Distiller’s Grains: Under Pressure as Feeders Look for Cheaper Prices – DTN

Of the 40 locations DTN contacted that showed offers for domestic distillers dried grains (DDG) for the week ended June 4, posted offers were steady to lower and averaged $138 per ton, down $3 versus the prior week.

The cash corn price versus one week ago hasn’t changed much, but DDG prices remain under pressure as feeders are still looking for cheaper prices as supplies grow. Sellers may have to comply and make spot prices more attractive to keep product moving. Other corn byproduct products have been moving lower as well, adding competition to DDG.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended June 4 was 117.45%. The value of DDG relative to soybean meal was 47.62%. The cost per unit of protein for DDG was $5.11, compared to the cost per unit of protein for soybean meal at $6.10.

The U.S. Census Bureau reported April DDGS exports at 765,635 metric tons, the lowest monthly total since October, although 2020 year-to-date exports are still ahead of last year. Ethanol exports during April totaled 99.3 million gallons which were down 29% from last month and down 33% from last year.

Wednesday’s EIA ethanol report showed for the week ended May 29 that ethanol inventory in the U.S. was drawn down for a sixth consecutive week and at a 21-week low and down 19% from the record high reached on April 17. Plant production once again outpaced the gain in blending activity for the week, up 41,000 barrels per day (bpd) to a 765,000 bpd nine-week high. This is the fifth consecutive week with higher output after falling to a more than 10-year low at 537,000 bpd. During the four-week period ended May 29, plant production average was 34.5% below one year ago.

NOTE: All prices listed below can change at any time and are subject to confirmation from seller.

ALL PRICES SUBJECT TO CONFIRMATION CURRENT PREVIOUS CHANGE
COMPANY STATE 6/4/2020 5/28/2020
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $140 $140 $0
Wet $70 $70 $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
Missouri Dry $140 $140 $0
Wet $75 $75 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $135 $155 -$20
Indiana Dry $135 $145 -$10
Iowa Dry $132 $130 $2
Michigan Dry $145 $150 -$5
Minnesota Dry $125 $130 -$5
North Dakota Dry $130 $130 $0
New York Dry $170 $195 -$25
South Dakota Dry $120 $125 -$5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas APRIL Dry $130 $130 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $145 $150 -$5
Iowa Dry $137 $142 -$5
Michigan Dry $150 $155 -$5
Minnesota Dry $140 $144 -$4
Missouri Dry $155 $155 $0
Ohio Dry $145 $150 -$5
South Dakota Dry $145 $150 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $130 $0
Wet $40 $0
Illinois MARCH Dry $145 $0
Nebraska Dry $130 $0
Wet $40 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $145 $145 $0
Indiana Dry $150 $150 $0
Iowa Dry $130 $130 $0
Michigan Dry $145 $145 $0
Minnesota Dry $130 $130 $0
Nebraska Dry $115 $115 $0
New York Dry $165 $165 $0
North Dakota Dry $120 $120 $0
Ohio Dry $150 $150 $0
South Dakota Dry $110 $110 $0
Wisconsin Dry $140 $140 $0
Valero Energy Corp, San Antonio Texas
Indiana Dry $165 $165 $0
Iowa Dry $0 $0 $0
Minnesota Dry $0 $0 $0
Nebraska Dry $0 $0 $0
Ohio Dry $145 $155 -$10
South Dakota Dry $0 $0 $0
California Dry $0 $0 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $212 $205 $7
*Prices listed per ton.
Weekly Average $138 $141 -$3
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 6/4/2020 $3.2900 $117.50
Soybean Meal 6/4/2020 $289.80
DDG Weekly Average Spot Price $138.00
DDG Value Relative to: 6/4 5/28
Corn 117.45% 120.55%
Soybean Meal 47.62% 49.59%
Cost Per Unit of Protein:
DDG $5.11 $5.22
Soybean Meal $6.10 $5.99
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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