DDG Weekly Update
24 Jun 2019
By Mary Kennedy
DTN Cash Grains Analyst
OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was $4 higher this week versus the prior week, at $141 per ton for the week ended June 20. Prices overall were steady to higher, as the cash price of corn continues higher. The DTN National Corn Index gained 11 cents versus one week ago.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended June 20 was at 87.73% and, while higher this week versus last, it is still below the five-year average. The value of DDG relative to soybean meal was at 43.65%. The cost per unit of protein for DDG was $5.22, compared to the cost per unit of protein for soybean meal at $6.80.
The EIA reported for the week ended June 14, ethanol supply in the U.S. was drawn down for the fourth consecutive week, falling 200,000 bbl to a one-year low at 21.6 million bbl.
Weekly ethanol production was down, week over week, by 1.4% and up by 1.6% year over year.
In its weekly update, the U.S. Grains Council noted DDGS indications were higher again this week. "Market stakeholders report a mostly quiet market this week. DDGS indications for FOB vessel Gulf are down slightly from last week, while July delivery is becoming harder to find. Indications for 40-foot containers to Southeast Asia recovered from last week's drop, increasing $3/mt on average. Merchandisers report continued interest from Indonesia and Vietnam, and new sales to South Korea (August delivery), new sales to Indonesia and continued strong interest from buyers in Vietnam."
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE |
| COMPANY | STATE | | 6/20/2019 | 6/13/2019 | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |
| Missouri | Dry | $150 | $145 | $5 |
| | Wet | $80 | $75 | $5 |
| | | | | |
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) |
| Missouri Subject | Dry | $145 | $145 | $0 |
| | Wet | $75 | $75 | $0 |
| | | | | |
| CHS, Minneapolis, MN (800-769-1066) |
| Illinois | Dry | $150 | $150 | $0 |
| Indiana | Dry | $145 | $145 | $0 |
| Iowa | Dry | $135 | $135 | $0 |
| Michigan | Dry | $145 | $145 | $0 |
| Minnesota | Dry | $135 | $135 | $0 |
| North Dakota | Dry | $135 | $135 | $0 |
| New York | Dry | $155 | $155 | $0 |
| South Dakota | Dry | $135 | $135 | $0 |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) |
| Kansas | Dry | $138 | $135 | $3 |
| POET Nutrition, Sioux Falls, SD (888-327-8799) |
| Indiana | Dry | $160 | $140 | $20 |
| Iowa | Dry | $145 | $135 | $10 |
| Michigan | Dry | $150 | $130 | $20 |
| Minnesota | Dry | $145 | $135 | $10 |
| Missouri | Dry | $165 | $140 | $25 |
| Ohio | Dry | $165 | $150 | $15 |
| South Dakota | Dry | $145 | $145 | $0 |
| United BioEnergy, Wichita, KS (316-616-3521) |
| Kansas | Dry | $120 | $120 | $0 |
| | Wet | $45 | $45 | $0 |
| Illinois | Dry | $140 | $140 | $0 |
| Nebraska | Dry | $120 | $120 | $0 |
| | Wet | $45 | $45 | $0 |
| U.S. Commodities, Minneapolis, MN (888-293-1640) |
| Illinois | Dry | $140 | $140 | $0 |
| Indiana | Dry | $140 | $140 | $0 |
| Iowa | Dry | $135 | $135 | $0 |
| Michigan | Dry | $135 | $135 | $0 |
| Minnesota | Dry | $130 | $130 | $0 |
| Nebraska | Dry | $130 | $130 | $0 |
| New York | Dry | $150 | $150 | $0 |
| North Dakota | Dry | $140 | $140 | $0 |
| Ohio | Dry | $150 | $150 | $0 |
| South Dakota | Dry | $130 | $130 | $0 |
| Wisconsin | Dry | $135 | $130 | $5 |
| Valero Energy Corp, San Antonio Texas | (210-345-3362) | (210-345-3362) |
| Indiana | Dry | $140 | $140 | $0 |
| Iowa | Dry | $135 | $125 | $10 |
| Minnesota | Dry | $135 | $125 | $10 |
| Nebraska | Dry | $135 | $135 | $0 |
| Ohio | Dry | $150 | $150 | $0 |
| South Dakota | Dry | $130 | $130 | $0 |
| California | Dry | $202 | $205 | -$3 |
| Western Milling, Goshen, California (559-302-1074) |
| California | Dry | $220 | $215 | $5 |
| *Prices listed per ton. |
| Weekly Average | | $141 | $137 | $4 |
| 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 | 6/20/2019 | $4.5000 | $160.71 |
| Soybean Meal | 6/20/2019 | $323.00 |
| DDG Weekly Average Spot Price | $141.00 |
| DDG Value Relative to: | 6/20 | 6/13 |
| Corn | 87.73% | 86.79% |
| Soybean Meal | 43.65% | 42.59% |
| Cost Per Unit of Protein: |
| DDG | $5.22 | $5.07 |
| Soybean Meal | $6.80 | $6.77 |
| 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)
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