DDG Weekly Update

By Mary Kennedy
DTN Basis Analyst

OMAHA (DTN) -- 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

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.
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
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.


Todd's Take
Traders anticipate a big soybean harvest from Brazil and U.S. exports are in the dumps. Why are FOB soybean prices at their highest level in nearly a year?
The Tax Cuts and Jobs Act significantly changed how agribusiness looks at depreciation. Bonus deprecation was one of the few items in the new law that applies retroactively. Under the new law, annual depreciation limits on passenger autos also increase significantly.
Weighing Possible Huge Merger
If Archer Daniels Midland takes over Bunge Ltd., the resulting company would be the largest grain handler in the United States.
NGFA Calls on Congress to Act
The president of the National Grain and Feed Association expressed disappointment that Congress so far hasn't been able to change the new tax provision that is disrupting the grain trade.
Farmland Prices Remain Strong
Recent land sales in Iowa and a new Kansas City Federal Reserve bank report show farmland values remain strong despite lower grain prices.
DDG Weekly Update
The DTN average dried distillers grains price for the week ended Feb. 15 was stronger at $148 per ton.
Trading for Water Quality
Working through Kansas State University Extension, Wichita has developed programs over the last several years to reduce atrazine and sediment loads in the Little Arkansas River watershed through incentives for best-management practices.
Crop Tech Corner
In this week's Crop Tech Corner, Minnesota grad students tell Congress that the expensive regulatory process is stifling innovation in GM fuel and fiber crops.
Dicamba Under Scrutiny
The environmental and farmer groups behind the lawsuit claim Monsanto inappropriately influenced EPA's registration of XtendiMax.