DDG Weekly Update
2 Jul 2018
By Mary Kennedy
DTN Cash Grains Analyst
OMAHA (DTN) -- The average distillers dried grains (DDG) spot price from the 40 locations DTN contacted was lower again this week at an average of $126 per ton for the week ended June 28, down $7 versus one week ago.
Merchandisers noted the lower soymeal prices continue to pressure the DDG market, but even still, DDG has a per unit of protein cost advantage over soymeal. Also adding pressure to DDG prices is an increase in ethanol production, which is at its highest level since late December for the week ending June 22, according to the latest Energy Information Administration (EIA) report.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended June 28 was at 102.26%, and the value of DDG relative to soybean meal was at 38.02%. The cost per unit of protein for DDG was $4.67, compared to the cost per unit of protein for soybean meal at $6.98.
In its weekly DDGS price update, the U.S. Grains Council (USGC) noted, " A modest move higher in FOB U.S. Gulf corn values is helping stabilize FOB Gulf DDGS prices, with quotes for the latter mixed today but not far off last week's values. Internationally, merchandisers are reporting Asian buyers were waiting for clarity and a market floor early this week but have now "settled" with current prices. Prices for containerized shipments to Southeast Asia are steady with product destined for Bangladesh one of the few routes showing a decrease.
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE |
| COMPANY | STATE | | 6/28/2018 | 6/21/2018 |
| Bartlett and Company, Kansas City, MO (816-753-6300) |
| Missouri | Dry | $145 | $150 | -$5 |
| | Modified | $75 | $75 | $0 |
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) |
| Missouri | Dry | $140 | $160 | -$20 |
| Wet | $65 | $70 | -$5 |
| CHS, Minneapolis, MN (800-769-1066) |
| Illinois | Dry | $148 | $150 | -$2 |
| Indiana | Dry | $135 | $145 | -$10 |
| Iowa | Dry | $115 | $130 | -$15 |
| Michigan | Dry | $145 | $150 | -$5 |
| Minnesota | Dry | $110 | $125 | -$15 |
| North Dakota | Dry | $115 | $130 | -$15 |
| New York | Dry | $145 | $155 | -$10 |
| South Dakota | Dry | $115 | $130 | -$15 |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) |
| Kansas | Dry | $125 | $130 | -$5 |
| POET Nutrition, Sioux Falls, SD (888-327-8799) |
| Indiana | Dry | $145 | $150 | -$5 |
| Iowa | Dry | $115 | $130 | -$15 |
| Michigan | Dry | $145 | $160 | -$15 |
| Minnesota | Dry | $115 | $130 | -$15 |
| Missouri | Dry | $145 | $150 | -$5 |
| Ohio | Dry | $140 | $150 | -$10 |
| South Dakota | Dry | $115 | $130 | -$15 |
| United BioEnergy, Wichita, KS (316-616-3521) |
| Kansas | Dry | $125 | $140 | -$15 |
| | Wet | $35 | $40 | -$5 |
| Illinois | Dry | $150 | $150 | $0 |
| Nebraska | Dry | $125 | $140 | -$15 |
| | Wet | $35 | $40 | -$5 |
| U.S. Commodities, Minneapolis, MN (888-293-1640) |
| Illinois | Dry | $135 | $135 | $0 |
| Indiana | Dry | $130 | $135 | -$5 |
| Iowa | Dry | $115 | $125 | -$10 |
| Michigan | Dry | $125 | $135 | -$10 |
| Minnesota | Dry | $115 | $125 | -$10 |
| Nebraska | Dry | $110 | $110 | $0 |
| New York | Dry | $135 | $135 | $0 |
| North Dakota | Dry | $110 | $115 | -$5 |
| Ohio | Dry | $130 | $140 | -$10 |
| South Dakota | Dry | $110 | $115 | -$5 |
| Wisconsin | Dry | $130 | $135 | -$5 |
| Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) |
| Indiana | Dry | $130 | $130 | $0 |
| Iowa | Dry | $105 | $112 | -$7 |
| Minnesota | Dry | $105 | $110 | -$5 |
| Nebraska | Dry | $105 | $100 | $5 |
| Ohio | Dry | $140 | $140 | $0 |
| South Dakota | Dry | $110 | $110 | $0 |
| California | | $186 | $181 | $5 |
| Western Milling, Goshen, California (559-302-1074) |
| California | Dry | $210 | $215 | -$5 |
| *Prices listed per ton. |
| Weekly Average | | $126 | $133 | -$7 |
| 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 | 6/28/2018 | $3.4500 | $123.21 |
| Soybean Meal | 6/28/2018 | $331.40 |
| DDG Weekly Average Spot Price | $126.00 |
| DDG Value Relative to: | 6/28 | 6/21 |
| Corn | 102.26% | 104.31% |
| Soybean Meal | 38.02% | 40.08% |
| Cost Per Unit of Protein: |
| DDG | $4.67 | $4.93 |
| Soybean Meal | $6.98 | $6.99 |
| 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/CZ)
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