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DDG Weekly Update
Mary Kennedy 1/12 12:19 PM

OMAHA (DTN) -- The DTN average distillers dried grain (DDG) spot price from the 39 locations DTN collects bids from was $142 for the week ended Jan. 11, 4 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 Jan. 11 was at 114.00%, and the value of DDG relative to soybean meal was at 45.87%. The cost per unit of protein for DDG was $5.26, compared to the cost per unit of protein for soybean meal at $6.52.

Merchandisers noted that the market is higher in part due to tight supplies as ethanol plants have been running at a slower pace than normal. The EIA reported ethanol plant production in the United States fell 36,000 barrels per day (bpd) to a 996,000 bpd three-month low for the week ending Jan. 5. Higher drying costs and tight margins have been contributing factors to the slowdown.

Merchandisers told me that containers destined for Vietnam in the Midwest are still waiting to be fumigated but can't be because of the cold weather. As discussed last week, Vietnam requires temperatures (for this time of year) to be 50 to 59 degrees Fahrenheit for a minimum exposure period of five days. Also extreme ice conditions continue to plague the Illinois River where traffic is all but shut down.

American Commercial Barge Line noted Thursday that limited movement remains on the Illinois River with significant tow-size reduction. "The max tow size is nine barges below Hennepin and four barges above. One major trouble spot is the Marseilles Canal, around mile 245. There is significant ice buildup in this area, making it difficult to transit. The Marseilles Lock queue is building, currently 12 boats. Based on the current forecast, we don't anticipate returning to normal tow size for another 30 days." On top of these issues on the Illinois River, tow size southbound from St. Louis to Cairo on the Mississippi River has been reduced due to ice and low water conditions.

The U.S. Grains Council (USGC) said in its weekly price update that barge CIF NOLA prices are steady this week while FOB NOLA prices are $2/metric ton (MT) lower on light trading volume. "FOB NOLA prices are 124% of FOB NOLA corn values, which is at the upper end of the ratio's two-year trading range. Prices for 40-foot containers destined for Southeast Asia are $1/MT higher on average, but with light trading volume."

CURRENT CURRENT CHANGE
COMPANY STATE 1/11/2018 1/4/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $160 $165 -$5
Modified $80 $82 -$2
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $144 $142 $2
Indiana Dry $145 $140 $5
Iowa Dry $133 $130 $3
Michigan Dry $150 $145 $5
Minnesota Dry $135 $130 $5
North Dakota Dry $145 $145 $0
New York Dry $160 $155 $5
South Dakota Dry $140 $137 $3
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $150 $150 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $150 $145 $5
Iowa Dry $130 $128 $2
Michigan Dry $148 $140 $8
Minnesota Dry $130 $128 $2
Missouri Dry $150 $142 $8
Ohio Dry $148 $145 $3
South Dakota Dry $135 $135 $0
` `
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $145 $140 $5
Wet $60 $65 -$5
Illinois Dry $150 $148 $2
Nebraska Dry $145 $140 $5
Wet $60 $65 -$5
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $150 $140 $10
Indiana Dry $140 $130 $10
Iowa Dry $135 $130 $5
Michigan Dry $140 $135 $5
Minnesota Dry $130 $125 $5
Nebraska Dry $150 $145 $5
New York Dry $155 $140 $15
North Dakota Dry $145 $145 $0
Ohio Dry $145 $135 $10
South Dakota Dry $135 $135 $0
Wisconsin Dry $140 $130 $10
Valero Energy Corp., San Antonio, TX (402-932-5901)
Indiana Dry $140 $135 $5
Iowa Dry $135 $130 $5
Minnesota Dry $130 $125 $5
Nebraska Dry $145 $145 $0
Ohio Dry $140 $135 $5
South Dakota Dry $125 $125 $0
California $202 $200 $2
Western Milling, Goshen, California (559-302-1074)
California Dry $212 $206 $6
*Prices listed per ton.
Weekly Average $142 $138 $4
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 1/11/2018 $3.4875 $124.55
Soybean Meal 1/11/2018 $309.60
DDG Weekly Average Spot Price $142.00
DDG Value Relative to: 1/12 1/4
Corn 114.00% 110.08%
Soybean Meal 45.87% 43.70%
Cost Per Unit of Protein:
DDG $5.26 $5.11
Soybean Meal $6.52 $6.65
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

(BAS/SK)

 
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