DDG Weekly Update
23 Jan 2017
By Mary Kennedy
DTN Cash Grains Analyst
The DTN average DDG spot price was unchanged from one week ago at $93 for the week ended Jan. 19. Price declines ranged from $5 to $10 per ton, and increases ranged from $2 to $9. Of the 39 locations from which DTN collects spot prices, six bids were lower, seven bids were higher and the balance of the prices were unchanged.
Merchandisers told DTN that some prices this week have rebounded a little due to the rise in soybean meal prices and corn, which has caused more interest from buyers. The slowdown in rail cars early in the month due to severe winter weather conditions caused logistical snarls, adding extra supply in the spot market, which has kept prices steady for the most part. It will be interesting to see if plants slow runtimes going forward so DDG supplies don't become a burden. For now, DDG prices remain competitive enough to remain in feed rations.
CIF NOLA (New Orleans, Louisiana) DDGS prices for the week ended Jan. 19 were unchanged for January at $118/$128 and February was firm at $120/$128. Export demand has been slow, which is no surprise given China's steep duties on U.S. DDGs and also because Vietnam has yet to meet with APHIS, and that means no DDGs have gone there since Dec. 17, 2016.
The value of DDG relative to corn for the week ended Jan. 19 was lower at 71.10% vs. 72.68% the prior week. The value of DDG relative to soybean meal was higher at 26.79% vs. the prior week at 28.68%. The cost per unit of protein for DDG was unchanged at $3.72 compared to the cost per unit of protein for soybean meal which was higher at $7.33 vs. $6.83 the prior week.
| | | CURRENT | Last Week | |
| COMPANY | STATE | | 1/19/2017 | 1/12/2017 | CHANGE |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |
| Missouri | Dry | $122 | $120 | $2 |
| | Modified | $60 | $60 | $0 |
| CHS, Minneapolis, MN (800-769-1066) |
| Illinois | Dry | $95 | $100 | -$5 |
| Indiana | Dry | $80 | $90 | -$10 |
| Iowa | Dry | $85 | $90 | -$5 |
| Michigan | Dry | $75 | $75 | $0 |
| Minnesota | Dry | $85 | $85 | $0 |
| North Dakota | Dry | $95 | $95 | $0 |
| New York | Dry | $105 | $105 | $0 |
| South Dakota | Dry | $90 | $90 | $0 |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) |
| Kansas | Dry | $105 | $110 | -$5 |
| POET Nutrition, Sioux Falls, SD (888-327-8799) |
| Indiana | Dry | $90 | $95 | -$5 |
| Iowa | Dry | $98 | $95 | $3 |
| Michigan | Dry | $90 | $95 | -$5 |
| Minnesota | Dry | $95 | $95 | $0 |
| Missouri | Dry | $105 | $100 | $5 |
| Ohio | Dry | $90 | $90 | $0 |
| South Dakota | Dry | $98 | $98 | $0 |
| United BioEnergy, Wichita, KS (316-616-3521) |
| Kansas | Dry | $105 | $105 | $0 |
| | Wet | $40 | $40 | $0 |
| Illinois | Dry | $100 | $95 | $5 |
| Nebraska | Dry | $105 | $105 | $0 |
| | Wet | $40 | $40 | $0 |
| U.S. Commodities, Minneapolis, MN (888-293-1640) |
| Illinois | Dry | $85 | $85 | $0 |
| Indiana | Dry | $80 | $80 | $0 |
| Iowa | Dry | $90 | $90 | $0 |
| Michigan | Dry | $80 | $80 | $0 |
| Minnesota | Dry | $85 | $85 | $0 |
| Nebraska | Dry | $100 | $100 | $0 |
| New York | Dry | $105 | $105 | $0 |
| North Dakota | Dry | $105 | $105 | $0 |
| Ohio | Dry | $80 | $80 | $0 |
| South Dakota | Dry | $85 | $85 | $0 |
| Wisconsin | Dry | $90 | $90 | $0 |
| Valero Energy Corp., San Antonio, TX (402-932-5901) | | |
| Indiana | Dry | $85 | $85 | $0 |
| Iowa | Dry | $105 | $100 | $5 |
| Minnesota | Dry | $95 | $92 | $3 |
| Nebraska | Dry | $105 | $100 | $5 |
| Ohio | Dry | $95 | $95 | $0 |
| South Dakota | Dry | $90 | $90 | $0 |
| California | | $165 | $156 | $9 |
| Western Milling, Goshen, California (559-302-1074) |
| California | Dry | $172 | $170 | $2 |
| | | | | |
| *Prices listed per ton. | | | | |
| |
| Weekly Average | | $93 | $93 | $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 | 1/19/2017 | $3.6625 | $130.80 |
| Soybean Meal | 1/19/2017 | $348.20 |
| DDG Weekly Average Spot Price | $93.00 |
| DDG Value Relative to: | 1/19 | 1/12 |
| Corn | 71.10% | 72.69% |
| Soybean Meal | 26.71% | 28.69% |
| Cost Per Unit of Protein: |
| DDG | $3.72 | $3.72 |
| Soybean Meal | $7.33 | $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
(AG)
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