DTN Weekly Distillers Grains Update
DDG Prices Rise for First Time in Almost Five Months
Prices of dried distillers grains have finally turned the corner, rising an average of $5 per ton in the past week after an 18-week downward trend.
The DTN weekly spot price average had fallen a total of $138 per ton since the first week of April, due largely to problems with trade to China and plentiful supplies. After a 19-week freefall, the average last week fell to $101 per ton, the lowest price the market has seen in more than four years, since the first week of April 2014.
After seemingly finding a bottom, the majority of merchandisers DTN contacts weekly for prices reported increasing prices in the past week, pushing up the weekly average $5 per ton this week, from $101 per ton last week to $106 per ton this week: the first increase in 19 weeks.
Of the 37 Midwestern locations DTN collects spot prices from, 21 locations reported their spot prices had increased between $5 and $20 per ton since last week. Prices at 11 locations remained unchanged, while only four reported price decreases of $5 per ton. One location had no offers this week.
Some merchandisers told DTN this week that the price increases were due to ethanol plants finally getting inventory under control and not having to dump product at lower prices because of a lack of storage. Also, the Mississippi River opening back up and barges moving once again helped firm prices.
Some merchandisers seemed to feel the market had finally bottomed out, sending prices finally on the rebound to a more comfortable level. Chicago and Kansas City were trading up from recent lows, giving some support to prices as well.
Others attributed the rebound in prices to estimates that the corn crop this year may be slightly less than the record-setting harvest predicted earlier, due to too much moisture in some areas and too much heat in others.
With the price increases, the value of DDG relative to corn this week rose slightly, from about 79% last week to about 82% this week. Those values, however, are still comfortably low after the values that rose to 120%-140% earlier this year to year-and-a-half, pricing DDG out of many livestock rations. With the price declines in recent months, DDG is finally finding its way into many rations.
The value of DDG relative to soybean meal fell this week, from about 26% last week to about 23% this week.
The cost per unit of protein for DDG was $4.24 this week, compared to the cost per unit of protein for soybean meal at $9.77.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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IN THE NEWS
Discussion at USGC Meeting Centers on China
The effect of China's new certification requirements for dried distillers grains with solubles on trade dominated discussions at the U.S. Grains Council's annual board of delegates meeting recently in Omaha, according to an article on the council's website (http://bit.ly/…).
China announced it will now require governmental certification on all DDGS shipments guaranteeing they do not contain the MIR 162 GMO trait. The announcement has cut off new sales of DDGs to China since such certification does not exist.
China has been dragging its feet on approving the trait, although it has been approved in the U.S. and most major markets for some time.
Former USGC Chairman Julius Schaaf wrote a letter to Secretary of Agriculture Tom Vilsack asking for assistance in resolving the issue with China. Also, USGC staff, consultants and state organization partners have been communicating with USDA officials, as well as the office of the U.S. Trade Representative, to find a way to solve the trade obstacles. The council is also maintaining ongoing programs aimed at building the market in China, including bringing U.S. producers to China to building relationships with think-tanks, industry, academic and government, as well as hosting trade teams of Chinese industry and government officials vital in developing China's food security policies and biotech approvals.
