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Market Matters Blog           11/13 09:11
DDG Prices Higher
DDG Prices Steady on Average
Olmsted Locks and Dam a Welcome New Neighbor on Ohio River
Ag Groups Make Final Plea to FMSCA for Changes to HOS Rule
DDG Prices Higher on Average
Rain and Snow Shattering Farmers' Hopes for Decent Soybean Crop
DDG Prices Steady
Lockdown: High Water on Upper Mississippi Causes Locks to Close
It's in the Bag: Extra Grain Storage Needed This Crop Year
DDG Prices Slightly Lower 

******************************************************************************
DDG Prices Higher

   OMAHA (DTN) -- Distillers dried grains average spot prices from the 40 
locations DTN contacted were $2 per ton higher, at $136 per ton for the week 
ended Nov. 8, versus one week ago. Based on the average of prices collected by 
DTN, the value of DDG relative to corn for the week ended Nov. 8 was at 
101.95%. The value of DDG relative to soybean meal was at 44.43%. The cost per 
unit of protein for DDG was $5.04, compared to the cost per unit of protein for 
soybean meal at $6.44. 

   In its weekly distillers dried grains with solubles (DDGS) price update, 
U.S. Grains Council noted, " The market continues to bump along with a lack of 
bullish or bearish news resulting in several weeks of generally steady prices. 
This week merchandisers reported sales to Indonesia and Vietnam for November 
and December delivery. September export numbers show continued strong demand 
from Southeast Asian markets -- especially Indonesia, Thailand and Vietnam. 

   "Indications for November delivery of 40-foot containers to Southeast Asia 
are down slightly this week from last (-1$/MT on average) while containers to 
Taiwan fell $5/MT. At the U.S. Gulf, indications for November delivery were up 
for the second straight week; U.S. rail rates were up as well. Prices for 
January delivery are expected to increase due to higher domestic demand during 
the winter months."

   The U.S. Census Bureau reported last week that U.S. exports of DDGS totaled 
1,028,254 metric tons in September, also down from August, but up 15% from a 
year ago. U.S. DDGS continue to find broad interest with Mexico, Vietnam, and 
South Korea listed as the top three destinations in September. The first nine 
months of U.S. DDGS exports were up 10% in 2018 from a year ago.


ALL PRICES SUBJECT TO CONFIRMATION                      CURRENT          PREVIOUS       CHANGE
COMPANY      STATE                                     11/8/2018        11/1/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
             Missouri                 Dry                 $150             $145           $5
                                      Modified            $78              $75            $3
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
             Missouri Subject         Dry                 $145             $145           $0
                                      Wet                 $75              $75            $0
CHS, Minneapolis, MN (800-769-1066)
             Illinois                 Dry                 $145             $145           $0
             Indiana                  Dry                 $134             $134           $0
             Iowa                     Dry                 $130             $130           $0
             Michigan                 Dry                 $135             $135           $0
             Minnesota                Dry                 $125             $125           $0
             North Dakota             Dry                 $130             $130           $0
             New York                 Dry                 $145             $145           $0
             South Dakota             Dry                 $125             $125           $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
             Kansas                   Dry                 $143             $143           $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
             Indiana                  Dry                 $138             $132           $6
             Iowa                     Dry                 $138             $132           $6
             Michigan                 Dry                 $137             $132           $5
             Minnesota                Dry                 $135             $133           $2
             Missouri                 Dry                 $155             $145          $10
             Ohio                     Dry                 $138             $137           $1
             South Dakota             Dry                 $137             $131           $6
United BioEnergy, Wichita, KS (316-616-3521)
             Kansas                   Dry                 $144             $144           $0
                                      Wet                 $55              $55            $0
             Illinois                 Dry                 $145             $145           $0
             Nebraska                 Dry                 $144             $144           $0
                                      Wet                 $55              $55            $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
             Illinois                 Dry                 $135             $130           $5
             Indiana                  Dry                 $130             $130           $0
             Iowa                     Dry                 $130             $125           $5
             Michigan                 Dry                 $135             $135           $0
             Minnesota                Dry                 $130             $125           $5
             Nebraska                 Dry                 $135             $135           $0
             New York                 Dry                 $140             $140           $0
             North Dakota             Dry                 $140             $140           $0
             Ohio                     Dry                 $130             $125           $5
             South Dakota             Dry                 $130             $125           $5
             Wisconsin                Dry                 $130             $130           $0
Valero Energy Corp, San Antonio Texas               (210-345-3362)   (210-345-3362)
             Indiana                  Dry                 $140             $140           $0
             Iowa                     Dry                 $130             $125           $5
             Minnesota                Dry                 $130             $130           $0
             Nebraska                 Dry                 $125             $125           $0
             Ohio                     Dry                 $140             $140           $0
             South Dakota             Dry                 $125             $125           $0
             California                                   $192             $187           $5
Western Milling, Goshen, California (559-302-1074)
             California               Dry                 $195             $195           $0
*Prices listed per ton.
             Weekly Average                               $136             $134           $2
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.

