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DTN Distillers Grain Weekly Update
Friday, May 29, 2015 7:31AM CDT
By Cheryl Anderson
DTN Staff Reporter

Spot prices of dried distillers grains continued on their six-week downtrend this week on lackluster export demand.

The DTN weekly DDG spot price average fell another $5 per ton in the past week, from $169 per ton to $164 per ton. This is the sixth continuous week the spot price average has decreased, falling $21 per ton in that time, from $185 per ton in mid-April to $164 per ton this week.

Of the 36 Midwestern locations DTN collects spot prices from, 21 locations reported their spot prices had decreased between $2 per ton and $15 per ton since last week, though most decreases were in the $5-to-$10-per-ton range. Prices at 15 locations remained unchanged since last week, and no price increases were reported.

Merchandisers told DTN that declining export demand was a major factor in the DDG spot price decrease in the past week. China, the largest buyer of U.S. DDG, has been honoring existing contracts, but has not been buying additional product as it tries to sell off some surplus stocks of corn.

Domestic demand has waned as well, partially because of the avian influenza epidemic that continues to make its way across the Midwest. The influenza is predominantly spread by wild waterfowl that contaminate land and waterways lying in the Midwestern fly zone. The epidemic has resulted in the destruction of millions of chickens and turkeys, especially in Minnesota and northern Iowa, which is reducing demand for DDG for poultry feed.

Another contributing factor to the price decline is the transition into the new month and the fact that June is trading at a discount currently. Also, domestic demand is in its typical seasonal decline, with more cattle out on pasture requiring less purchased feedstuffs.

Also, many ethanol plants are coming out of scheduled seasonal maintenance shut-downs, so production is back up and running and DDG supplies are rebuilding. The continuing stormy weather, combined with rains and flooding, is contributing to an uncertain market as crops begin to emerge.

The value of DDG relative to corn this week fell slightly, from about 131% last week to about 130% this week. The value of DDG relative to soybean meal also fell slightly, from about 56% last week to about 54% this week.

The cost per unit of protein for DDG was at about $6.56 this week, compared to the cost per unit of protein for soybean meal at $6.42.

Cheryl Anderson can be reached at cheryl.anderson@dtn.com.

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IN THE NEWS

Trade Deal Could Aid Grain, DDG Exports

The Trans Pacific Partnership could expand U.S. trade in a number of export markets, including distillers grains, according to an article by WSIL-TV in Carterville, Illinois (http://bit.ly/…).

The trade deal could potentially expand trade between the U.S. and 12 key export markets that have been previously protected, including Japan, Mexico and Malaysia.

The TPP could be good news for a variety of industry, including grains and livestock, and could give the U.S. a presence in new market places.

Since dried distillers grains are widely used in the beef, dairy, swine and poultry industry, both in the U.S. and a growing number of countries that import DDG, the trade deal could indirectly benefit ethanol producers as well.

Although the TPP had a victory in the Senate, it has faced more opposition in the House, which could act on the bill when it returns from a break next week.

Cheryl Anderson can be reached at cheryl.anderson@dtn.com.

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DTN WEEKLY DDG SPOT PRICES

CURRENT PREVIOUS
COMPANY STATE 5/29/2015 5/22/2015 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 $175 $180 -$5
Indiana Dry $175 $175 $0
Iowa Dry $170 $170 $0
Michigan Dry $170 $170 $0
Minnesota Dry $160 $163 -$3
North Dakota Dry $160 $160 $0
New York Dry $165 $160 $5
South Dakota Dry $160 $160 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $160 $160 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $165 $165 $0
Iowa Dry $158 $165 -$7
Michigan Dry $165 $165 $0
Minnesota Dry $165 $170 -$5
Missouri Dry $180 $190 -$10
Ohio Dry $160 $160 $0
South Dakota Dry $158 $160 -$2
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $170 $170 $0
Wet $40 $40 $0
Illinois Dry $185 $185 $0
Nebraska Dry $170 $170 $0
Wet $40 $40 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $170 $180 -$10
Indiana Dry $165 $180 -$15
Iowa Dry $160 $165 -$5
Michigan Dry $165 $175 -$10
Minnesota Dry $155 $165 -$10
Nebraska Dry $155 $160 -$5
New York Dry $160 $180 -$20
North Dakota Dry $155 $165 -$10
Ohio Dry $165 $175 -$10
South Dakota Dry $155 $165 -$10
Wisconsin Dry $160 $170 -$10
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry $160 $160 $0
Iowa Dry $150 $155 -$5
Minnesota Dry $155 $160 -$5
Nebraska Dry $165 $175 -$10
Ohio Dry $165 $175 -$10
South Dakota Dry $150 $155 -$5
Western Milling, Goshen, California (559-302-1074)
California Dry $230 $233 -$3
*Prices listed per ton.
Weekly Average $164 $169 -$5
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 5/28/2015 $3.5350 $126.25
Soybean Meal 5/28/2015 $304.80
DDG Weekly Average Spot Price $164.00
DDG Value Relative to: 5/29 5/22 5/15
Corn 129.90% 131.44% 133.86%
Soybean Meal 53.81% 55.56% 55.45%
Cost Per Unit of Protein:
DDG $6.56 $6.76 $6.76
Soybean Meal $6.42 $6.40 $6.42
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 (May 22, 2015)

