DTN Weekly Distillers Grains Update
DDG Prices Fall Slightly in Slow Week
Prices of dried distillers grains seemed to stabilize over the Labor Day holiday week, falling only slightly due to quiet trade.
The DTN weekly DDG spot price average fell a mere $1 per ton in the past week, from $119 per ton last week to $118 this week. This is the first price decrease since the first week of August, as the average increased from a low of $101 per ton that week, to $119 last week. This was the first rebound in prices seen since a four-month-long freefall began in early April, as the average dropped $138 per ton between the first week of April and the first week of August.
Of the 37 Midwestern locations DTN collects spot prices from, 23 locations reported their spot prices remained unchanged from last week. Four locations reported price decreases between $5 and $10 per ton since last week, while only two price increases were reported of $5 and $15. Two locations reported no offers, and prices at six locations were unavailable last week.
Merchandisers described the post-holiday trade as quiet, with not a lot of product moving. Some attributed the slight price decrease to plants trying to move out some product by enticing buyers with slightly cheaper values.
This follows last week, when merchandisers cited some slow production and snug availability for some upward motion in prices. Some also mentioned some tightness in soybean meal and said DDG had followed suit. Also, with soybean meal basis up, some buyers last week were showing more interest in distillers grains to provide protein in livestock rations.
The value of DDG relative to corn this week rose from about 92% last week to about 97% this week, as values follow the increases in DDG prices. This still is a comfortable level compared to the values that rose as high as 130% to 140% earlier this year.
The value of DDG compared to soybean meal fell just slightly, from about 27% last week to 26% this week.
The cost per unit of protein for DDG was at $4.72 this week, compared to the cost per unit of protein for soybean meal at $9.41.
Cheryl Anderson can be reached at Cheryl.anderson@dtn.com.
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IN THE NEWS
Corn, DDG Exports Boom to Middle East and North Africa
Exports of U.S. grains and co-products to the Middle East and North Africa have rebounded in this market year, according to an article by the U.S. Grains Council (http://bit.ly/…).
The region has sharply increased their demand for U.S. grains and co-products since the last marketing year.
In the 2012/2013 marketing year, the region imported less than 300,000 metric tons (11.8 million bushels). However, as of Aug. 21, the Middle East and North Africa had already imported almost 4.4 million metric tons (173 million bushels).
The Council attributes the growth to prices, world market conditions and consistent trade servicing.
Cary Sifferath, regional director of the Middle East and Africa for the Council, said the Council remains in communication with major buyers regarding prices of U.S. corn and co-products. He added that the Council also reminds buyers in the area about co-products such as dried distillers grains with solubles and corn gluten feed and helps buyers import corn and co-products in combined shipments. The Council also works on bringing current technical information to the feed, broiler and dairy industries.
Cheryl Anderson can be reached at Cheryl.anderson@dtn.com.
