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DDG Weekly Update
Mary Kennedy 12/15 11:12 AM

OMAHA (DTN) -- The DTN average distillers dried grain (DDG) spot price from the 39 locations DTN collects bids from was $133 for the week ended Dec. 14, 2 cents higher than two weeks ago.

Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Dec. 14 was at 110.75%, and the value of DDG relative to soybean meal was at 41.40%. The cost per unit of protein for DDG was $4.93, compared to the cost per unit of protein for soybean meal at $6.76.

Merchandisers noted that supplies are not as tight as the prior week, but demand remains firm, especially at the Gulf. One merchandiser noted that, as of midweek, Gulf values had gone up 4-5 cents and the value of distillers dried grain with solubles (DDGS) at the Gulf relative to corn was 125%.

Some of that strength in prices could be related to the recent problems on the Ohio River, which closed last week again at Lock 52, but did reopen Dec. 10 with 39 vessels still waiting to lock through. Then, on the morning of Dec. 14, the river closed north of Lock 52 at Olmsted for 36 hours, further causing delays. Added to that, low water down in the Memphis corridor pushed barge freight higher there as drafts are cut to 11 feet. The Mississippi River at Memphis was -1.42 below zero gauge Dec. 14.

The U.S. Grains Council (USGC) said in their weekly price update that, on a per-protein unit basis, DDGS are cheaper than soybean meal. "Rising soybean meal prices have increased demand for DDGS in feed rations, but a weaker soy complex may push some DDGS from domestic use to international destinations."

Prices for 40-foot containers of DDGS to Southeast Asia are stronger this week, noted USGC, though gains were more muted than those in the FOB Gulf market which reached levels not seen since July 2016. DDGS CIF Southeast Asia averaged $219 per metric ton (mt) this week, up $4 from last week. Product destined for Bangladesh (up $6/mt) and Myanmar (up $5/mt) experienced the largest price increases, while other destinations reported $3-$4/mt gains. "Some merchandisers are hearing strong buying interest from Vietnam, where prices rose $3/mt this week," added USGC.

CURRENT PREVIOUS CHANGE
COMPANY STATE 12/14/2017 12/7/2017
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $150 $148 $2
Modified $75 $73 $2
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $135 $130 $5
Indiana Dry $135 $130 $5
Iowa Dry $128 $125 $3
Michigan Dry $130 $120 $10
Minnesota Dry $130 $128 $2
North Dakota Dry $145 $140 $5
New York Dry $134 $132 $2
South Dakota Dry $137 $137 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $140 $140 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $130 $125 $5
Iowa Dry $125 $120 $5
Michigan Dry $130 $125 $5
Minnesota Dry $125 $120 $5
Missouri Dry $140 $140 $0
Ohio Dry $130 $125 $5
South Dakota Dry $135 $130 $5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $140 $142 -$2
Wet $65 $55 $10
Illinois Dry $148 $144 $4
Nebraska Dry $140 $142 -$2
Wet $65 $55 $10
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $140 $135 $5
Indiana Dry $130 $130 $0
Iowa Dry $130 $125 $5
Michigan Dry $125 $125 $0
Minnesota Dry $118 $118 $0
Nebraska Dry $145 $145 $0
New York Dry $140 $140 $0
North Dakota Dry $145 $145 $0
Ohio Dry $135 $130 $5
South Dakota Dry $125 $125 $0
Wisconsin Dry $130 $125 $5
Valero Energy Corp., San Antonio, TX (402-932-5901)
Indiana Dry $125 $125 $0
Iowa Dry $125 $125 $0
Minnesota Dry $120 $120 $0
Nebraska Dry $140 $140 $0
Ohio Dry $135 $130 $5
South Dakota Dry $120 $120 $0
California $195 $195 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $208 $210 -$2
*Prices listed per ton.
Weekly Average $133 $131 $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 12/14/2017 $3.3625 $120.09
Soybean Meal 12/14/2017 $321.20
DDG Weekly Average Spot Price $133.00
DDG Value Relative to: 12/14 12/7
Corn 110.75% 108.28%
Soybean Meal 41.40% 39.28%
Cost Per Unit of Protein:
DDG $4.93 $4.85
Soybean Meal $6.76 $7.02
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 Mary Kennedy on Twitter @MaryCKenn

(AG)

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