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DDG Weekly Update
Mary Kennedy 3/22 11:27 AM
OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price from the 40 locations DTN contacted was firm at $142 per ton for the week ended March 21 versus the prior week. Seasonal maintenance downtimes have started for many plants, but some prices in the Midwest, where snow and flooding has caused serious logistic problems, were higher.
Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended March 21 was at 105.67%. The value of DDG relative to soybean meal was at 45.03%. The cost per unit of protein for DDG was $5.26, compared to the cost per unit of protein for soybean meal at $6.64.
The U.S. Grains Council noted in its weekly update, that export distillers dried grain with solubles (DDGS) prices increased this week compared to last week.
"Western U.S. rail markets (rail delivered Pacific Northwest) jumped by $7 per metric ton (mt) to $225/mt for April delivery. FOB vessel U.S. Gulf for April delivery was up $4/mt from last week to $221/mt. Heavy snow followed by rain -- and then more snow -- has resulted in widespread flooding in the U.S. Western Corn Belt and Midwest, hampering product movement by rail and river. Overall challenging logistics are expected to weigh on the market for the near-term. Internationally, 40-foot containers to Southeast Asia (April delivery) were up $3/mt for April delivery, on average."
The Mississippi River continues to be in flood stage and conditions are not expected to improve as the river in St. Paul, Minnesota, is expected to rise above major flood stage late next week. The current lock closures from Lock 16 down to Lock 22 may be extended past the end of March as that water from St. Paul moves downriver. The Gulf is still a mess as high water there continues to hamper barge unloading and vessel loadings.
"Strong currents have made conditions dangerous for ships, tugs and barges. In the last three weeks, numerous breakaways have occurred. Three tugs have been sunk by currents, and sadly the latest caused the loss of a life," said Tom Russell, Russell Marine Group.
Mary Kennedy can be reached at email@example.com
Follow her on Twitter @MaryCKenn
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