DTN Weekly Distillers Grains Update
DDG Prices Remain Steady Amid a Disinterested Market
Lackluster interest in purchasing dried distillers grains caused prices to remain fairly steady in the past week.
The DTN weekly DDG spot price average remained unchanged this week at $185 per ton. This is the first week the average has not followed its slow upward trend since late February. Still, prices have remained between $178 and $185 per ton for the past 13 weeks.
Of the 36 Midwestern locations DTN collects spot prices from, 14 locations reported their spot prices remained unchanged since last week. Spot prices at 12 locations decreased between $3 and $10 per ton since last week, while nine locations reported their spot prices increased between $3 and $10 per ton in the past week. One location had no offers this week.
Merchandisers told DTN there is currently not a lot of local interest in purchasing DDG this week. Interest in deferred months declined, bringing interest in the nearby along for the downhill ride. One merchandiser described the situation as "a disinterested market."
Some shortness in product was reported this week, due partly to ethanol plants taking their scheduled spring maintenance shut-downs, which will likely continue through April and May. This is leaving merchandisers with having to work out logistics from week to week, with not a lot of bullish indicators for the future.
Due to the tight supplies, many merchandisers reported plants being sold out, with not a lot to sell. One commented that when he does have something to sell, buyers snatch it right up.
It was also reported this week that prices may be adjusted a bit higher, since rail demand is a bit lower. In any case, prices were firmer in some markets and lower in others, with no clear trend in either direction.
The value of DDG relative to corn this week remained fairly steady, rising only about 1%, from about 137% last week to about 138% this week. The value of DDG relative to soybean meal remained steady at about 59%.
The cost per unit of protein for DDG was about $7.40 this week, compared to the cost per unit of soybean meal at about $6.58.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com
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IN THE NEWS
Grains Council Works to Open Cuban Markets
The U.S. Grains Council recently sent a delegation to Cuba to examine the opportunities and challenges for U.S. coarse grains and coproduct exports after the country's markets are opened, according to an article by the council (http://bit.ly/…).
The council plans to hold ongoing discussions with Cuban officials to help them develop their livestock sectors. Kurt Shultz, the council's director of global strategies, said through these discussions, the council has an opportunity to better understand the sector's priorities and opportunities for expansion.
The council's team met with such agencies as the Cuban Ministry of Trade, the Ministry of Agriculture, and Alimport -- the Cuban importing agency.
The team reported that the Cuban government expressed a willingness to look beyond the current trade embargo to a time when the U.S. and Cuba can resume trade once again, but with the realization that there will be many hurdles to overcome before the embargo is lifted.
During the visit, Cuban officials were curious about the council's work in such countries as Mexico and Morocco, particularly in how the council partnered with local producers to help develop livestock sectors.
Currently, Cuba imports approximately 900,000 metric tons of corn annually, but has been purchasing most of their needs from Argentina and Brazil, which are much farther away. The embargo and lack of access to credit have greatly hampered Cuba's ability to import grains and coproducts from the U.S.
According to USDA's Foreign Agricultural Service, Cuba has not imported any U.S. distillers grains since 2013, when it purchased only about 50,000 metric tons at a value of about $15 million.
The council plans to use the information gathered on the trip to develop strategies for the U.S. after the embargo is lifted, as well as to help Cuba expand livestock production to better meet the needs of its population.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com
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DTN WEEKLY DDG SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 4/17/2015 | 4/10/2015 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $190 | $190 | $0 | |
| Modified | $90 | $90 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $200 | $195 | $5 | |
| Indiana | Dry | $195 | $195 | $0 | |
| Iowa | Dry | $183 | $190 | -$7 | |
| Michigan | Dry | NO | NO | ||
| Minnesota | Dry | $180 | $180 | $0 | |
| North Dakota | Dry | $180 | $175 | $5 | |
| New York | Dry | $200 | $190 | $10 | |
| South Dakota | Dry | $183 | $180 | $3 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $180 | $180 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $195 | $190 | $5 | |
| Iowa | Dry | $190 | $180 | $10 | |
| Michigan | Dry | $190 | $185 | $5 | |
| Minnesota | Dry | $185 | $175 | $10 | |
| Missouri | Dry | $200 | $200 | $0 | |
| Ohio | Dry | $190 | $185 | $5 | |