                       VALUE OF DDG VS. CORN & SOYBEAN MEAL
                        Settlement Price:   Quote Date         Bushel  Short Ton
                                     Corn      11/8/2018      $3.7350      $133.39
                             Soybean Meal      11/8/2018      $306.10
            DDG Weekly Average Spot Price        $136.00
                                  DDG Value Relative to:     11/8         11/1
                                                    Corn      101.95%      102.30%
                                            Soybean Meal       44.43%       42.78%
                               Cost Per Unit of Protein:
                                                     DDG        $5.04        $4.96
                                            Soybean Meal        $6.44        $6.60
Notes:
Corn and soybean prices take 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 27.

   Mary Kennedy can be reached at mary.kennedy@dtn.com 

   Follow her on Twitter @MaryCKenn

******************************************************************************
DDG Prices Steady on Average

   OMAHA (DTN) -- Distillers dried grains spot prices from the 40 locations DTN 
contacted were mixed, but the average price was steady at $134 per ton for the 
week ended Nov. 1, versus one week ago.

   Based on the average of prices collected by DTN, the value of DDG relative 
to corn for the week ended Nov. 1 was at 102.30%. The value of DDG relative to 
soybean meal was at 42.78%. The cost per unit of protein for DDG was $4.96, 
compared to the cost per unit of protein for soybean meal at $6.60. 

   DDG prices remained steady on average this week as corn and soymeal futures 
fluctuated. Supplies remain plentiful as the EIA said ethanol plant production 
increased 35,000 barrels per day (bpd) to a two-month high at 1.059 million bpd 
during the week ended Oct. 26, 0.3% higher than the corresponding week in 2017.

   In its weekly distillers dried grains with solubles (DDGS) price update, 
U.S. Grains Council noted, "The market remained quiet this week, with a few 
inquiries from Asian buyers reported. Indications for November delivery of 
40-foot containers to Southeast Asia are unchanged this week from last week's 
figure. Overall, Taiwan saw the largest increase (+$3 per metric ton). At the 
U.S. Gulf, indications for November delivery were up $2 per metric ton, while 
U.S. rail rates fell slightly."


