DDG Weekly Update: Ethanol Sales on Texas Border Indicate Mexico Demand – DTN

Large Pile of Dried Distillers Grains (DDGS) at Golden Grain Energy in Mason City, Iowa. Photo: Iowa Renewable Fuels Association

The average distillers dried grain (DDG) spot price from the 39 locations where DTN collected bids was $148 for the week ended Feb. 15, $1 stronger on average than a week ago.

Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Feb. 15 was at 112.68%, and the value of DDG relative to soybean meal was at 39.60%. The cost per unit of protein for DDG was $5.48, compared to the cost per unit of protein for soybean meal at $7.87. The surge in soymeal prices the past week has kept DDG as a good value in rations.

Domestic prices were mixed, but a few states where supplies are tight saw an increase in values. The Energy Information Administration (EIA) report Wednesday showed that ethanol production for the week ending Feb. 9 was the lowest production number since the start of the year, adding to the tight supply of DDG for some plants. Merchandisers noted that prices at the Texas border remain strong, indicating continued demand form Mexico.

The U.S. Grains Council (USGC) said in its weekly price update that barge CIF NOLA prices are $8/metric ton (MT) higher this week while FOB Gulf DDGs values are up $9/MT.

“Merchandisers are reporting Asian buyers are showing only light interest at current prices, waiting for prices to moderate somewhat. However, prices for 40-foot containers to Southeast Asia increased $6/MT this week with prices to Shanghai leading the way (up $9/MT). On average, DDGS destined for Southeast Asia increased $4/MT this week.”

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

Follow her on Twitter @MaryCKenn

CURRENT CURRENT CHANGE
COMPANY STATE 2/14/2018 2/8/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $170 $170 $0
Modified $85 $85 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $150 $150 $0
Indiana Dry $150 $150 $0
Iowa Dry $140 $145 -$5
Michigan Dry $160 $160 $0
Minnesota Dry $135 $135 $0
North Dakota Dry $148 $148 $0
New York Dry $165 $165 $0
South Dakota Dry $145 $145 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $155 $155 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $165 $160 $5
Iowa Dry $138 $138 $0
Michigan Dry $170 $165 $5
Minnesota Dry $138 $138 $0
Missouri Dry $160 $160 $0
Ohio Dry $165 $160 $5
South Dakota Dry $140 $140 $0
` `
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $150 $150 $0
Wet $50 $50 $0
Illinois Dry $155 $155 $0
Nebraska Dry $150 $150 $0
Wet $50 $50 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $150 $145 $5
Indiana Dry $145 $145 $0
Iowa Dry $140 $140 $0
Michigan Dry $150 $140 $10
Minnesota Dry $135 $135 $0
Nebraska Dry $145 $150 -$5
New York Dry $165 $165 $0
North Dakota Dry $150 $150 $0
Ohio Dry $150 $150 $0
South Dakota Dry $140 $140 $0
Wisconsin Dry $140 $140 $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
Indiana Dry $145 $145 $0
Iowa Dry $135 $135 $0
Minnesota Dry $135 $135 $0
Nebraska Dry $150 $150 $0
Ohio Dry $145 $145 $0
South Dakota Dry $138 $128 $10
California $207 $197 $10
Western Milling, Goshen, California (559-302-1074)
California Dry $210 $210 $0
*Prices listed per ton.
Weekly Average $148 $147 $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 2/15/2018 $3.6775 $131.34
Soybean Meal 2/15/2018 $373.70
DDG Weekly Average Spot Price $148.00
DDG Value Relative to: 2/15 2/8
Corn 112.68% 112.53%
Soybean Meal 39.60% 43.02%
Cost Per Unit of Protein:
DDG $5.48 $5.44
Soybean Meal $7.87 $7.19
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.

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