DDG Weekly Update
31 Jan 2018
By Mary Kennedy
DTN Basis Analyst
OMAHA (DTN) -- The DTN average distillers dried grain (DDG) spot price from the 33 locations DTN collected bids from (missing one company this week) was $149 for the week ended Feb. 1, 6 cents higher on average than two weeks ago.
Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Feb. 1 was at 115.32%, and the value of DDG relative to soybean meal was at 44.61%. The cost per unit of protein for DDG was $5.52, compared to the cost per unit of protein for soybean meal at $7.03. DDG prices continue to be well below soymeal prices, fueling demand from feeders.
A merchandiser told DTN that with ethanol production slightly lower, DDG supplies may get tighter at plants, keeping prices firm. The U.S. Energy Information Administration (EIA) noted a 3.4% inventory drop to 23.0 million barrels during the week ended Jan. 26, the first draw after four straight weekly stock builds. Plant production rate fell 2.1% to 1.04 million barrels per day (bpd) while down 2.0% year-over-year. While some merchandisers mentioned a slight decline in inclusion rates, they still remain strong as DDG remains competitively priced among the products feeders can choose from for protein intake.
The U.S. Grains Council (USGC) noted in its weekly price update that barge CIF NOLA and FOB NOLA DDGS values were lower this week as river logistics improve. American Commercial Barge Line (ACBL) reported in their daily river update that Mel Price Lock (UM 201) main chamber will remain closed until March 8, but the auxiliary chamber will be available. "Beginning to see more activity to and from the Illinois River," noted ACBL. "The volume is starting to level out and delay at Mel Price is expected to be more manageable moving forward. Friday morning there were six boats in queue; total delay is around 6 to 9 hours."
USGC also noted that DDGS prices were lower for rail-delivered product to the PNW. However, on the international front, prices for 40-foot containers to Southeast Asia increased $7/metric tons on average as demand remains robust, especially in Indonesia, Malaysia, and Japan. Prices for product destined for Japan increased $20/MT this week while product for Indonesia and Malaysia rose $11/MT.
| | CURRENT | CURRENT | CHANGE |
| COMPANY | STATE | | 2/01/2018 | 1/25/2018 |
| Bartlett and Company, Kansas City, MO (816-753-6300) |
| Missouri | Dry | $170 | $160 | $10 |
| | Modified | $85 | $80 | $5 |
| CHS, Minneapolis, MN (800-769-1066) |
| Illinois | Dry | $160 | $150 | $10 |
| Indiana | Dry | $150 | $150 | $0 |
| Iowa | Dry | $140 | $135 | $5 |
| Michigan | Dry | $160 | $155 | $5 |
| Minnesota | Dry | $140 | $140 | $0 |
| North Dakota | Dry | $150 | $150 | $0 |
| New York | Dry | $170 | $170 | $0 |
| South Dakota | Dry | $145 | $140 | $5 |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) |
| Kansas | Dry | $155 | $150 | $5 |
| POET Nutrition, Sioux Falls, SD (888-327-8799) |
| Indiana | Dry | $158 | $150 | $8 |
| Iowa | Dry | $138 | $130 | $8 |
| Michigan | Dry | $156 | $148 | $8 |
| Minnesota | Dry | $138 | $130 | $8 |
| Missouri | Dry | $158 | $150 | $8 |
| Ohio | Dry | $156 | $148 | $8 |
| South Dakota | Dry | $143 | $135 | $8 |
| ` | ` |
| United BioEnergy, Wichita, KS (316-616-3521) |
| Kansas | Dry | $150 | $150 | $0 |
| | Wet | $60 | $60 | $0 |
| Illinois | Dry | $155 | $155 | $0 |
| Nebraska | Dry | $150 | $150 | $0 |
| | Wet | $60 | $60 | $0 |
| U.S. Commodities, Minneapolis, MN (888-293-1640) |
| Illinois | Dry | $150 | $150 | $0 |
| Indiana | Dry | $145 | $140 | $5 |
| Iowa | Dry | $145 | $135 | $10 |
| Michigan | Dry | $140 | $140 | $0 |
| Minnesota | Dry | $140 | $130 | $10 |
| Nebraska | Dry | $155 | $150 | $5 |
| New York | Dry | $165 | $155 | $10 |
| North Dakota | Dry | $155 | $145 | $10 |
| Ohio | Dry | $150 | $145 | $5 |
| South Dakota | Dry | $140 | $135 | $5 |
| Wisconsin | Dry | $140 | $140 | $0 |
| Valero Energy Corp, San Antonio Texas |
| Indiana | Dry | $0 | $0 | $0 |
| Iowa | Dry | $0 | $0 | $0 |
| Minnesota | Dry | $0 | $0 | $0 |
| Nebraska | Dry | $0 | $0 | $0 |
| Ohio | Dry | $0 | $0 | $0 |
| South Dakota | Dry | $0 | $0 | $0 |
| California | | $0 | $0 | $0 |
| Western Milling, Goshen, California (559-302-1074) |
| California | Dry | $212 | $212 | $0 |
| *Prices listed per ton. |
| Weekly Average | | $149 | $143 | $6 |
| 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 | 2/1/2018 | $3.6175 | $129.20 |
| Soybean Meal | 2/1/2018 | $334.00 |
| DDG Weekly Average Spot Price | $149.00 |
| DDG Value Relative to: | 2/1 | 1/18 |
| Corn | 115.32% | 113.91% |
| Soybean Meal | 44.61% | 43.54% |
| Cost Per Unit of Protein: |
| DDG | $5.52 | $5.30 |
| Soybean Meal | $7.03 | $6.91 |
| 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 27. |
Mary Kennedy can be reached at mary.kennedy@dtn.com
Follow her on Twitter @MaryCKenn
(CZ/BAS)
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