ALL PRICES SUBJECT TO CONFIRMATION               CURRENT          PREVIOUS
COMPANY   STATE                                 11/1/2018        10/25/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
          Missouri               Dry              $145              $148
                                 Modified          $75               $78
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
          Missouri               Dry              $145              $145
                                 Wet               $75               $75
CHS, Minneapolis, MN (800-769-1066)
          Illinois               Dry              $145              $145
          Indiana                Dry              $134              $132
          Iowa                   Dry              $130              $130
          Michigan               Dry              $135              $140
          Minnesota              Dry              $125              $130
          North Dakota           Dry              $130              $130
          New York               Dry              $145              $155
          South Dakota           Dry              $125              $130
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
          Kansas                 Dry              $143              $142
POET Nutrition, Sioux Falls, SD (888-327-8799)
          Indiana                Dry              $132              $130
          Iowa                   Dry              $132              $127
          Michigan               Dry              $132              $132
          Minnesota              Dry              $133              $132
          Missouri               Dry              $145              $142
          Ohio                   Dry              $137              $137
          South Dakota           Dry              $131              $130
United BioEnergy, Wichita, KS (316-616-3521)
          Kansas                 Dry              $144              $132
                                 Wet               $55               $55
          Illinois               Dry              $145              $145
          Nebraska               Dry              $144              $132
                                 Wet               $55               $55
U.S. Commodities, Minneapolis, MN (888-293-1640)
          Illinois Subject       Dry              $130              $130
          Indiana Subject        Dry              $130              $130
          Iowa Subject           Dry              $125              $125
          Michigan Subject       Dry              $135              $135
          Minnesota Subject      Dry              $125              $125
          Nebraska Subject       Dry              $135              $135
          New York Subject       Dry              $140              $140
          North Dak Subject      Dry              $140              $140
          Ohio Subject           Dry              $125              $125
          South Dak Subject      Dry              $125              $125
          Wisconsin Subject      Dry              $130              $130
Valero Energy Corp, San Antonio Texas       (210-345-3362)    (210-345-3362)
          Indiana                Dry              $140              $140
          Iowa                   Dry              $125              $125
          Minnesota              Dry              $130              $130
          Nebraska               Dry              $125              $135
          Ohio                   Dry              $140              $140
          South Dakota           Dry              $125              $125
          California                              $187              $187
Western Milling, Goshen, California (559-302-1074)
          California             Dry              $195              $197
*Prices listed per ton.
          Weekly Average                          $134              $134
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.

   **


                     VALUE OF DDG VS. CORN & SOYBEAN MEAL
                        Settlement Price:   Quote Date      Bushel  Short Ton
                                     Corn      11/1/2018   $3.6675      $130.98
                             Soybean Meal      11/1/2018   $313.40
            DDG Weekly Average Spot Price        $134.00
                                  DDG Value Relative to:   11/1       10/25
                                                    Corn   102.30%      103.93%
                                            Soybean Meal    42.78%       44.03%
                               Cost Per Unit of Protein:
                                                     DDG     $4.96        $4.96
                                            Soybean Meal     $6.60        $6.41
Notes:
Corn and soybean prices take 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 27.

   Mary Kennedy can be reached at mary.kennedy@dtn.com 

   Follow her on Twitter @MaryCKenn

******************************************************************************
Olmsted Locks and Dam a Welcome New Neighbor on Ohio River

   The Locks and Dams 52 and 53 Replacement Project, known as the Olmsted Locks 
and Dam, opened for business on Aug. 30, 2018, after 30 years of construction 
and a $3 billion price tag. The project suffered years of delays due to delays 
in funding and lack of availability of appropriations, cost increases of 
materials over time, unforeseen engineering problems, river conditions and 
other issues.

   Now that it's finished, the project will generate economic net benefits to 
the nation of more than $640 million annually, and the structures will pay for 
themselves in approximately four years, the U.S. Army Corps of Engineers 
(USACE) noted on its website. 

   "The Olmsted project consists of two 110- by 1,200-foot locks adjacent to 
the Illinois bank, and a dam comprised of five Tainter gates, 1,400 feet of 
boat-operated wickets and a fixed weir," the Corps said. A Tainter gate is a 
type of radial arm floodgate used in dams and canal locks to control water flow.

   The Olmsted Locks and Dam replaces the aging structures Ohio River Locks and 
Dams 52 and 53. There will be a fourfold increase in efficiency, as Olmsted 
provides for a single project with twin 1,200-foot locks, noted the Corps. 
Reliability will also be significantly increased, as the existing locks are 
decades beyond their designed service life. Olmsted will greatly reduce tow and 
barge delays through the busiest stretch of river in America's inland waterways.

   According to the USACE, Locks and Dams 52 and 53 in the lower portion of the 
river are remnants of the original 1929 river navigation system. More than 150 
million tons of cargo pass yearly through the stretch of the Ohio River where 
the Olmsted Locks and Dam are located, more tonnage than at any other place in 
the U.S. inland navigation system. As a whole, the Ohio River carries more than 
280 million tons of commodities a year.

