By Mary Kennedy
DTN Cash Grains Analyst
OMAHA (DTN) -- The average distillers dried grains (DDG) spot price from the 39 locations where DTN collected bids was $162 for the week ended April 5, up $3 versus a week ago. The domestic and export markets remain firm. Prices in California rose as supplies are tight in that area. A merchandiser told me that demand in California has been very strong and some buyers have been running out before every train arrives at destination.
Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended April 5 was at 116.46%, and the value of DDG relative to soybean meal was at 42.23%. The cost per unit of protein for DDG was $6.00, compared to the cost per unit of protein for soybean meal at $8.08. The recent strength in the soybean meal market has kept DDG a good value on a per unit of protein cost.
The U.S. Grains Council (USGC) noted in its weekly price update that barge CIF NOLA values moved $15/metric ton (mt) higher and FOB NOLA prices rose $10/mt Prices for DDGS CIF Southeast Asia increased $7/mt to $240/mt. The average price increase for product destined for Southeast Asia for April and May shipments was $5/mt while prices for June shipments to these destinations increased $10/mt.
The DDGS market, along with other commodities, received troubling news on April 2 when China placed "retaliatory" tariffs of a 25% increase on sorghum, corn, DDGS, beef and soybeans. In an April 5 news release, U.S. Grains Council President and CEO Tom Sleight said, "Despite the challenges we face at the moment, never has this been more true: Ninety-five percent of the world's consumers now live outside of the United States, increasing prosperity and population growth mean more demand for the products we are selling, and the United States remains the most innovative and robust agricultural producer in the world.
"Agricultural exports contribute positively to our trade balance year in and year out, and they support millions of manufacturing, transportation and retail jobs in the United States while offering more and better food to people in the more than 75 countries that buy our coarse grains and co-products each year," said Sleight.
Here is a link to the full USGC statement:
https://grains.org/…
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE |
| COMPANY | STATE | | 4/5/2018 | 3/29/2018 |
| Bartlett and Company, Kansas City, MO (816-753-6300) |
| Missouri | Dry | $170 | $170 | $0 |
| | Modified | $85 | $85 | $0 |
| CHS, Minneapolis, MN (800-769-1066) |
| Illinois | Dry | $175 | $165 | $10 |
| Indiana | Dry | $165 | $165 | $0 |
| Iowa | Dry | $160 | $155 | $5 |
| Michigan | Dry | $170 | $168 | $2 |
| Minnesota | Dry | $160 | $155 | $5 |
| North Dakota | Dry | $165 | $160 | $5 |
| New York | Dry | $175 | $175 | $0 |
| South Dakota | Dry | $160 | $155 | $5 |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) |
| Kansas | Dry | $160 | $160 | $0 |
| POET Nutrition, Sioux Falls, SD (888-327-8799) |
| Indiana | Dry | $165 | $165 | $0 |
| Iowa | Dry | $150 | $150 | $0 |
| Michigan | Dry | $165 | $165 | $0 |
| Minnesota | Dry | $150 | $150 | $0 |
| Missouri | Dry | $170 | $170 | $0 |
| Ohio | Dry | $165 | $165 | $0 |
| South Dakota | Dry | $150 | $150 | $0 |
| ` | ` |
| United BioEnergy, Wichita, KS (316-616-3521) |
| Kansas | Dry | $163 | $163 | $0 |
| | Wet | $55 | $55 | $0 |
| Illinois | Dry | $172 | $172 | $0 |
| Nebraska | Dry | $163 | $163 | $0 |
| | Wet | $55 | $55 | $0 |
| U.S. Commodities, Minneapolis, MN (888-293-1640) |
| Illinois | Dry | $170 | $165 | $5 |
| Indiana | Dry | $170 | $165 | $5 |
| Iowa | Dry | $155 | $150 | $5 |
| Michigan | Dry | $165 | $165 | $0 |
| Minnesota | Dry | $150 | $150 | $0 |
| Nebraska | Dry | $160 | $155 | $5 |
| New York | Dry | $175 | $175 | $0 |
| North Dakota | Dry | $165 | $165 | $0 |
| Ohio | Dry | $165 | $165 | $0 |
| South Dakota | Dry | $150 | $150 | $0 |
| Wisconsin | Dry | $155 | $155 | $0 |
| Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) |
| Indiana | Dry | $167 | $167 | $0 |
| Iowa | Dry | $155 | $148 | $7 |
| Minnesota | Dry | $155 | $145 | $10 |
| Nebraska | Dry | $155 | $150 | $5 |
| Ohio | Dry | $165 | $165 | $0 |
| South Dakota | Dry | $165 | $147 | $18 |
| California | | $225 | $215 | $10 |
| Western Milling, Goshen, California (559-302-1074) |
| California | Dry | $234 | $226 | $8 |
| *Prices listed per ton. |
| Weekly Average | | $162 | $159 | $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 | 4/5/2018 | $3.8950 | $139.11 |
| Soybean Meal | 4/5/2018 | $383.60 |
| DDG Weekly Average Spot Price | $162.00 |
| DDG Value Relative to: | 4/5 | 3/29 |
| 116.46% | 114.82% |
| Soybean Meal | 42.23% | 41.40% |
| Cost Per Unit of Protein: |
| DDG | $6.00 | $5.89 |
| Soybean Meal | $8.08 | $8.08 |
| 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)
© Copyright 2018 DTN/The Progressive Farmer. All rights reserved.