By Mary Kennedy
DTN Cash Grains Analyst
The DTN average dried distillers grains, or DDG, spot price was unchanged from one weeks ago, at $95, for the week ended April 27. Of the 39 locations from which DTN collects spot prices, eight bids were $2 to $5 higher, two bids were $2 to $8 lower and the balance of the prices were unchanged.
The value of DDG relative to corn, based on those bids for the week ended April 27, was at 73.48% and the value of DDG relative to soybean meal was at 30.59%. The cost per unit of protein for DDG was at $3.80, compared to the cost per unit of protein for soybean meal, which was at $6.54.
DDG prices have been firm with some locations posting better bids based on slightly tighter availability. Ethanol production remains below the million gallons a week growth we saw in prior weeks, as plants take spring maintenance downtimes. However, this has not made a huge impact on supplies in most places and merchandisers have said they aren't seeing many supply issues; maybe at a few spots that are down, but overall, supply is not a problem. It is likely runtimes will increase once maintenance work is done, especially if processor margins remain strong. This may cause a slight downturn in prices if supplies build up in the next few weeks, but if the price relative to corn and soymeal remains competitive, inclusion rates will likely stay at levels similar to what they are now.
CIF NOLA (New Orleans, Louisiana) dried distillers grains with solubles, or DDGS, prices for the week ended April 27 were up 3 cents for April at $124 to $126. May prices were up 2 cents to unchanged at $124 to $125. Export demand is flat, but U.S. Grains Council continues to educate new buyers about the benefits of U.S. DDGS. The grains council organized a DDGS conference in South Korea on April 25 to provide local millers with additional technical expertise and logistical support.
Ninety-six percent of feed millers in South Korea now include U.S. distiller's dried grains with solubles (DDGS) in their rations for the country's livestock and poultry industries, thanks in part to work started by the Grains Council the in 2004 to introduce this feed ingredient.
The Grains Council noted that, "South Korea purchases of U.S. DDGS continue to grow. South Korea imported nearly 845,000 metric tons of U.S. DDGS in the 2015/2016 marketing year, up from about 621,000 metric tons the prior year. In the first six months of the 2016/2017 marketing year (Sep. 2016-Feb. 2017), South Korea imported nearly 516,000 metric tons of U.S. DDGS, up 31 percent from the same time period the previous year."
The Council projects that South Korea will continue to increase its imports of U.S. DDGS with the improvement of inclusion rates and more efficient supply systems between U.S. suppliers and South Korean buyers.
| | | CURRENT | | CHANGE |
| COMPANY | | STATE | 4/27/2017 | 4/20/2017 |
| Bartlett and Company, Kansas City, MO (816-753-6300) |
| Missouri | Dry | $120 | $120 | $0 |
| | Modified | $60 | $60 | $0 |
| CHS, Minneapolis, MN (800-769-1066) |
| Illinois | Dry | $95 | $95 | $0 |
| Indiana | Dry | $95 | $95 | $0 |
| Iowa | Dry | $92 | $92 | $0 |
| Michigan | Dry | $90 | $90 | $0 |
| Minnesota | Dry | $90 | $90 | $0 |
| North Dakota | Dry | $90 | $90 | $0 |
| New York | Dry | $130 | $130 | $0 |
| South Dakota | Dry | $90 | $90 | $0 |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) |
| Kansas | Dry | $98 | $98 | $0 |
| POET Nutrition, Sioux Falls, SD (888-327-8799) |
| Indiana | Dry | $95 | $95 | $0 |
| Iowa | Dry | $93 | $90 | $3 |
| Michigan | Dry | $95 | $90 | $5 |
| Minnesota | Dry | $93 | $90 | $3 |
| Missouri | Dry | $110 | $108 | $2 |
| Ohio | Dry | $92 | $92 | $0 |
| South Dakota | Dry | $92 | $88 | $4 |
| United BioEnergy, Wichita, KS (316-616-3521) |
| Kansas | Dry | $105 | $105 | $0 |
| | Wet | $45 | $45 | $0 |
| Illinois | Dry | $105 | $105 | $0 |
| Nebraska | Dry | $105 | $105 | $0 |
| | Wet | $35 | $35 | $0 |
| U.S. Commodities, Minneapolis, MN (888-293-1640) |
| Illinois | Dry | $100 | $95 | $5 |
| Indiana | Dry | $90 | $90 | $0 |
| Iowa | Dry | $95 | $92 | $3 |
| Michigan | Dry | $95 | $95 | $0 |
| Minnesota | Dry | $85 | $85 | $0 |
| Nebraska | Dry | $95 | $100 | -$5 |
| New York | Dry | $120 | $120 | $0 |
| North Dakota | Dry | $92 | $100 | -$8 |
| Ohio | Dry | $98 | $93 | $5 |
| 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 | $90 | $90 | $0 |
| Minnesota | Dry | $90 | $90 | $0 |
| Nebraska | Dry | $105 | $105 | $0 |
| Ohio | Dry | $95 | $95 | $0 |
| South Dakota | Dry | $85 | $85 | $0 |
| California | | $155 | $155 | $0 |
| Western Milling, Goshen, California (559-302-1074) |
| California | Dry | $166 | $166 | $0 |
| *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. |
| VALUE OF DDG VS. CORN & SOYBEAN MEAL | | |
| | | |
| Settlement Price: | Quote Date | Bushel | Short Ton |
| Corn | 4/27/2017 | $3.6200 | $129.29 |
| Soybean Meal | 4/27/2017 | | $310.50 |
| DDG Weekly Average Spot Price | | | $95.00 |
| | | |
| DDG Value Relative to: | | 4/27 | 4/20 |
| Corn | | 73.48% | 74.35% |
| Soybean Meal | | 30.59% | 30.85% |
| | | |
| Cost Per Unit of Protein: | | | |
| DDG | | $3.80 | $3.80 |
| Soybean Meal | | $6.54 | $6.48 |
| 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
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