DDG Weekly Update
7 Feb 2017
By Mary Kennedy
DTN Cash Grains Analyst
The DTN average DDG spot price was unchanged from one week ago at $95 for the week ended Feb. 2. Of the 39 locations from which DTN collects spot prices, four bids were lower and the balance of the prices were unchanged.
California prices were $5 per ton lower as weather has finally improved, which has helped logistics to improve. Informa Economics said that "Markets have been quiet with fewer buyers in the market as most poultry buyers were at their industry meeting. The poultry sector has been a significant buyer of supply out of the Eastern Corn Belt and DDGS prices remain competitive and should be able to defend its place in feed rations.
The average prices collected by Informa Economics for the month of January were lower with Illinois down $14.55 per ton, Indiana down $15.79, Iowa down $4.24, Nebraska down $2.86, Minnesota down $3.33, rail delivered to Chicago down $20.83 and CIF NOLA down $14.10 per ton.
CIF NOLA (New Orleans, Louisiana) DDGS prices for the week ended Feb. 2 were unchanged to up 4 cents for February at $124 to $131 and March is at $126 to $132. In its January 2017 Thailand Grain and Feed Update released January 18, USDA FAS stated that the increase in Thailand's DDG imports has prompted the Thai government to introduce new restrictions on DDG imports. Thailand already had a 9% tariff on DDG imports. In addition, DDG imports now must include a phytosanitary certificate. "This came three months after Vietnam announced it would suspend the import of U.S. distillers' dried grains and shortly after China set its final duties on US DDGs. While all three occurrences could just be a coincidence, it seems unlikely," said Informa Economics.
The value of DDG relative to corn for the week ended Feb. 2 was lower at 72.38% vs. 73.13% the prior week. The value of DDG relative to soybean meal was higher at 28.46% versus 27.75% the prior week. The cost per unit of protein for DDG was unchanged at $3.80 compared to the cost per unit of protein for soybean meal which was lower at $7.03 vs. $7.21 the prior week.
| CURRENT | CURRENT |
| COMPANY | STATE | 2/2/2017 | 1/26/2017 | CHANGE |
| Bartlett and Company, Kansas City, MO (816-753-6300) |
| Missouri | Dry | $122 | $122 | $0 |
| | Modified | $60 | $60 | $0 |
| CHS, Minneapolis, MN (800-769-1066) |
| Illinois | Dry | $95 | $95 | $0 |
| Indiana | Dry | $90 | $90 | $0 |
| Iowa | Dry | $85 | $85 | $0 |
| Michigan | Dry | $85 | $85 | $0 |
| Minnesota | Dry | $85 | $85 | $0 |
| North Dakota | Dry | $95 | $95 | $0 |
| New York | Dry | $110 | $110 | $0 |
| South Dakota | Dry | $90 | $90 | $0 |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) |
| Kansas | Dry | $105 | $105 | $0 |
| POET Nutrition, Sioux Falls, SD (888-327-8799) |
| Indiana | Dry | $90 | $90 | $0 |
| Iowa | Dry | $100 | $100 | $0 |
| Michigan | Dry | $90 | $90 | $0 |
| Minnesota | Dry | $95 | $95 | $0 |
| Missouri | Dry | $115 | $115 | $0 |
| 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 | $100 | $0 |
| 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 | $95 | $95 | $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 | $90 | $90 | $0 |
| Wisconsin | Dry | $95 | $95 | $0 |
| Valero Energy Corp., San Antonio, TX (402-932-5901) | | |
| Indiana | Dry | $90 | $90 | $0 |
| Iowa | Dry | $100 | $105 | -$5 |
| Minnesota | Dry | $95 | $95 | $0 |
| Nebraska | Dry | $100 | $105 | -$5 |
| Ohio | Dry | $100 | $100 | $0 |
| South Dakota | Dry | $90 | $90 | $0 |
| California | $160 | $165 | -$5 |
| Western Milling, Goshen, California (559-302-1074) |
| California | Dry | $172 | $177 | -$5 |
| *Prices listed per ton. |
| Weekly Average | | $95 | $95 | $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. |
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| VALUE OF DDG VS. CORN & SOYBEAN MEAL |
| Settlement Price: | Quote Date | Bushel | Short Ton |
| Corn | 2/2/2017 | $3.6750 | $131.25 |
| Soybean Meal | 2/2/2017 | $333.80 |
| DDG Weekly Average Spot Price | $95.00 |
| DDG Value Relative to: | 2/1 | 1/26 |
| Corn | 72.38% | 73.13% |
| Soybean Meal | 28.46% | 27.75% |
| Cost Per Unit of Protein: |
| DDG | $3.80 | $3.80 |
| Soybean Meal | $7.03 | $7.21 |
| 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
(CC/AG)
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