DDG Weekly Update
4 Jun 2018
By Mary Kennedy
DTN Cash Grains Analyst
OMAHA (DTN) -- The average distillers dried grains (DDG) spot price from the 39 locations DTN contacted was $171 per ton for the week-ended May 31, $1 weaker versus one week ago.
Merchandisers noted that DDG trading has been quiet since the Memorial Day holiday weekend, and many have already sold product through June. CIF New Orleans, Louisiana, (NOLA) DDGS values have been flat to weaker, and overall, prices have been under pressure from lower soymeal and corn markets.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week-ended May 31 was at 121.52%, and the value of DDG relative to soybean meal was at 45.56%. The cost per unit of protein for DDG was $6.33, compared to the cost per unit of protein for soybean meal at $7.90. On a protein basis, DDG prices are still a good value compared to other byproducts.
Spot offers have become aggressive due to slow railcar logistics that are causing some plants to run short on storage room, noted the U.S. Grains Council (USGC). In their weekly price update, USGC reported that, "Barge CIF NOLA DDGS prices are $10/metric ton (mt) lower for June shipments because of the logistics constraints. On the export markets, FOB NOLA prices fell $1/mt while CNF Southeast Asia prices were mostly steady. June shipments to Asia (CNF prices) rose $1/mt while July/August shipment values were steady."
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE |
| COMPANY | STATE | | 5/31/2018 | 5/24/2018 | |
| Bartlett and Company, Kansas City, MO (816-753-6300) |
| Missouri | Dry | $175 | $180 | -$5 |
| | Modified | $88 | $90 | -$2 |
| CHS, Minneapolis, MN (800-769-1066) |
| Illinois | Dry | $180 | $184 | -$4 |
| Indiana | Dry | $174 | $175 | -$1 |
| Iowa | Dry | $170 | $170 | $0 |
| Michigan | Dry | $175 | $175 | $0 |
| Minnesota | Dry | $170 | $170 | $0 |
| North Dakota | Dry | $170 | $170 | $0 |
| New York | Dry | $175 | $175 | $0 |
| South Dakota | Dry | $165 | $165 | $0 |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) |
| Kansas | Dry | $160 | $160 | $0 |
| POET Nutrition, Sioux Falls, SD (888-327-8799) |
| Indiana | Dry | $180 | $180 | $0 |
| Iowa | Dry | $170 | $170 | $0 |
| Michigan | Dry | $180 | $180 | $0 |
| Minnesota | Dry | $170 | $170 | $0 |
| Missouri | Dry | $185 | $185 | $0 |
| Ohio | Dry | $180 | $180 | $0 |
| South Dakota | Dry | $170 | $170 | $0 |
| ` | ` |
| United BioEnergy, Wichita, KS (316-616-3521) |
| Kansas | Dry | $162 | $162 | $0 |
| | Wet | $50 | $50 | $0 |
| Illinois | Dry | $181 | $181 | $0 |
| Nebraska | Dry | $162 | $162 | $0 |
| | Wet | $50 | $50 | $0 |
| U.S. Commodities, Minneapolis, MN (888-293-1640) |
| Illinois | Dry | $175 | $175 | $0 |
| Indiana | Dry | $175 | $175 | $0 |
| Iowa | Dry | $160 | $170 | -$10 |
| Michigan | Dry | $170 | $170 | $0 |
| Minnesota | Dry | $165 | $170 | -$5 |
| Nebraska | Dry | $150 | $155 | -$5 |
| New York | Dry | $180 | $180 | $0 |
| North Dakota | Dry | $165 | $170 | -$5 |
| Ohio | Dry | $170 | $170 | $0 |
| South Dakota | Dry | $160 | $165 | -$5 |
| Wisconsin | Dry | $170 | $170 | $0 |
| Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) |
| Indiana | Dry | $180 | $180 | $0 |
| Iowa | Dry | $170 | $170 | $0 |
| Minnesota | Dry | $170 | $170 | $0 |
| Nebraska | Dry | $170 | $170 | $0 |
| Ohio | Dry | $180 | $180 | $0 |
| South Dakota | Dry | $165 | $165 | $0 |
| California | | $234 | $234 | $0 |
| Western Milling, Goshen, California (559-302-1074) |
| California | Dry | $238 | $243 | -$5 |
| *Prices listed per ton. |
| Weekly Average | | $171 | $172 | $1 |
| 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 | 5/31/2018 | $3.9400 | $140.71 |
| Soybean Meal | 5/31/2018 | | $375.30 |
| DDG Weekly Average Spot Price | | | $171.00 |
| DDG Value Relative to: | 5/31 | 5/24 |
| Corn | 121.52% | 119.13% |
| Soybean Meal | 45.56% | 45.59% |
| Cost Per Unit of Protein: |
| DDG | $6.33 | $6.37 |
| Soybean Meal | $7.90 | $7.94 |
| 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
(BAS/AG)
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