Dried Modified Wet
FOB PLANT PRICES PER TON
Iowa 155.00-175.00 67.00-85.00 48.00-52.00
Minnesota 160.00-175.00 75.00 48.00-60.00
Nebraska 160.00-181.00 71.00-89.00 49.00-55.00
South Dakota 155.00-172.50 75.00-82.50 52.00-54.00
Wisconsin 175.00-190.00 80.00-95.00 NQ
Eastern Corn Belt 165.00-198.00 67.00-77.00 NQ
Kansas 165.00-185.00 NQ 55.00-66.00
Northern Missouri 165.00-190.00 NQ 49.00-65.00
DELIVERED PRICES PER TON
CIF NOLA 210.00-221.00
Pacific Northwest 217.00-233.00
California 213.00-235.00
Texas Border (metric ton) 230.00-255.00
Lethbridge AB 180.00
Chicago 180.00-195.00

Dried Distillers Grain: 10% Moisture

Modified Wet Distillers: 50-55% Moisture

Wet Distillers Grains: 65-70% Moisture

CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue May 26, 2015)

Distillers Dry Grains

  Rail to California Points          Jun 227.00       no comp
  FOB Truck to California Points     233.00-238.00    dn 2.00-up 1.00

PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue May 26, 2015)

Distillers Dried Grains: Offers for Distillers Dried Grains delivered in September by rail to feed mills in the Pacific Northwest were 5.00 lower from 213.00-215.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were 3.00 to 7.00 lower from 228.00-233.00.

*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 1, 2015

Highlights:

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.81 million tons during March 2015, up 10 percent from February 2015 but down 3 percent from January 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.26 million tons in March 2015, up 10 percent from February 2015 but down 6 percent from January 2015.

Wet mill corn gluten feed production was 331.5 thousand tons during March 2015, up 17 percent from February 2015 and up 3 percent from January 2015. Wet corn gluten feed 40 to 60 percent moisture was 308.4 thousand tons in March 2015, up 12 percent from February 2015 but down 2 percent from January 2015.

Co-products and Products Jan 2015 Feb 2015 March 2015
Dry Mill
Condensed distillers solubles (CDS-syrup) 162,626 128,057 163,713
Corn oil 105,356 96,347 107,141
Distillers dried grains (DDG) 438,936 405,025 438,728
Distillers dried grains with solubles (DDGS) 1,862,550 1,649,534 1,810,473
Modified distillers wet grains (DWG) <65% moisture 1,341,938 1,144,177 1,264,104
Modified distillers wet grains (DWG) 40-64% moisture 480,134 421,666 498,977
Wet Mill
Corn germ meal 71,492 48,546 57,439
Corn gluten feed 321,768 283,990 331,547
Corn gluten meal 90,617 80,855 93,078
Corn oil 41,961 41,020 42,684
Wet corn gluten feed 40-60% moisture 313,400 274,763 308,444

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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.)
5/01/15 88252 9062 1678 98992 5218250
5/08/15 90739 9317 1725 101782 5365326
5/15/15 95316 9787 1812 106916 5635945
5/22/15 96411 9899 1833 108143 5700658

*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

http://ncga.com/…

*Iowa Corn

http://www.iowacorn.org/…

Nebraska Corn Board

http://www.nebraskacorn.org/…

*Renewable Fuels Association - Ethanol Co-Products

http://www.ethanolrfa.org/…

*American Coalition for Ethanol

http://www.ethanol.org/…

*U.S. Grains Council

http://www.grains.org/…

*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

http://www.ddgs.umn.edu

*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

http://beef.unl.edu/…

*University of Nebraska Extension

http://ianrpubs.unl.edu/…

*Iowa Beef Center - Iowa State University

http://www.iowabeefcenter.org/…

*University of Missouri - Byproducts Resource Page

http://agebb.missouri.edu/…

*South Dakota State University - Dairy Science Department - Dairy cattle research

http://dairysci.sdstate.edu/…

(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.

(CZ\SK)


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