DTN Weekly Distillers Grains Update
Lack of Demand Pushes DDG Prices to 10-Month Low
Dried distillers grains prices fell to their lowest point since December 2014 due to lackluster demand from both domestic and export markets.
The DTN weekly DDG spot price average fell another $6 in the past two weeks, from $128 on Sept. 11 to $122 this week. This is the lowest point the average has reached in nearly 10 months, since early December 2014.
Of the 36 Midwestern locations DTN collects spot prices from, 29 locations reported decreases between $3 per ton and $15 per ton in the past two weeks, though most price decreases were in the $5 and $10 per ton range.
Merchandisers told DTN that domestic and foreign buying have been slow in recent weeks. China has been revamping requirements for its DDG importers, who must now register information regarding all shipments of DDG and other specified grains and apply for import permits for shipments; this began Sept. 1. With China being the largest importer of U.S. DDG, that has put a serious dent in exports in recent weeks.
Also hindering exports is that other countries seem to be just buying hand-to-mouth for the time being to see if prices will fall.
Domestic demand is also down. With prices of DDG falling for nine consecutive weeks, some local buyers seem to be returning to the market. And while those domestic end users are taking up a small bit of the slack in export sales, it still is not enough to bump up inclusion rates in livestock rations to a level high enough to keep prices from falling further.
Most local buyers seem to have what they need on hand, as corn and beans seem to be plentiful at present. So, they have no reason to pay more for DDG when they have plenty of protein and feedstuffs on hand.
Some merchandisers predicted this downward trend will continue for at least a few more weeks before a rebound in prices materializes.
The value of DDG relative to corn took a tumble this week as DDG prices continued to fall, dropping from about 105% two weeks ago to about 90% this week. The value of DDG relative to soybean meal this week was about 40%.
The cost per unit of protein for DDG was about $4.88 this week, compared to the cost per unit of protein for soybean meal at $6.37.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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IN THE NEWS
Taiwanese Grain Buyers Visit U.S.
A delegation of grain buyers and other industry members visited Washington, D.C. recently and signed letters of intent to purchase U.S. corn and dried distillers grains with solubles, according to an article by the U.S. Grains Council (http://bit.ly/…).
The trip was part of a biennial visit aimed at strengthening economic ties between Taiwan and the U.S.
Signed during a special ceremony, the letters of intent committed to nearly $3 billion in sales by 2017: 5 million metric tons of U.S. corn and 0.5 million tons of U.S. DDGS valued at $1.23 billion.
In the 2014-2015 marketing year, Taiwan was the sixth-largest buyer of U.S. corn, the third-largest buyer of U.S. barley, and one of the top buyers of U.S. DDGS.
The Council believes the letter of intent is evidence of Taiwan's commitment to maintaining its trade partnership with the U.S.
Council Chairman Alan Tiemann said, "This mission helps maintain an open dialogue between U.S. and Taiwanese government officials, traders and end-users, which is key to maintaining a healthy trade relationship with this top buyer."
Besides meeting with the Council, the Taiwanese delegation also met with U.S. Wheat Associates, the U.S. Soybean Export Council, the National Grain and Feed Association and U.S. government officials, as well as touring U.S. farms and grain elevators in Iowa, Illinois, Kentucky and Minnesota.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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DTN WEEKLY DDG SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 9/25/2015 | 9/18/2015 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $148 | $155 | -$7 | |
| Modified | $65 | $70 | -$5 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $135 | $140 | -$5 | |
| Indiana | Dry | $130 | $138 | -$8 | |
| Iowa | Dry | $120 | $135 | -$15 | |
| Michigan | Dry | $135 | $140 | -$5 | |
| Minnesota | Dry | $115 | $120 | -$5 | |
| North Dakota | Dry | $120 | $125 | -$5 | |
| New York | Dry | $155 | $160 | -$5 | |
| South Dakota | Dry | $115 | $125 | -$10 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $135 | $135 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $130 | $135 | -$5 | |
| Iowa | Dry | $120 | $120 | $0 | |
| Michigan | Dry | $135 | $140 | -$5 | |
| Minnesota | Dry | $115 | $120 | -$5 | |
| Missouri | Dry | $135 | $135 | $0 | |
| Ohio | Dry | $130 | $130 | $0 | |