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DTN WEEKLY SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 9/5/2014 | 8/29/2014 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $120 | $120 | $0 | |
| Modified | $65 | $65 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $130 | $140 | -$10 | |
| Indiana | Dry | $130 | $135 | -$5 | |
| Iowa | Dry | $130 | $130 | $0 | |
| Michigan | Dry | $130 | $130 | $0 | |
| Minnesota | Dry | $115 | $100 | $15 | |
| North Dakota | Dry | $105 | $105 | $0 | |
| New York | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $100 | $100 | $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 | $110 | $110 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $130 | $140 | -$10 | |
| Iowa | Dry | $115 | $115 | $0 | |
| Michigan | Dry | $140 | $140 | $0 | |
| Minnesota | Dry | $115 | $115 | $0 | |
| Missouri | Dry | $135 | $135 | $0 | |
| Ohio | Dry | $130 | $140 | -$10 | |
| South Dakota | Dry | $105 | $100 | $5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $115 | $115 | $0 | |
| Wet | $50 | $50 | $0 | ||
| Illinois | Dry | $130 | $130 | $0 | |
| Nebraska | Dry | $115 | $115 | $0 | |
| Wet | $50 | $50 | $0 | ||
| Wisconsin | Dry | NO | NO | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $125 | $125 | $0 | |
| Indiana | Dry | $125 | $125 | $0 | |
| Iowa | Dry | $120 | $120 | $0 | |
| Michigan | Dry | $125 | $125 | $0 | |
| Minnesota | Dry | $110 | $110 | $0 | |
| Nebraska | Dry | $105 | $105 | $0 | |
| New York | Dry | $145 | $130 | $15 | |
| North Dakota | Dry | $105 | $105 | $0 | |
| Ohio | Dry | $120 | $120 | $0 | |
| South Dakota | Dry | $105 | $105 | $0 | |
| Wisconsin | Dry | $110 | $110 | $0 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $120 | NA | ||
| Iowa | Dry | $115 | NA | ||
| Minnesota | Dry | $110 | NA | ||
| Nebraska | Dry | $115 | NA | ||
| Ohio | Dry | $120 | NA | ||
| South Dakota | Dry | $105 | NA | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $185 | $185 | $0 | |
| *Prices listed per ton. | |||||
| Weekly Average | $118 | $119 | -$1 | ||
| 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 | 9/3/2014 | $3.4125 | $121.88 | |
| Soybean Meal | 9/3/2014 | $447.20 | ||
| DDG Weekly Average Spot Price | $118.00 | |||
| DDG Value Relative to: | 9/5 | 8/29 | 8/22 | |
| Corn | 96.82% | 92.11% | 85.80% | |
| Soybean Meal | 26.39% | 27.47% | 26.82% | |
| Cost Per Unit of Protein: | ||||
| DDG | $4.72 | $4.76 | $4.44 | |
| Soybean Meal | $9.41 | $9.12 | $8.71 | |
| 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 29, 2014)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 95.00-135.00 | 40.00-70.00 | 30.00-35.00 |
| Minnesota | 110.00-125.00 | 45.00 | 50.00 |
| Nebraska | 100.00-122.00 | 45.00-58.00 | 35.00-41.00 |
| South Dakota | 95.00-100.00 | 40.00-55.00 | 27.00-30.00 |
| Wisconsin | 115.00-120.00 | 50.00-60.00 | NQ |
| Eastern Corn Belt | 115.00-140.00 | 65.00-71.00 | NQ |
| Kansas | 115.00-125.00 | NQ | 40.00-50.00 |
| Northern Missouri | 120.00-130.00 | NQ | 35.00-40.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 170.00-180.00 | ||
| Pacific Northwest | 173.00-181.00 | ||
| California | 170.00-180.00 | ||
| Texas Border (metric ton) | 190.00-210.00 | ||
| Lethbridge AB | 155.00 | ||
| Chicago | 133.00-140.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Sep 4, 2014)
Distillers Dry Grains
Rail to California Points 170.00-175.00 unch
Truck to California Points 180.00-196.00 unch-up 6.00
PACIFIC NORTHWEST WEEKLY FEED (Tue Sep 4, 2014)
Offers for Distillers Dried Grains delivered in August by rail to feed mills in the Pacific Northwest were steady to 5.00 lower, from 180.00-190.00. Offers for distillers dried grains trans-loaded onto trucks and delivered during August to Willamette Valley dairies were also steady to 5.00 lower, from 198.00-205.00.
*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.) |
| 8/01/14 | 89137 | 9215 | 1706 | 100058 | 5306495 |
| 8/08/14 | 92003 | 9511 | 1761 | 103275 | 5477103 |
| 8/15/14 | 92596 | 9572 | 1773 | 103941 | 5512401 |
| 8/22/14 | 90224 | 9327 | 1727 | 101279 | 5371209 |
*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 (402) 364-2183-1527, or e-mail cheryl.anderson@dtn.com.
(PH/GH/ES/SKĂ‚Â)
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