   "Locks and Dams 52 and 53 on the lower Ohio River are the last of the old 
wicket dams. The wickets are constructed of heavy timber about 4 feet wide and 
up to 20 feet long. Raising or lowering the wickets is done by a crew on a 
steam boiler winch barge and track hoe that moves along the upstream face of 
the dam," said the Corps.

   The opening of Olmsted Locks and Dam originally was expected to be in 
October, but the early opening in August proved to be a blessing. The Waterways 
Journal reported that, on Aug. 24, 2018, the Louisville Engineer District told 
the River Industry Executive Task Force that a miter gate problem at Lock 52 
almost caused another full closure at the key chokepoint. Late in the day, the 
district canceled a proposed 48-hour closure, because the Corps had decided to 
start raising the Olmsted wickets to hold navigation pools due to receding 
river stages.

   Locks 52 and 53 have been costly for the barge industry and have hurt 
farmers during harvest more than once during their lifespan. In fall 2017, they 
were closed from Sept. 6-14 due to an unscheduled maintenance outage, halting 
all navigation while project personnel raised the wicket dam. This outage was 
in addition to the river closure at Lock 53 on Oct. 2 due to a failure of the 
hydraulics that open and close the lower wicket gate. Then, shortly after that 
closure, they were closed for nearly one week due to rising water and did not 
reopen until Oct. 16. That closure caused a backlog of nearly 60 vessels with 
over 650 barges of all commodities waiting to transit the site, according to 
the USDA Weekly Grain Transportation Report at that time.

   The Waterways Journal reported that Marty Hettel, chairman of the Inland 
Waterways Users board and vice president of government affairs at American 
Commercial Barge Line, said the failures of Locks 52 and 53 over the past 10 
years have imposed costs of about $75 million on shippers.

   In fact, Lock and Dam 52 cost $2.5 million to $3 million a year to maintain, 
on average. In fiscal year 2017, from October 2016 to September 2017, the USACE 
reported that they spent $13.2 million in repairs. By September 2018, the Corps 
finally bid farewell to Lock 52 and its counterpart, Lock 53, thanks to the 
smooth opening of Olmsted.

   Olmsted Lock and Dam operational achievement represents generations of 
innovation excellence, more than 45 million labor hours and stands as an 
example of the benefits provided to the nation and the Department of Defense 
from the work done by USACE on our nation's critical inland waterways.

   Mary Kennedy can be reached at mary.kennedy@dtn.com 

   Follow her on Twitter @MaryCKenn

******************************************************************************
Ag Groups Make Final Plea to FMSCA for Changes to HOS Rule

   The U.S. Department of Transportation's (DOT) Federal Motor Carrier Safety 
Administration (FMCSA) asked for public comment on their Aug. 23, 2018, 
Advanced Notice of Proposed Rulemaking (ANPRM), to determine if Hours of 
Service (HOS) revisions may alleviate unnecessary burdens placed on drivers 
while maintaining safety on our nation's highways and roads. The original 
comment period was supposed to end on Sept. 24, but a number of organizations 
requested extensions. 

   The current HOS rules are posted here:

   
https://www.fmcsa.dot.gov/regulations/hours-service/summary-hours-service-regula
tions 

   Some of these organizations included American Trucking Associations, 
Commercial Vehicle Safety Alliance, International Brotherhood of Teamsters, 
National Pork Producers Council and the National Tank Truck Carriers, among 
others. Certain regulations included in the HOS rule are having a significant 
impact on agriculture and other sectors of trucking. In order to provide all 
interested parties with additional time to submit comments, the FMCSA extended 
the deadline to Oct. 10, 2018.

   The FMCSA noted on their website that the four specific areas under 
consideration for revision are:

   *Expanding the current 100 air-mile "short-haul" exemption from 12 hours 
on-duty to 14 hours on-duty, in order to be consistent with the rules for 
long-haul truck drivers.