| South Dakota | Dry | $115 | $120 | -$5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $130 | $130 | $0 | |
| Wet | $50 | $50 | $0 | ||
| Illinois | Dry | $142 | $145 | -$3 | |
| Nebraska | Dry | $130 | $130 | $0 | |
| Wet | $50 | $50 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $130 | $135 | -$5 | |
| Indiana | Dry | $120 | $130 | -$10 | |
| Iowa | Dry | $110 | $115 | -$5 | |
| Michigan | Dry | $120 | $135 | -$15 | |
| Minnesota | Dry | $105 | $115 | -$10 | |
| Nebraska | Dry | $115 | $120 | -$5 | |
| New York | Dry | $145 | $145 | $0 | |
| North Dakota | Dry | $105 | $115 | -$10 | |
| Ohio | Dry | $120 | $130 | -$10 | |
| South Dakota | Dry | $105 | $115 | -$10 | |
| Wisconsin | Dry | $120 | $125 | -$5 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $115 | $120 | -$5 | |
| Iowa | Dry | $110 | $120 | -$10 | |
| Minnesota | Dry | $105 | $115 | -$10 | |
| Nebraska | Dry | $115 | $125 | -$10 | |
| Ohio | Dry | $130 | $130 | $0 | |
| South Dakota | Dry | $105 | $110 | -$5 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $190 | $190 | $0 | |
| *Prices listed per ton. | |||||
| Weekly Average | $122 | $128 | -$6 | ||
| 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 | 9/24/2015 | $3.8150 | $136.25 | |
| Soybean Meal | 9/24/2015 | $302.40 | ||
| DDG Weekly Average Spot Price | $128.00 | |||
| DDG Value Relative to: | 9/27 | 9/18 | 9/11 | |
| Corn | 89.54% | 105.48% | 105.48% | |
| Soybean Meal | 40.34% | 41.39% | 41.39% | |
| Cost Per Unit of Protein: | ||||
| DDG | $4.88 | $5.24 | $5.24 | |
| Soybean Meal | $6.37 | $6.66 | $6.66 | |
| 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 (Sep 18, 2015)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 120.00-130.00 | 55.00-65.00 | 35.00-41.00 |
| Minnesota | 120.00-140.00 | 60.00 | 36.00-40.00 |
| Nebraska | 120.00-149.00 | 65.00-70.00 | 45.00-50.00 |
| South Dakota | 113.00-122.00 | 55.00-68.00 | 39.00-43.00 |
| Wisconsin | 130.00-150.00 | 57.00-75.00 | NQ |
| Eastern Corn Belt | 125.00-150.00 | 46.00-65.00 | NQ |
| Kansas | 135.00-160.00 | NQ | 45.00-60.00 |
| Northern Missouri | 130.00-148.00 | NQ | 40.00-45.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 152.00-165.00 | ||
| Pacific Northwest | 165.00-170.00 | ||
| California | 165.00-180.00 | ||
| Texas Border (metric ton) | 185.00-210.00 | ||
| Lethbridge AB | 140.00 | ||
| Chicago | 135.00-150.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Sep 22, 2015)
Distillers Dry Grains
Rail to California Points 178.00-195.00 dn 2.00-unch
FOB Truck to California Points 182.00-195.00 up 2.00-unch
PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Sep 22, 2015)
Offers for Distillers Dried Grains delivered in September by rail to feed mills in the Pacific Northwest were steady to 3.00 lower from 173.00-180.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were steady to 3.00 lower from 191.00-195.00.
*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
May 2015 - July 2015
Sep 1, 2015
Highlights:
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 2.00 million tons during July 2015, up 1 percent from June 2015 and up 6 percent from May 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.14 million tons in July 2015, up slightly from June 2015 but down 7 percent from May 2015.
Wet mill corn gluten feed production was 333.8 thousand tons during July 2015, up 4 percent from June 2015 but down 5 percent from May 2015. Wet corn gluten feed 40 to 60 percent moisture was 315.1 thousand tons in July 2015, up 3 percent from June 2015 but down 3 percent from May 2015.
| Co-products and Products | May 2015 | Jun 2015 | Jul 2015 |
| Dry Mill | tons | ||
| Condensed distillers solubles (CDS-syrup) | 148,637 | 145,244 | 149,927 |
| Corn oil | 118,281 | 120,582 | 125,497 |
| Distillers dried grains (DDG) | 418,448 | 407,259 | 450,829 |
| Distillers dried grains with solubles (DDGS) | 1,892,983 | 1,976,508 | 2,000,851 |
| Modified distillers wet grains (DWG) <65% moisture | 1,228,598 | 1,136,491 | 1,137,600 |
| Modified distillers wet grains (DWG) 40-64% moisture | 417,888 | 367,092 | 350,460 |
| Wet Mill | |||
| Corn germ meal | 69,135 | 63,188 | 68,528 |
| Corn gluten feed | 350,141 | 321,209 | 333,828 |
| Corn gluten meal | 97,295 | 92,237 | 97,130 |
| Corn oil | 53,208 | 51,281 | 53,364 |
| Wet corn gluten feed 40-60% moisture | 325,292 | 306,354 | 315,090 |
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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.) |
| 8/28/15 | 93683 | 9685 | 1793 | 105161 | 5577115 |
| 9/04/15 | 94671 | 9787 | 1812 | 106270 | 5635945 |
| 9/11/15 | 94967 | 9818 | 1818 | 106603 | 5653594 |
| 9/18/15 | 92695 | 9583 | 1775 | 104052 | 5518284 |
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
*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.
(AG)
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