Phone: 800-862-8529                                                          Fax: 509-545-0909
Weather |  Market News |  Headline News |  DTN Ag Headlines |  AgBizDir.com |  Crops |  Futures |  Portfolio |  Futures Markets |  Quotes 
 
  Home  
  Producer Account Login  
  About Us  
  PNW Charts  
  Daily Commentary  
  Real Time Quotes  
  Calendar  
  Contact Us  
  Tri Cities Grain Photo Gallery  
  LDP  
  Administrative Login  
 
- DTN Headline News
DTN Distillers Grain Weekly Update
Friday, July 18, 2014 7:21AM CDT

By Cheryl Anderson
DTN Staff Reporter

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.

(AG)


blog iconDTN Blogs & Forums
DTN Market Matters Blog
Katie Micik
Markets Editor
Tuesday, July 22, 2014 11:45AM CDT
Friday, July 18, 2014 5:54PM CDT
Wednesday, July 16, 2014 5:59PM CDT
Technically Speaking
Darin Newsom
DTN Senior Analyst
Monday, July 21, 2014 3:04PM CDT
Sunday, July 20, 2014 2:15PM CDT
Saturday, July 19, 2014 12:19PM CDT
Fundamentally Speaking
Joel Karlin
DTN Contributing Analyst
Friday, July 18, 2014 12:22PM CDT
Wednesday, July 16, 2014 3:00PM CDT
Thursday, July 10, 2014 3:55PM CDT
DTN Ag Policy Blog
Chris Clayton
DTN Ag Policy Editor
Monday, July 21, 2014 9:53PM CDT
Thursday, July 17, 2014 3:41PM CDT
Wednesday, July 16, 2014 1:42PM CDT
Minding Ag's Business
Marcia Taylor
DTN Executive Editor
Monday, July 21, 2014 9:40PM CDT
Friday, July 18, 2014 10:06PM CDT
Thursday, July 17, 2014 3:00PM CDT
DTN Ag Weather Forum
Bryce Anderson
DTN Ag Meteorologist and DTN Analyst
Friday, July 18, 2014 6:24PM CDT
Thursday, July 17, 2014 5:48PM CDT
Tuesday, July 15, 2014 4:23PM CDT
DTN Production Blog
Pam Smith
Crops Technology Editor
Thursday, July 17, 2014 11:54AM CDT
Thursday, July 10, 2014 8:46PM CDT
Tuesday, July 1, 2014 7:24PM CDT
Harrington's Sort & Cull
John Harrington
DTN Livestock Analyst
Friday, July 18, 2014 10:22PM CDT
Friday, July 11, 2014 6:04PM CDT
Thursday, July 3, 2014 9:19PM CDT
South America Calling
Alastair Stewart
South America Correspondent
Monday, July 14, 2014 4:17PM CDT
Wednesday, July 2, 2014 4:17PM CDT
Tuesday, July 1, 2014 4:15PM CDT
An Urban’s Rural View
Urban Lehner
Editor Emeritus
Friday, July 18, 2014 11:21AM CDT
Monday, July 14, 2014 4:23PM CDT
Monday, July 7, 2014 11:07AM CDT
Machinery Chatter
Jim Patrico
Progressive Farmer Senior Editor
Wednesday, July 16, 2014 7:19PM CDT
Tuesday, July 8, 2014 12:05PM CDT
Tuesday, July 1, 2014 7:19PM CDT
Canadian Markets
Cliff Jamieson
Canadian Grains Analyst
Friday, July 18, 2014 10:41PM CDT
Wednesday, July 16, 2014 10:23PM CDT
Tuesday, July 15, 2014 10:48PM CDT
Editor’s Notebook
Greg D. Horstmeier
DTN Editor-in-Chief
Friday, July 18, 2014 6:08PM CDT
Saturday, July 12, 2014 3:22AM CDT
Thursday, July 3, 2014 7:06PM CDT
 
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN