Distiller’s Grains: Slow Corn Harvest Balances Cash Weakness – DTN

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

The domestic distillers dried grains (DDG) weekly average spot price from the 40 locations DTN contacted was $2 higher at $143 per ton for the week ended Nov. 14.

Prices were mixed, but the weakness in the cash corn price has been balanced once again by stronger basis values in some areas where corn harvest is slow or stalled. The onset of early, record cold temperatures also added to feed demand.

The Energy Information Administration data released Thursday morning showed ethanol inventory fell for the third time in four weeks and to the lowest level in over two years despite a seventh straight weekly gain in ethanol plant production.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Nov. 14 was at 106.56%. The value of DDG relative to soybean meal was at 47.18%. The cost per unit of protein for DDG was $5.30, compared to the cost per unit of protein for soybean meal at $6.38. The DDG/soymeal price ratio continues to remain above the three-year average.

In its weekly export DDGS update, the U.S. Grains Council noted: “The U.S. DDGS market is higher this week while international prices are slightly lower for spot shipments. Barge CIF (cost, insurance and freight paid by seller) NOLA (New Orleans)prices are $6 to $9 per metric ton (mt) higher while FOB (free on board means buyer pays costs of ocean freight, insurance, unloading, and transportation from originating port) NOLA DDGS are up $3 to $4/mt. U.S. rail rates are $4/mt higher on average with this week’s winter storm complicating logistics.”

USGC also noted that internationally, merchandisers report Indonesia and Vietnam remain active buyers with several shipments secured for December and January. “South Korean buyers have reportedly been looking for product but bids from that country are below firm asking prices. On average, 40-foot containers to Southeast Asia are down $1/mt for December shipment while deferred positions are steady.”

ALL PRICES SUBJECT TO CONFIRMATION CURRENT CURRENT CHANGE
COMPANY STATE 11/14/2019 11/7/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $155 $153 $2
Wet $78 $77 $1
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Subject Dry $150 $150 $0
Wet $77 $77 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $135 $135 $0
Indiana Dry $140 $140 $0
Iowa Dry $135 $135 $0
Michigan Dry $150 $150 $0
Minnesota Dry $135 $135 $0
North Dakota Dry $135 $135 $0
New York Dry $150 $150 $0
South Dakota Dry $125 $125 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $150 $148 $2
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $150 $150 $0
Iowa Dry $137 $137 $0
Michigan Dry $135 $135 $0
Minnesota Dry $135 $135 $0
Missouri Dry $155 $155 $0
Ohio Dry $150 $150 $0
South Dakota Dry $145 $145 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $150 $142 $8
Wet $55 $55 $0
Illinois Dry $153 $150 $3
Nebraska Dry $150 $142 $8
Wet $60 $45 $15
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $145 $140 $5
Indiana Dry $145 $140 $5
Iowa Dry $145 $135 $10
Michigan Dry $140 $145 -$5
Minnesota Dry $135 $135 $0
Nebraska Dry $150 $140 $10
New York Dry $165 $165 $0
North Dakota Dry $135 $135 $0
Ohio Dry $150 $145 $5
South Dakota Dry $135 $135 $0
Wisconsin Dry $135 $135 $0
Valero Energy Corp, San Antonio Texas
Indiana Dry $150 $135 $15
Iowa Dry $135 $145 -$10
Minnesota Dry $135 $140 -$5
Nebraska Dry $145 $135 $10
Ohio Dry $150 $145 $5
South Dakota Dry $140 $135 $5
California Dry $208 $205 $3
Western Milling, Goshen, California (559-302-1074)
California Dry $211 $211 $0
*Prices listed per ton.
Weekly Average $143 $141 $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 11/14/2019 $3.7575 $134.20
Soybean Meal 11/14/2019 $303.10
DDG Weekly Average Spot Price $143.00
DDG Value Relative to: 11/14 11/7
Corn 106.56% 105.21%
Soybean Meal 47.18% 46.13%
Cost Per Unit of Protein:
DDG $5.30 $5.22
Soybean Meal $6.38 $6.43
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 her on Twitter @MaryCKenn

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