DDG Weekly Update
13 Jan 2020
By Mary Kennedy
DTN Cash Grains Analyst
OMAHA (DTN) -- The domestic distillers dried grains (DDG) weekly spot price from the 40 locations DTN contacted was $1 per ton lower on average at $149 per ton for the week ended Jan. 9. Prices were mixed this week as the cash corn market remains flat. The weekly Energy Information Administration report showed plants reduced ethanol production, but DDG supplies versus current demand don't appear to be affected.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Jan. 9 was at 108.86%. The value of DDG relative to soybean meal was at 50.30%. The cost per unit of protein for DDG was $5.52, compared to the cost per unit of protein for soybean meal at $6.24.
In its weekly DDGS export update, the U.S. Grains Council noted, "DDGS markets are still quiet this week as traders emerge from the holiday lull. Merchandisers report active inquiries from Asian buyers, but sales are slow so far. Barge CIF NOLA values are $1 to $2 metric ton (mt) lower this week but forecasts for winter weather across much of the Midwest this weekend/early next week could tighten the market due to logistics issues. FOB Gulf values are $3/mt lower for spot shipment while deferred positions are mostly steady. Asking prices for 40-foot containers to Southeast Asia are steady for January shipment at $246/mt while February/March values are slightly lower."
Barges moving south in the Lower Mississippi River from Cairo to the Gulf are currently subject to reduced tow sizes and safety protocols because of high water there. American Commercial Barge Line noted in their daily river update "a significant rain event is expected to impact the river system beginning tonight, 1/9, and lasting through Saturday, 1/11. The pattern is currently predicted to drop 4-7 inches of rain in St. Louis and the Illinois River. This amount of rain could impact the Lower Miss and Gulf areas in the coming weeks."
* CIF (cost, insurance and freight paid by seller) NOLA (New Orleans)
* FOB (free on board means buyer pays costs of ocean freight,
insurance, unloading, and transportation from originating port)
| ALL PRICES SUBJECT TO CONFIRMATION | CURRENT | PREVIOUS | CHANGE |
| COMPANY | STATE | | 1/9/2020 | 1/2/2020 | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |
| Missouri | Dry | $165 | $165 | $0 |
| | Wet | $83 | $83 | $0 |
| | | | | |
| Show Me Ethanol LLC, Carrollton, MO (660-542-6493) |
| Missouri | Dry | $165 | $165 | $0 |
| | Wet | $80 | $80 | $0 |
| | | |
| CHS, Minneapolis, MN (800-769-1066) |
| Illinois | Dry | $155 | $155 | $0 |
| Indiana | Dry | $150 | $150 | $0 |
| Iowa | Dry | $140 | $140 | $0 |
| Michigan | Dry | $145 | $145 | $0 |
| Minnesota | Dry | $140 | $140 | $0 |
| North Dakota | Dry | $145 | $145 | $0 |
| New York | Dry | $155 | $155 | $0 |
| South Dakota | Dry | $140 | $140 | $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 | $155 | $155 | $0 |
| Iowa | Dry | $137 | $140 | -$3 |
| Michigan | Dry | $145 | $145 | $0 |
| Minnesota | Dry | $135 | $139 | -$4 |
| Missouri | Dry | $155 | $158 | -$3 |
| Ohio | Dry | $155 | $160 | -$5 |
| South Dakota | Dry | $158 | $158 | $0 |
|
| United BioEnergy, Wichita, KS (316-616-3521) |
| Kansas | Dry | $165 | $165 | $0 |
| | Wet | $65 | $65 | $0 |
| Illinois FEB | Dry | $160 | $160 | $0 |
| Nebraska | Dry | $160 | $160 | $0 |
| | Wet | $65 | $65 | $0 |
|
| U.S. Commodities, Minneapolis, MN (888-293-1640) |
| Illinois | Dry | $155 | $155 | $0 |
| Indiana | Dry | $155 | $155 | $0 |
| Iowa | Dry | $140 | $145 | -$5 |
| Michigan | Dry | $150 | $150 | $0 |
| Minnesota | Dry | $140 | $140 | $0 |
| Nebraska | Dry | $145 | $165 | -$20 |
| New York | Dry | $170 | $170 | $0 |
| North Dakota | Dry | $150 | $150 | $0 |
| Ohio | Dry | $160 | $160 | $0 |
| South Dakota | Dry | $140 | $140 | $0 |
| Wisconsin | Dry | $140 | $140 | $0 |
| Valero Energy Corp, San Antonio Texas |
| Indiana | Dry | $150 | $150 | $0 |
| Iowa | Dry | $140 | $135 | $5 |
| Minnesota | Dry | $140 | $135 | $5 |
| Nebraska | Dry | $145 | $145 | $0 |
| Ohio | Dry | $160 | $155 | $5 |
| South Dakota | Dry | $140 | $140 | $0 |
| California | Dry | $202 | $208 | -$6 |
| Western Milling, Goshen, California (559-302-1074) |
| California | Dry | $210 | $216 | -$6 |
| *Prices listed per ton. |
| Weekly Average | | $149 | $150 | -$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 | 1/9/2020 | $3.8325 | $136.88 |
| Soybean Meal | 1/9/2020 | $296.20 |
| DDG Weekly Average Spot Price | $149.00 |
| DDG Value Relative to: | 1/9 | 1/2 |
| Corn | 108.86% | 107.28% |
| Soybean Meal | 50.30% | 49.90% |
| Cost Per Unit of Protein: |
| DDG | $5.52 | $5.56 |
| Soybean Meal | $6.24 | $6.33 |
| 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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