| South Dakota | Dry | $185 | $175 | $10 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $190 | $190 | $0 | |
| Wet | $75 | $75 | $0 | ||
| Illinois | Dry | $205 | $205 | $0 | |
| Nebraska | Dry | $190 | $190 | $0 | |
| Wet | $75 | $75 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $190 | $195 | -$5 | |
| Indiana | Dry | $185 | $190 | -$5 | |
| Iowa | Dry | $180 | $180 | $0 | |
| Michigan | Dry | $190 | $190 | $0 | |
| Minnesota | Dry | $175 | $180 | -$5 | |
| Nebraska | Dry | $175 | $175 | $0 | |
| New York | Dry | $185 | $195 | -$10 | |
| North Dakota | Dry | $185 | $190 | -$5 | |
| Ohio | Dry | $190 | $190 | $0 | |
| South Dakota | Dry | $180 | $180 | $0 | |
| Wisconsin | Dry | $185 | $190 | -$5 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $180 | $185 | -$5 | |
| Iowa | Dry | $160 | $170 | -$10 | |
| Minnesota | Dry | $170 | $175 | -$5 | |
| Nebraska | Dry | $175 | $180 | -$5 | |
| Ohio | Dry | $190 | $195 | -$5 | |
| South Dakota | Dry | $162 | $165 | -$3 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $245 | $247 | -$2 | |
| *Prices listed per ton. | |||||
| Weekly Average | $185 | $185 | $0 | ||
| 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 | 4/16/2015 | $3.7625 | $134.38 | |
| Soybean Meal | 4/16/2015 | $312.40 | ||
| DDG Weekly Average Spot Price | $185.00 | |||
| DDG Value Relative to: | 4/17 | 4/10 | 4/3 | |
| Corn | 137.67% | 137.04% | 131.85% | |
| Soybean Meal | 59.22% | 59.28% | 55.61% | |
| Cost Per Unit of Protein: | ||||
| DDG | $7.40 | $7.40 | $7.28 | |
| Soybean Meal | $6.58 | $6.57 | $6.89 | |
| 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 (Apr 10, 2015)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 170.00-190.00 | 78.00-90.00 | 47.00-55.00 |
| Minnesota | 165.00-185.00 | 75.00 | 52.00-65.00 |
| Nebraska | 165.00-189.50 | 70.00-89.50 | 50.00-67.00 |
| South Dakota | 160.00-175.00 | 75.00-85.50 | 56.00-62.00 |
| Wisconsin | 180.00-190.00 | 82.00-90.00 | NQ |
| Eastern Corn Belt | 180.00-205.00 | 77.00-85.00 | NQ |
| Kansas | 185.00-195.00 | NQ | 60.00-72.00 |
| Northern Missouri | 190.00-197.00 | NQ | 55.00-63.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 227.00-236.00 | ||
| Pacific Northwest | 232.00-242.00 | ||
| California | 235.00-245.00 | ||
| Texas Border (metric ton) | 260.00-275.00 | ||
| Lethbridge AB | 200.00 | ||
| Chicago | 202.00-215.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Apr 14, 2015)
Distillers Dry Grains
Rail to California Points 247.00-249.00 dn 2.00-unch
FOB Truck to California Points 243.00-252.00 dn 1.00-up 2.00
PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Apr 14, 2015)
Distillers Dried Grains: Offers for Distillers Dried Grains delivered in September by rail to feed mills in the Pacific Northwest were steady to 2.00 higher from 236.00-242.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were also steady to 2.00 higher from 254.00-257.00.
*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
Apr 1, 2015
Highlights:
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.65 million tons during February 2015 down 11% from January 2015 and down 14% from December 2014. Distillers wet grains (DWG) 65% or more moisture was 1.14 million tons in February 2015 down 15% from January 2015 and down 19% from December 2014.
Wet mill corn gluten feed production was 284.0 thousand tons during February 2015 down 12% from January 2015 and down 14% from December 2014. Wet corn gluten feed 40% to 60% moisture was 274.8 thousand tons in February 2015 down 12% from January 2015 and down 19% from December 2014.
| Co-products and Products | Dec 2014 | Jan 2014 | Feb 2015 |
| Dry Mill | |||
| Condensed distillers solubles (CDS-syrup) | 172,082 | 162,626 | 128,057 |
| Corn oil | 97,380 | 105,356 | 96,347 |
| Distillers dried grains (DDG) | 448,551 | 438,936 | 405,025 |
| Distillers dried grains with solubles (DDGS) | 1,919,823 | 1,862,550 | 1,649,534 |
| Modified distillers wet grains (DWG) <65% moisture | 1,411,411 | 1,341,938 | 1,144,177 |
| Modified distillers wet grains (DWG) 40-64% moisture | 503,258 | 480,134 | 421,666 |
| Wet Mill | |||
| Corn germ meal | 75,031 | 71,492 | 48,546 |
| Corn gluten feed | 329,431 | 321,768 | 283,990 |
| Corn gluten meal | 94,777 | 90,617 | 80,855 |
| Corn oil | 44,551 | 41,961 | 41,020 |
| Wet corn gluten feed 40-60% moisture | 338,077 | 313,400 | 274,763 |
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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.) |
| 3/20/15 | 94819 | 9736 | 1803 | 106358 | 5606530 |
| 3/27/15 | 94719 | 9726 | 1801 | 106246 | 5600647 |
| 4/03/15 | 93127 | 9562 | 1771 | 104460 | 5506518 |
| 4/10/15 | 91933 | 9440 | 1748 | 103121 | 5435922 |
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
*Distillers Grains Technology Council Inc.'s 19th Annual Distillers Grains Symposium
The Distillers Grains Technology Council will hold its 19th Annual Distillers Grains Symposium on May 13-14, 2015, at the Sheraton Crown Center at Kansas City, Missouri. For information, contact the DGTC office at (515) 294-4019 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 (402) 364-2183, or e-mail cheryl.anderson@dtn.com.
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