DTN Weekly Distillers Grains Update
Bearish Crop Report Weakens DDG Prices
DAVENPORT, Neb. (DTN) -- A bearish USDA Crop Production report on Wednesday caused prices of dried distillers grains to fall this week.
The DTN weekly DDG spot price average fell $2 per ton in the past week, from $146 per ton last week to $144 per ton this week. This is the third consecutive week the average has fallen, although the average has hovered between $144 and $148 per ton since mid-July.
Of the 36 Midwestern locations DTN collects spot prices from, 18 locations reported that their spot prices had decreased between $2 and $10 per ton in the past week, although most price decreases were $5 per ton. Prices at 17 locations remained unchanged since last week, while only one price increase of $5 per ton was reported.
Merchandisers told DTN that expectations for 2015 crops are now larger than previously thought. That coupled with more ending stocks, put pressure on commodities in general, but especially on prices of DDG.
Prices of competing ingredients such as corn and soybean meal also fell this week, with DDG reacting to the downturn in the corn board.
Lackluster purchasing also caused the price drop as buying took a softer tone with end users more interested in watching the weather and the corn board than buying. Some in the industry expect demand to be slow all month as buyers wait to see where corn prices are headed.
Other factors in the downturn in prices are a lack of export demand and plentiful inventories.
The value of DDG relative to corn this week remained high, but steady at about 111%. The value of DDG relative to soybean meal also held steady at about 42%.
The cost per unit of protein for DDG was about $5.76 this week, compared to the cost per unit of protein for soybean meal at $7.24.
Cheryl Anderson can be reached at Cheryl.anderson@dtn.com.
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IN THE NEWS
China to Require DDG Importers to Register Purchases
China recently announced it is changing requirements for importers of dried distillers grains, barley, cassava and sorghum, according to an article by Agrimoney.com (http://bit.ly/…).
Beginning Sept. 1, Chinese importers will need to register purchases of DDG. This is causing some anxiety in grains markets.
Some in the industry think China's latest sanction is its attempt to turn its domestic end users away from DDG and corn from foreign countries like the U.S. and back to its glut of domestic corn. Many times, Chinese importers are able to import U.S. DDG and other grains at a lower cost than buying from China's domestic supplies.
Some speculate China may further restrict sorghum imports, similar to the country's clampdown on DDG containing the MIR 162 biotech trait in corn last year.
Cheryl Anderson can be reached at Cheryl.anderson@dtn.com
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DTN WEEKLY DDG SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 8/14/2015 | 8/7/2015 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $160 | $160 | $0 | |
| Modified | $70 | $70 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $148 | $150 | -$2 | |
| Indiana | Dry | $150 | $155 | -$5 | |
| Iowa | Dry | $145 | $150 | -$5 | |
| Michigan | Dry | $150 | $155 | -$5 | |
| Minnesota | Dry | $135 | $135 | $0 | |
| North Dakota | Dry | $130 | $135 | -$5 | |
| New York | Dry | $155 | $165 | -$10 | |
| South Dakota | Dry | $130 | $135 | -$5 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $150 | $150 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $145 | $145 | $0 | |
| Iowa | Dry | $145 | $145 | $0 | |
| Michigan | Dry | $148 | $148 | $0 | |
| Minnesota | Dry | $145 | $150 | -$5 | |
| Missouri | Dry | $160 | $160 | $0 | |
| Ohio | Dry | $150 | $145 | $5 | |
| South Dakota | Dry | $135 | $140 | -$5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $140 | $140 | $0 | |
| Wet | $55 | $55 | $0 | ||
| Illinois | Dry | $168 | $168 | $0 | |
| Nebraska | Dry | $140 | $140 | $0 | |
| Wet | $55 | $55 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $160 | $160 | $0 | |
| Indiana | Dry | $150 | $155 | -$5 | |
| Iowa | Dry | $140 | $140 | $0 | |
| Michigan | Dry | $150 | $150 | $0 | |
| Minnesota | Dry | $135 | $140 | -$5 | |
| Nebraska | Dry | $135 | $140 | -$5 | |
| New York | Dry | $160 | $160 | $0 | |
| North Dakota | Dry | $135 | $135 | $0 | |
| Ohio | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $130 | $130 | $0 | |
