DTN Weekly Distillers Grains Update
DDG Price Freefall Begins to Slow Down
The long, downward fall in prices of dried distillers grains may indeed be ending, or at least slowing down, due to plentiful supplies, the falling corn board and the continuing absence of demand from China.
The DTN weekly DDG spot price average fell another $4 per ton in the past week, from $135 last week to $131 this week. This is the lowest point the average has reached since the first week of October 2010.
The average has now fallen for the past 15 weeks in a row, dropping a whopping $108 per ton during that time -- from $239 per ton during the first week of April to this week's average of $131 per ton.
Of the 37 Midwestern locations DTN collects spot prices from, 17 locations reported their prices had decreased between $5 and $10 per ton in the past week. Prices remained unchanged at 19 locations, while only one location reported a price increase of $5.
Merchandisers told DTN lower corn and soybean meal prices led to a slight drop in DDG prices, though most reported a slow week with not a lot of buying.
Also, decent weather and rain led to hopes for a plentiful harvest, which is keeping prices down.
However, the situation with China still has the market on edge. After China announced it would no longer issues permits for imports of U.S. DDG containing Syngenta's MIR 162 GMO trait, demand from China dropped considerably. Those decreases made a serious dent in U.S. DDG exports, as China is the U.S.' largest buyer. Consequently, DDG prices took an immediate and unprecedented nosedive.
Currently, existing permits are still being honored and contracts are still being written, but the lack of exports and China's more stringent inspections are still making the market uneasy as we await China's next move. China is still rejecting shipments of DDG containing the trait as well, forcing sellers to search for low-cost opportunities to re-route, and often at a lower price.
A bit of good news is that the lower prices have also renewed interest in DDG with livestock producers increasing inclusion rates and "using the heck out of it," as one merchandiser commented.
The value of DDG relative to corn this week was at about 97%, dramatically lower than the values that remained above 100%, sometimes rising as high as 140%, since April 2013. The value of DDG relative to soybean meal this week was about 35%.
The cost per unit of protein for DDG was at $5.24 this week, compared to the cost per unit of protein for soybean meal at $8.01.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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IN THE NEWS
China's DDGS Stance Opens New Markets
Interest in U.S.-produced dried distillers grains with solubles has increased after China's ban on Syngenta's MIR 162 GMO trait began a new regiment of stringent inspections and a ban on new exports permits.
According to an article by the U.S. Grains Council (http://bit.ly/…), the disruption in DDGS trade with China, has sparked interest in other markets which are seeking to take advantage of DDGS which has been rejected by Chinese authorities.
The first country to look to the U.S. for DDGS imports was Taiwan, which increased its imports of U.S. DDGS in June, about 13% of which was rejected in China and rerouted. The council reported that it is in close contact with the Taiwanese feed industry, which is aware of the opportunity of buying DDGS rejected by China.
Mexico, a major market for U.S. DDGS, is also snatching up product because of the uncharacteristically low prices at present.
Interest from buyers in Europe, the Middle East and North Africa is also rising, and the Council is working to establish new contacts in these regions. The council is also continuing to focus on its efforts to normalize the situation in China.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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DTN WEEKLY DISTILLERS GRAIN SPOT PRICES
CURRENT | PREVIOUS | ||||
COMPANY | STATE | 7/18/1900 | 7/11/1900 | CHANGE | |
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $140 | $150 | -$10 | |
