DDG Weekly Update

By Mary Kennedy
DTN Cash Grains Analyst

The DTN average DDG spot price was unchanged from one week ago at $93 for the week ended Jan. 19. Price declines ranged from $5 to $10 per ton, and increases ranged from $2 to $9. Of the 39 locations from which DTN collects spot prices, six bids were lower, seven bids were higher and the balance of the prices were unchanged.

Merchandisers told DTN that some prices this week have rebounded a little due to the rise in soybean meal prices and corn, which has caused more interest from buyers. The slowdown in rail cars early in the month due to severe winter weather conditions caused logistical snarls, adding extra supply in the spot market, which has kept prices steady for the most part. It will be interesting to see if plants slow runtimes going forward so DDG supplies don’t become a burden. For now, DDG prices remain competitive enough to remain in feed rations.

CIF NOLA (New Orleans, Louisiana) DDGS prices for the week ended Jan. 19 were unchanged for January at $118/$128 and February was firm at $120/$128. Export demand has been slow, which is no surprise given China’s steep duties on U.S. DDGs and also because Vietnam has yet to meet with APHIS, and that means no DDGs have gone there since Dec. 17, 2016.

The value of DDG relative to corn for the week ended Jan. 19 was lower at 71.10% vs. 72.68% the prior week. The value of DDG relative to soybean meal was higher at 26.79% vs. the prior week at 28.68%. The cost per unit of protein for DDG was unchanged at $3.72 compared to the cost per unit of protein for soybean meal which was higher at $7.33 vs. $6.83 the prior week.

CURRENT Last Week
COMPANY STATE 1/19/2017 1/12/2017 CHANGE
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $122 $120 $2
Modified $60 $60 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $95 $100 -$5
Indiana Dry $80 $90 -$10
Iowa Dry $85 $90 -$5
Michigan Dry $75 $75 $0
Minnesota Dry $85 $85 $0
North Dakota Dry $95 $95 $0
New York Dry $105 $105 $0
South Dakota Dry $90 $90 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $105 $110 -$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $90 $95 -$5
Iowa Dry $98 $95 $3
Michigan Dry $90 $95 -$5
Minnesota Dry $95 $95 $0
Missouri Dry $105 $100 $5
Ohio Dry $90 $90 $0
South Dakota Dry $98 $98 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $105 $105 $0
Wet $40 $40 $0
Illinois Dry $100 $95 $5
Nebraska Dry $105 $105 $0
Wet $40 $40 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $85 $85 $0
Indiana Dry $80 $80 $0
Iowa Dry $90 $90 $0
Michigan Dry $80 $80 $0
Minnesota Dry $85 $85 $0
Nebraska Dry $100 $100 $0
New York Dry $105 $105 $0
North Dakota Dry $105 $105 $0
Ohio Dry $80 $80 $0
South Dakota Dry $85 $85 $0
Wisconsin Dry $90 $90 $0
Valero Energy Corp., San Antonio, TX (402-932-5901)
Indiana Dry $85 $85 $0
Iowa Dry $105 $100 $5
Minnesota Dry $95 $92 $3
Nebraska Dry $105 $100 $5
Ohio Dry $95 $95 $0
South Dakota Dry $90 $90 $0
California $165 $156 $9
Western Milling, Goshen, California (559-302-1074)
California Dry $172 $170 $2
*Prices listed per ton.
Weekly Average $93 $93 $0
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 1/19/2017 $3.6625 $130.80
Soybean Meal 1/19/2017 $348.20
DDG Weekly Average Spot Price $93.00
DDG Value Relative to: 1/19 1/12
Corn 71.10% 72.69%
Soybean Meal 26.71% 28.69%
Cost Per Unit of Protein:
DDG $3.72 $3.72
Soybean Meal $7.33 $6.83
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 25.

Mary Kennedy can be reached at mary.kennedy@dtn.com

(AG)