| Wisconsin | Dry | $145 | $150 | -$5 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $140 | $150 | -$10 | |
| Iowa | Dry | $140 | $145 | -$5 | |
| Minnesota | Dry | $140 | $145 | -$5 | |
| Nebraska | Dry | $135 | $140 | -$5 | |
| Ohio | Dry | $150 | $155 | -$5 | |
| South Dakota | Dry | $120 | $125 | -$5 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $195 | $203 | -$8 | |
| *Prices listed per ton. | |||||
| Weekly Average | $144 | $146 | -$2 | ||
*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 | 8/13/2015 | $3.6375 | $129.91 | |
| Soybean Meal | 8/13/2015 | $344.10 | ||
| DDG Weekly Average Spot Price | $144.00 | |||
| DDG Value Relative to: | 8/14 | 8/7 | 7/31 | |
| Corn | 110.85% | 110.56% | 109.52% | |
| Soybean Meal | 41.85% | 41.70% | 40.88% | |
| Cost Per Unit of Protein: | ||||
| DDG | $5.76 | $5.84 | $5.84 | |
| Soybean Meal | $7.24 | $7.37 | $7.52 | |
| 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 7, 2015)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 135.00-160.00 | 60.00-70.00 | 38.00-50.00 |
| Minnesota | 135.00-150.00 | 55.00 | 40.00-45.00 |
| Nebraska | 125.00-146.00 | 60.00-76.00 | 38.00-46.00 |
| South Dakota | 128.00-140.50 | 63.00-67.00 | 43.00-48.00 |
| Wisconsin | 145.00-160.00 | 65.00-70.00 | NQ |
| Eastern Corn Belt | 140.00-170.00 | 43.00-70.00 | NQ |
| Kansas | 145.00-169.00 | NQ | 45.00-60.00 |
| Northern Missouri | 150.00-160.00 | NQ | 41.00-47.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 180.00-195.00 | ||
| Pacific Northwest | 190.00-197.00 | ||
| California | 190.00-198.00 | ||
| Texas Border (metric ton) | 210.00-230.00 | ||
| Lethbridge AB | 165.00 | ||
| Chicago | 162.00-175.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Aug 11, 2015)
Distillers Dry Grains
Rail to California Points 190.00-204.00 unch-up 4.00
FOB Truck to California Points 200.00-210.00 unch
PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Aug 11, 2015)
Offers for Distillers Dried Grains delivered in September by rail to feed mills in the Pacific Northwest were steady to 4.00 lower from 193.00-210.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were also steady to 4.00 lower from 211.00-225.00.
*All prices quoted per ton unless otherwise noted.
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NASS/USDA MONTHLY CO-PRODUCTS PRODUCTION
Dry and Wet Mill, Co-products and Products Produced - United States
April 2015 - June 2015
Aug 3, 2015
Highlights:
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.98 million tons during June 2015, up 4 percent from May 2015 and up 17 percent from April 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.14 million tons in June 2015, down 7 percent from May 2015 and down 5 percent from April 2015.
Wet mill corn gluten feed production was 324.9 thousand tons during June 2015, down 7 percent from May 2015 but up 4 percent from April 2015. Wet corn gluten feed 40 to 60 percent moisture was 306.4 thousand tons in June 2015, down 6 percent from May 2015 and down 2 percent from April 2015.
| Co-products and Products | Apr 2015 | May 2015 | Jun 2015 |
| Dry Mill | tons | ||
| Condensed distillers solubles (CDS-syrup) | 139,930 | 148,637 | 145,244 |
| Corn oil | 102,610 | 119,281 | 120,582 |
| Distillers dried grains (DDG) | 411,664 | 418,448 | 407,259 |
| Distillers dried grains with solubles (DDGS) | 1,690,903 | 1,892,983 | 1,976,508 |
| Modified distillers wet grains (DWG) <65% moisture | 1,200,282 | 1,228,598 | 1,136,491 |
| Modified distillers wet grains (DWG) 40-64% moisture | 389,889 | 417,888 | 367,092 |
| Wet Mill | |||
| Corn germ meal | 61,922 | 69,135 | 62,917 |
| Corn gluten feed | 313,889 | 350,141 | 324,905 |
| Corn gluten meal | 89,356 | 53,208 | 51,281 |
| Corn oil | 42,998 | 53,208 | 51,281 |
| Wet corn gluten feed 40-60% moisture | 314,047 | 325,292 | 306,354 |
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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.) |
| 7/17/15 | 96809 | 9940 | 1841 | 108590 | 5724191 |
| 7/24/15 | 95363 | 9859 | 1826 | 107047 | 5677126 |
| 7/31/15 | 94967 | 9818 | 1818 | 106603 | 5653594 |
| 8/07/15 | 95363 | 9859 | 1826 | 107047 | 5677126 |
*Information from 2010 Weekly U.S. Fuel Ethanol/Livestock Feed Production report (http://www.ethanolrfa.org/…)
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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
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 (402) 364-2183, or e-mail cheryl.anderson@dtn.com.
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