DDG Weekly Update
19 Nov 2019
By Mary Kennedy
DTN Cash Grains Analyst
OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly average spot price from the 40 locations DTN contacted was $2 higher at $143 per ton for the week ended Nov. 14.
Prices were mixed, but the weakness in the cash corn price has been balanced once again by stronger basis values in some areas where corn harvest is slow or stalled. The onset of early, record cold temperatures also added to feed demand.
The Energy Information Administration data released Thursday morning showed ethanol inventory fell for the third time in four weeks and to the lowest level in over two years despite a seventh straight weekly gain in ethanol plant production.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 14 was at 106.56%. The value of DDG relative to soybean meal was at 47.18%. The cost per unit of protein for DDG was $5.30, compared to the cost per unit of protein for soybean meal at $6.38. The DDG/soymeal price ratio continues to remain above the three-year average.
In its weekly export DDGS update, the U.S. Grains Council noted: "The U.S. DDGS market is higher this week while international prices are slightly lower for spot shipments. Barge CIF (cost, insurance and freight paid by seller) NOLA (New Orleans)prices are $6 to $9 per metric ton (mt) higher while FOB (free on board means buyer pays costs of ocean freight, insurance, unloading, and transportation from originating port) NOLA DDGS are up $3 to $4/mt. U.S. rail rates are $4/mt higher on average with this week's winter storm complicating logistics."
USGC also noted that internationally, merchandisers report Indonesia and Vietnam remain active buyers with several shipments secured for December and January. "South Korean buyers have reportedly been looking for product but bids from that country are below firm asking prices. On average, 40-foot containers to Southeast Asia are down $1/mt for December shipment while deferred positions are steady."
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | CURRENT | CHANGE |
| COMPANY | STATE | | 11/14/2019 | 11/7/2019 | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |
| Missouri | Dry | $155 | $153 | $2 |
| | Wet | $78 | $77 | $1 |
| | | | | |
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) |
| Missouri Subject | Dry | $150 | $150 | $0 |
| | Wet | $77 | $77 | $0 |
| | | |
| CHS, Minneapolis, MN (800-769-1066) |
| Illinois | Dry | $135 | $135 | $0 |
| Indiana | Dry | $140 | $140 | $0 |
| Iowa | Dry | $135 | $135 | $0 |
| Michigan | Dry | $150 | $150 | $0 |
| Minnesota | Dry | $135 | $135 | $0 |
| North Dakota | Dry | $135 | $135 | $0 |
| New York | Dry | $150 | $150 | $0 |
| South Dakota | Dry | $125 | $125 | $0 |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) |
| Kansas | Dry | $150 | $148 | $2 |
| POET Nutrition, Sioux Falls, SD (888-327-8799) |
| Indiana | Dry | $150 | $150 | $0 |
| Iowa | Dry | $137 | $137 | $0 |
| Michigan | Dry | $135 | $135 | $0 |
| Minnesota | Dry | $135 | $135 | $0 |
| Missouri | Dry | $155 | $155 | $0 |
| Ohio | Dry | $150 | $150 | $0 |
| South Dakota | Dry | $145 | $145 | $0 |
| United BioEnergy, Wichita, KS (316-616-3521) |
| Kansas | Dry | $150 | $142 | $8 |
| | Wet | $55 | $55 | $0 |
| Illinois | Dry | $153 | $150 | $3 |
| Nebraska | Dry | $150 | $142 | $8 |
| | Wet | $60 | $45 | $15 |
| |
| |
| U.S. Commodities, Minneapolis, MN (888-293-1640) |
| Illinois | Dry | $145 | $140 | $5 |
| Indiana | Dry | $145 | $140 | $5 |
| Iowa | Dry | $145 | $135 | $10 |
| Michigan | Dry | $140 | $145 | -$5 |
| Minnesota | Dry | $135 | $135 | $0 |
| Nebraska | Dry | $150 | $140 | $10 |
| New York | Dry | $165 | $165 | $0 |
| North Dakota | Dry | $135 | $135 | $0 |
| Ohio | Dry | $150 | $145 | $5 |
| South Dakota | Dry | $135 | $135 | $0 |
| Wisconsin | Dry | $135 | $135 | $0 |
|
| Valero Energy Corp, San Antonio Texas |
| Indiana | Dry | $150 | $135 | $15 |
| Iowa | Dry | $135 | $145 | -$10 |
| Minnesota | Dry | $135 | $140 | -$5 |
| Nebraska | Dry | $145 | $135 | $10 |
| Ohio | Dry | $150 | $145 | $5 |
| South Dakota | Dry | $140 | $135 | $5 |
| California | Dry | $208 | $205 | $3 |
| Western Milling, Goshen, California (559-302-1074) |
| California | Dry | $211 | $211 | $0 |
| *Prices listed per ton. |
| Weekly Average | | $143 | $141 | $2 |
| 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 | 11/14/2019 | $3.7575 | $134.20 |
| Soybean Meal | 11/14/2019 | $303.10 |
| DDG Weekly Average Spot Price | $143.00 |
| DDG Value Relative to: | 11/14 | 11/7 |
| Corn | 106.56% | 105.21% |
| Soybean Meal | 47.18% | 46.13% |
| Cost Per Unit of Protein: |
| DDG | $5.30 | $5.22 |
| Soybean Meal | $6.38 | $6.43 |
| 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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