Dry | $118 | $118 | $0 |
| Wet | $40 | $40 | $0 |
| Illinois | Dry | $135 | $145 | -$10 |
| Nebraska | Dry | $118 | $118 | $0 |
| Wet | $40 | $40 | $0 |
| U.S. Commodities, Minneapolis, MN (888-293-1640) |
| Illinois | Dry | $130 | $130 | $0 |
| Indiana | Dry | $125 | $125 | $0 |
| Iowa | Dry | $115 | $115 | $0 |
| Michigan | Dry | $125 | $125 | $0 |
| Minnesota | Dry | $110 | $110 | $0 |
| Nebraska | Dry | $105 | $112 | -$7 |
| New York | Dry | $125 | $125 | $0 |
| North Dakota | Dry | $115 | $115 | $0 |
| Ohio | Dry | $125 | $125 | $0 |
| South Dakota | Dry | $105 | $110 | -$5 |
| Wisconsin | Dry | $115 | $115 | $0 |
| Valero Energy Corp., San Antonio, TX (402-727-5300) |
| Indiana | Dry | $120 | $130 | -$10 |
| Iowa | Dry | $110 | $110 | $0 |
| Minnesota | Dry | $110 | $110 | $0 |
| Nebraska | Dry | $115 | $115 | $0 |
| Ohio | Dry | $130 | $130 | $0 |
| South Dakota | Dry | $105 | $105 | $0 |
| California | $175 | $185 | -$10 |
| Western Milling, Goshen, California (559-302-1074) |
| California | Dry | $181 | $185 | -$4 |
| *Prices listed per ton. |
| Weekly Average | $119 | $122 | -$3 |
| 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 | 9/1/2016 | $3.1100 | $111.07 |
| Soybean Meal | 9/1/2016 | $313.10 |
| DDG Weekly Average Spot Price | $119.00 |
| DDG Value Relative to: | 9/1 | 8/26 |
| Corn | 107.14% | 105.06% |
| Soybean Meal | 38.01% | 37.62% |
| Cost Per Unit of Protein: |
| DDG | $4.76 | $4.88 |
| Soybean Meal | $6.59 | $6.83 |
| 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 25. |
Mary Kennedy can be reached at Mary.Kennedy@dtn.com
Follow her on Twitter @MaryCKenn
(CZ\SK)
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