DTN DDG Weekly Update
29 Oct 2018
By Mary Kennedy
DTN Basis Analyst
OMAHA (DTN) -- Distillers dried grains spot prices from the 40 locations DTN contacted were mixed, but the average price was up $1 per ton at $134 per ton versus two weeks ago for the week ended Oct. 25.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Oct. 25 was at 103.93%. The value of DDG relative to soybean meal was at 44.03%. The cost per unit of protein for DDG was $4.96, compared to the cost per unit of protein for soybean meal at $6.41.
DDG prices were steady for the most part as lower corn and soymeal futures are keeping the market from moving much. Supply is not an issue as the EIA reported that ethanol plant production increased 13,000 barrels per day (bpd) to 1.024 million bpd during the week ended Oct. 19. Four-week-averaged ethanol production was 1.023 million bpd versus 1.009 million bpd during the corresponding four-week period in 2017.
In their weekly distillers dried grains with solubles (DDGS) price update, U.S. Grains Council noted, "Merchandisers report continued steady demand from Indonesia, where interest in U.S. DDGS is expected to increase going forward. Additionally, demand from Bangladesh has remained steady. Indications for November delivery of 40-foot containers to Southeast Asia are down $2/metric tons (mt) this week from last week’s figure, while prices at the U.S. Gulf are up from last week. Generally speaking, trade has been slow this week as U.S. merchandisers and buyers from around the globe came together for USGC’s Export Exchange conference."
USGC president and chief executive officer Tom Sleight noted that, "The U.S. DDGS market is once again on the rise in various parts of the world. Not only are we seeing increases of DDGS purchases in the western Hemisphere -- in Mexico and Canada -- but we are also seeing increases in countries like Indonesia, Vietnam and India."
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | CURRENT | CHANGE |
| COMPANY | STATE | | 10/25/2018 | 10/11/2018 | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |
| Missouri | Dry | $148 | $145 | $3 |
| | Modified | $78 | $75 | $3 |
| | | | | |
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) |
| Missouri | Dry | $145 | $145 | $0 |
| | Wet | $75 | $75 | $0 |
| | | | | |
| CHS, Minneapolis, MN (800-769-1066) |
| Illinois | Dry | $145 | $145 | $0 |
| Indiana | Dry | $132 | $132 | $0 |
| Iowa | Dry | $130 | $130 | $0 |
| Michigan | Dry | $140 | $140 | $0 |
| Minnesota | Dry | $130 | $130 | $0 |
| North Dakota | Dry | $130 | $130 | $0 |
| New York | Dry | $155 | $155 | $0 |
| South Dakota | Dry | $130 | $130 | $0 |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) |
| Kansas | Dry | $142 | $142 | $0 |
| POET Nutrition, Sioux Falls, SD (888-327-8799) |
| Indiana | Dry | $130 | $126 | $4 |
| Iowa | Dry | $127 | $127 | $0 |
| Michigan | Dry | $132 | $134 | -$2 |
| Minnesota | Dry | $132 | $130 | $2 |
| Missouri | Dry | $142 | $137 | $5 |
| Ohio | Dry | $137 | $135 | $2 |
| South Dakota | Dry | $130 | $128 | $2 |
| United BioEnergy, Wichita, KS (316-616-3521) |
| Kansas | Dry | $132 | $132 | $0 |
| | Wet | $55 | $55 | $0 |
| Illinois | Dry | $145 | $145 | $0 |
| Nebraska | Dry | $132 | $132 | $0 |
| | Wet | $55 | $55 | $0 |
| U.S. Commodities, Minneapolis, MN (888-293-1640) |
| Illinois | Dry | $130 | $130 | $0 |
| Indiana | Dry | $130 | $130 | $0 |
| Iowa | Dry | $125 | $125 | $0 |
| Michigan | Dry | $135 | $135 | $0 |
| Minnesota | Dry | $125 | $125 | $0 |
| Nebraska | Dry | $135 | $135 | $0 |
| New York | Dry | $140 | $140 | $0 |
| North Dakota | Dry | $140 | $140 | $0 |
| Ohio | Dry | $125 | $125 | $0 |
| South Dakota | Dry | $125 | $125 | $0 |
| Wisconsin | Dry | $130 | $130 | $0 |
| Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) |
| Indiana | Dry | $140 | $140 | $0 |
| Iowa | Dry | $125 | $125 | $0 |
| Minnesota | Dry | $130 | $130 | $0 |
| Nebraska | Dry | $135 | $135 | $0 |
| Ohio | Dry | $140 | $140 | $0 |
| South Dakota | Dry | $125 | $125 | $0 |
| California | | $187 | $187 | $0 |
| Western Milling, Goshen, California (559-302-1074) |
| California | Dry | $197 | $194 | $3 |
| *Prices listed per ton. |
| Weekly Average | | $134 | $133 | $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 | 10/25/2018 | $3.6100 | $128.93 |
| Soybean Meal | 10/25/2018 | $304.30 |
| DDG Weekly Average Spot Price | $134.00 |
| DDG Value Relative to: | 10/25 | 10/11 |
| Corn | 103.93% | 101.85% |
| Soybean Meal | 44.03% | 42.52% |
| Cost Per Unit of Protein: |
| DDG | $4.96 | $4.93 |
| Soybean Meal | $6.41 | $6.59 |
| 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/SK)
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