Modified | $70 | $75 | -$5 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $150 | $155 | -$5 | |
Indiana | Dry | $140 | $150 | -$10 | |
Iowa | Dry | $130 | $140 | -$10 | |
Michigan | Dry | $175 | $185 | -$10 | |
Minnesota | Dry | $110 | $110 | $0 | |
North Dakota | Dry | $110 | $115 | -$5 | |
New York | Dry | $150 | $155 | -$5 | |
South Dakota | Dry | $110 | $115 | -$5 | |
Hawkeye Gold, IA (515-663-6413) | |||||
Iowa | Dry | $127 | $135 | -$8 | |
Modified | $44 | $50 | -$6 | ||
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $130 | $135 | -$5 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $140 | $150 | -$10 | |
Iowa | Dry | $120 | $120 | $0 | |
Michigan | Dry | $170 | $170 | $0 | |
Minnesota | Dry | $115 | $115 | $0 | |
Missouri | Dry | $145 | $145 | $0 | |
Ohio | Dry | $145 | $155 | -$10 | |
South Dakota | Dry | $110 | $115 | -$5 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $145 | $145 | $0 | |
Wet | $50 | $50 | $0 | ||
Illinois | Dry | $165 | $175 | -$10 | |
Nebraska | Dry | $145 | $145 | $0 | |
Wet | $50 | $50 | $0 | ||
Wisconsin | Dry | $165 | $165 | $0 | |
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $145 | $140 | $5 | |
Indiana | Dry | $140 | $140 | $0 | |
Iowa | Dry | $115 | $115 | $0 | |
Michigan | Dry | $150 | $150 | $0 | |
Minnesota | Dry | $105 | $105 | $0 | |
Nebraska | Dry | $115 | $115 | $0 | |
New York | Dry | $160 | $160 | $0 | |
North Dakota | Dry | $105 | $105 | $0 | |
Ohio | Dry | $150 | $155 | -$5 | |
South Dakota | Dry | $105 | $105 | $0 | |
Wisconsin | Dry | $128 | $130 | -$2 | |
Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
Indiana | Dry | $145 | $150 | -$5 | |
Iowa | Dry | $110 | $110 | $0 | |
Minnesota | Dry | $105 | $105 | $0 | |
Nebraska | Dry | $110 | $110 | $0 | |
Ohio | Dry | $150 | $155 | -$5 | |
South Dakota | Dry | $100 | $100 | $0 | |
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $195 | $200 | -$5 | |
*Prices listed per ton. | |||||
Weekly Average | $131 | $135 | -$4 | ||
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 | 7/17/2014 | $3.7950 | $135.54 | |
Soybean Meal | 7/17/2014 | $380.50 | ||
DDG Weekly Average Spot Price | $131.00 | |||
DDG Value Relative to: | 7/18 | 7/11 | 7/4 | |
Corn | 96.65% | 94.38% | 96.69% | |
Soybean Meal | 34.43% | 31.08% | 32.21% | |
Cost Per Unit of Protein: | ||||
DDG | $5.24 | $5.40 | $5.76 | |
Soybean Meal | $8.01 | $9.14 | $9.41 | |
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 (July 11, 2014)
Dried | Modified | Wet | |
FOB PLANT PRICES PER TON | |||
Iowa | 100.00-145.00 | 45.00-70.00 | 30.00-40.00 |
Minnesota | 110.00-125.00 | 60.00 | 40.00-45.00 |
Nebraska | 125.00-145.00 | 58.00-72.00 | 38.00-50.00 |
South Dakota | 105.00-119.50 | 60.00-63.00 | 28.00-38.00 |
Wisconsin | 150.00-170.00 | 68.00-90.00 | NQ |
Eastern Corn Belt | 140.00-175.00 | 80.00-90.00 | NQ |
Kansas | 138.00-155.00 | NQ | 49.00-60.00 |
Northern Missouri | 140.00-150.00 | NQ | 47.00-60.00 |
DELIVERED PRICES PER TON | |||
CIF NOLA | 160.00-180.00 | ||
Pacific Northwest | 175.00-187.00 | ||
California | 175.00-197.00 | ||
Texas Border (metric ton) | 215.00-235.00 | ||
Lethbridge AB | 155.00 | ||
Chicago | 165.00-180.00 |
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Jul 15, 2014)
Distillers Dry Grains
Rail Delivered California Points 184.00 dn 19.00-41.00
Truck California Points 190.00 dn 31.00-35.00
PACIFIC NORTHWEST WEEKLY FEED (Tue Jul 15, 2014)
Offers for Distillers Dried Grains delivered in June by rail to feed mills in the Pacific Northwest were 20.00 to 28.00 lower, from 170.00-185.00. Offers for distillers dried grains trans-loaded onto trucks and delivered during June to Willamette Valley dairies were 20.00 to 30.00 lower, from 188.00-200.00.
*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.) |
6/20/14 | 93326 | 9583 | 1775 | 104684 | 4885388 |
6/27/14 | 94819 | 9736 | 1803 | 106358 | 4963513 |
7/04/14 | 92232 | 9470 | 1754 | 103456 | 4828097 |
7/11/14 | 93824 | 9634 | 1784 | 105242 | 4911430 |
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) 364-2183-1527, or e-mail cheryl.anderson@dtn.com.
(PH/GH/ES/SKĂ‚Â)
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