DDG $ ?

[Stocker Steve]

I see $90/T FOB in the Dakotas. What current price are you seeing locally ?

 

[Lucky_P]

At the plant here, currently:
$150/T for dry
$89/T for modified

 

[Craig]

$130/ton for dry. Our corn cash bid is still over $3 though.

 

[Stocker Steve]

$130/ton for dry. Our corn cash bid is still over $3 though.

Our cash corn bid is still over $2

 

[Craig]

I can't figure that out, what gives? You get 30 miles north of here and it's below 3 bucks, and has been for quite awhile. Lowest I've seen here is 3.04. Granted there are four ethanol plants within 30 minutes of here, but it's not like this is the only place in the state like that.

 

[Bigfoot]

$150 a ton. That's more than corn. Our ethanol plant is a coop. I wouldn't mind seeing it at half that to members.

 

[Stocker Steve]

I can't figure that out, what gives?

Local elevator is offering $2.68. I don't think they want to own more corn right now. There have been some large inventory losses recently for folks w/o protection.

Neighbor had his wet low test weight froze out corn checked today. Net after discounts right now is $1.58. :nod:

 

[Craig]

I know these prices are bad for everyone in the long run, but at that price I would fill everything I could find to hold feed!

 

[Lucky_P]

Agreed, BF. With corn as low as it is, I don't know why DDG is still so high.
But... I have little(no) understanding of the commodity markets...

 

[Stocker Steve]

Agreed, BF. With corn as low as it is, I don't know why DDG is still so high.
But... I have little(no) understanding of the commodity markets...

There is linkage between energy products, but the price changes do not all occur at the same time.
I think corn prices are a bit of a local spot market - - while byproduct prices are seasonal, sell into a wider area, and may be under contracted.
For example: some Mpls. byproducts go by barge to the gulf and then to OUS markets.

 

[TexasBred]

Agreed, BF. With corn as low as it is, I don't know why DDG is still so high.
But... I have little(no) understanding of the commodity markets...

DDG (dry) is not competing with corn. It competes with the protein sources such as soybean meal, cottonseed meal, canola etc. and it's usually in high demand and limited supply. At 26-32% protein it stands to reason that it should be more expensive than corn...considerably more.

 

[sim.-ang.king]

$80-$105.
Corn Gluten Pellets $130.

 

[Stocker Steve]

Agreed, BF. With corn as low as it is, I don't know why DDG is still so high.
But... I have little(no) understanding of the commodity markets...

DDG (dry) is not competing with corn. It competes with the protein sources such as soybean meal, cottonseed meal, canola etc. and it's usually in high demand and limited supply. At 26-32% protein it stands to reason that it should be more expensive than corn...considerably more.

When corn (energy) is cheap - - you are correct.