The council is calling for China to immediately approve the MIR 162 trait and to find long-term solutions to China's restrictions on biotech imports.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 8/15/2014 | 8/8/2014 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $115 | $120 | -$5 | |
| Modified | $60 | $63 | -$3 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $120 | $120 | $0 | |
| Indiana | Dry | $120 | $120 | $0 | |
| Iowa | Dry | $110 | $105 | $5 | |
| Michigan | Dry | $130 | $125 | $5 | |
| Minnesota | Dry | $100 | $95 | $5 | |
| North Dakota | Dry | $95 | $90 | $5 | |
| New York | Dry | $120 | $130 | -$10 | |
| South Dakota | Dry | $95 | $95 | $0 | |
| Hawkeye Gold, IA (515-663-6413) | |||||
| Iowa | Dry | NO | NO | ||
| Modified | NO | NO | |||
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $105 | $105 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $100 | $95 | $5 | |
| Iowa | Dry | $100 | $100 | $0 | |
| Michigan | Dry | $105 | $105 | $0 | |
| Minnesota | Dry | $100 | $100 | $0 | |
| Missouri | Dry | $120 | $120 | $0 | |
| Ohio | Dry | $95 | $95 | $0 | |
| South Dakota | Dry | $95 | $100 | -$5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $105 | $110 | -$5 | |
| Wet | $35 | $35 | $0 | ||
| Illinois | Dry | $125 | $125 | $0 | |
| Nebraska | Dry | $105 | $110 | -$5 | |
| Wet | $35 | $35 | $0 | ||
| Wisconsin | Dry | NO | NO | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $120 | $100 | $20 | |
| Indiana | Dry | $120 | $105 | $15 | |
| Iowa | Dry | $105 | $90 | $15 | |
| Michigan | Dry | $120 | $105 | $15 | |
| Minnesota | Dry | $100 | $90 | $10 | |
| Nebraska | Dry | $100 | $90 | $10 | |
| New York | Dry | $125 | $125 | $0 | |
| North Dakota | Dry | $95 | $85 | $10 | |
| Ohio | Dry | $105 | $90 | $15 | |
| South Dakota | Dry | $95 | $85 | $10 | |
| Wisconsin | Dry | $100 | $90 | $10 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $110 | $100 | $10 | |
| Iowa | Dry | $100 | $95 | $5 | |
| Minnesota | Dry | $95 | $90 | $5 | |
| Nebraska | Dry | $100 | $95 | $5 | |
| Ohio | Dry | $110 | $100 | $10 | |
| South Dakota | Dry | $95 | $90 | $5 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $175 | $175 | $0 | |
| *Prices listed per ton. | |||||
| Weekly Average | $106 | $101 | $5 | ||
| 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. | |||||
*The spot prices gathered by DTN are only intended to reflect general market trends and may vary. Please contact individual plant or merchandiser for exact prices.
If you would be willing to take a weekly phone call and have your distiller grains spot prices listed in this feature, please contact Cheryl Anderson at (308) 224-1527 or (800) 369-7875, or e-mail cheryl.anderson@dtn.com.
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| VALUE OF DDG VS. CORN & SOYBEAN MEAL | ||||
| Settlement Price: | Quote Date | Bushel | Short Ton | |
| Corn | 8/14/2014 | $3.6200 | $129.29 | |
| Soybean Meal | 8/14/2014 | $464.20 | ||
| DDG Weekly Average Spot Price | $106.00 | |||
| DDG Value Relative to: | 8/15 | 8/8 | 8/1 | |
| Corn | 81.99% | 78.66% | 82.35% | |
| Soybean Meal | 22.83% | 25.86% | 26.83% | |
| Cost Per Unit of Protein: | ||||
| DDG | $4.24 | $4.04 | $4.20 | |
| Soybean Meal | $9.77 | $8.22 | $8.24 | |
| Notes: | ||||
| Corn and soybean prices taken 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 25. | ||||
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USDA MARKET NEWS/DISTILLER GRAINS PRICES
USDA WEEKLY DISTILLERS GRAINS SUMMARY (Aug 8, 2014)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 90.00-120.00 | 40.00-60.00 | 20.00-32.00 |
| Minnesota | 90.00-105.00 | 50.00 | 45.00 |
| Nebraska | 90.00-105.00 | 45.00-52.00 | 35.00-40.50 |
| South Dakota | 85.00-96.50 | 45.00-54.00 | 28.00-30.00 |
| Wisconsin | 85.00-120.00 | 38.00-60.00 | NQ |
| Eastern Corn Belt | 90.00-135.00 | 64.00-75.00 | NQ |
| Kansas | 115.00-125.00 | NQ | 40.00-55.00 |
| Northern Missouri | 115.00-135.00 | NQ | 39.00-40.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 143.00-160.00 | ||
| Pacific Northwest | 144.00-153.00 | ||
| California | 150.00-160.00 | ||
| Texas Border (metric ton) | 180.00-205.00 | ||
| Lethbridge AB | NQ | ||
| Chicago | 95.00-120.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Aug 12, 2014)
Distillers Dry Grains
Rail to California Points 155.00-168.00 unch-up 10.00
Truck to California Points 163.00-165.00 unch
PACIFIC NORTHWEST WEEKLY FEED (Tue Aug 12, 2014)
Offers for Distillers Dried Grains delivered in August by rail to feed mills in the Pacific Northwest were 2.00 to 5.00 higher, from 163.00-172.00. Offers for distillers dried grains trans-loaded onto trucks and delivered during August to Willamette Valley dairies were 2.00 to 5.00 higher, from 181.00-187.00.
*All prices quoted per ton unless otherwise noted.
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RFA WEEKLY U.S. LIVESTOCK FEED PRODUCTION
| CO-PRODUCT OUTPUTS (metric tons) | |||||
| Week Ending | Distillers Grains | Corn Gluten Feed | Corn Gluten Meal | Total Feed | Corn Oil (lbs.) |
| 7/18/14 | 95416 | 9797 | 1814 | 107027 | 4994763 |
| 7/25/14 | 94918 | 9746 | 1805 | 106469 | 4968721 |
| 8/01/14 | 89137 | 9215 | 1706 | 100058 | 5306495 |
| 8/08/14 | 92003 | 9511 | 1761 | 103275 | 5477103 |
*Information from 2010 Weekly U.S. Fuel Ethanol/Livestock Feed Production report (http://www.ethanolrfa.org/…)
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P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
DDG LINKS/RESOURCES
Organizations
*Distillers Grains Technology Council
http://www.distillersgrains.org
*National Corn Growers Association Corn Distillers Grains Brochure
*Iowa Corn
Nebraska Corn Board
*Renewable Fuels Association - Ethanol Co-Products
*American Coalition for Ethanol
*U.S. Grains Council
*South Dakota Corn Utilization Council
http://www.drieddistillersgrains.com
Government Sites
*Iowa Department of Agriculture and Land Stewardship/Office of Renewable Fuels & Coproducts
http://www.distillersgrains.com
University Sites
*University of Minnesota - Distillers Grains By-Products in Livestock
and Poultry Feed
*University of Illinois - Illinois Livestock Integrated Focus Team Distillers Grains site
http://ilift.traill.uiuc.edu/…
*University of Nebraska - Beef Cattle Production By-Product Feeds site
*University of Nebraska Extension
*Iowa Beef Center - Iowa State University
http://www.iowabeefcenter.org/…
*University of Missouri - Byproducts Resource Page
*South Dakota State University - Dairy Science Department - Dairy cattle research
(select "Distillers Grains" from the topic menu)
*Purdue University Renewable Energy Web Site
http://www.extension.purdue.edu/…
(select "Biofuels Co-Products from the menu)
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DDG CONFERENCES
*Distillers Grains Technology Council Inc.'s 16th Annual Distillers Grains Symposium
The Distillers Grains Technology Council will hold its 18th Annual Distillers Grains Symposium on May 14-15, 2014, at the Omni Mandalay at Las Colinas, Dallas, Texas. For information, contact the DGTC office at (502) 852-1575 or (800) 759-3448, or check the DGTC website (http://www.distillersgrains.org).
(If you are sponsoring or know of any event, conference or workshop on distillers grains, and would like to list it in the DTN Weekly Distillers Grains Update, please contact Cheryl Anderson (see contact info below).
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We welcome any comments/suggestions for this feature. Please let us know what information is valuable to you that we could include in the Distillers Grains Weekly Update. Please feel free to contact Cheryl Anderson at 364-2183-1527, or e-mail cheryl.anderson@dtn.com.
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