   *Extending the current 14-hour on-duty limitation by up to two hours when a 
truck driver encounters adverse driving conditions.

   *Revising the current mandatory 30-minute break for truck drivers after 8 
hours of continuous driving.

   *Reinstating the option for splitting up the required 10-hour off-duty rest 
break for drivers operating trucks that are equipped with a sleeper-berth 
compartment.

   In addition, the ANPRM sought public comment and relevant data on two 
recently submitted petitions requesting regulatory relief from HOS rules (1) 
pertaining to the 14-hour on-duty limitation, filed by the Owner-Operators 
Independent Drivers Association (OOIDA) and (2) pertaining to the 10-hour 
off-duty requirement, filed by TruckerNation.org.

   The OOIDA has asked for the elimination of the arbitrary 30-minute rest 
break and allowing drivers to take rest breaks once per 14-hour duty period for 
up to three consecutive hours as long as the driver is off-duty. In addition, 
OOIDA recommended expanding split-sleeper berth flexibility and updating the 
definition of the "Adverse Conditions" exception and applying it to the 14-hour 
clock among other HOS changes that would benefit highway safety.

   OOIDA noted in their comments submitted to FMCSA that it based its comments 
on feedback from its members, who are predominantly small-business truckers. 
"Most of the trucking industry is made up of small businesses," said OOIDA 
President Todd Spencer. "Small-business truckers are the safest and most 
diverse operators on the road. Yet for far too long, the federal government has 
failed to grasp the importance of this diversity and continues to burden the 
trucking industry with a "one-size-fits-all approach that punishes small 
businesses, stifles competition, and overregulates an industry deregulated by 
design."

   FARM BUREAUS AND LIVESTOCK GROUPS WEIGH IN

   The National Cattlemen's Beef Association, Livestock Marketing Association, 
American Farm Bureau Federation, American Beekeeping Federation, American Honey 
Producers Association, and National Aquaculture Association on behalf of the 
specialized subset of experienced drivers, submitted a petition to FMCSA. These 
groups pointed out the needed flexibility from certain provisions of the FMCSA 
HOS rules to accommodate the unique interstate transportation challenges of the 
U.S. livestock industry.

   Read more about it here:

   
https://www2.dtn.com/ag/assets/HoS_Exemption_Petition_of%20Livestock_Haulers.pdf
 

   The groups asked for a five-year exemption from certain HOS requirements for 
livestock haulers and encouraged the Department of Transportation to work with 
the livestock industry to implement additional fatigue-management practices.

   Current HOS rules limit drive time to 11 hours and limit "on-duty hours" to 
14 hours. Instead, the groups asked that livestock haulers be granted approval 
to drive up to 15 hours with a 16-hour on-duty period, following a 10-hour 
consecutive rest period. "Any livestock hauler wishing to operate under the 
extended drive time would be required to complete pre-trip planning and 
increased fatigue-management training," noted the petition.

   "Livestock haulers are highly-trained professionals who take careful steps 
to ensure the safety of everyone on the road. Through this petition, we hope to 
work with DOT to build on our industry's strong safety record and provide 
haulers with some additional relief from overly restrictive HOS requirements," 
said Kevin Kester, president of the National Cattlemen's Beef Association.

   "When livestock and other live animals are transported, it's important to 
get them to their destination safely and without delay or disruption. Safety 
for the driver and others on the road is a priority. That is why we are 
petitioning DOT to adopt modern fatigue-management practices that provide the 
same or greater level of safety while avoiding unintended and unnecessary 
stress on the animals entrusted to our care," said Zippy Duvall, American Farm 
Bureau Federation President.

   Not all participants supported increased flexibility to the HOS rule. In an 
Oct. 11, 2018, article, Transport Topics reported that at a public listening 
session, Harry Adler, public affairs manager at the Truck Safety Coalition, 
urged FMCSA to "strongly consider" safety implications before making changes to 
HOS rules. At that listening session, Franklin Wood, a father whose daughter 
died in 1992 on the road to college when a truck hit her disabled vehicle, said 
flexible rules allow "bad actors more leeway to be reckless," noted the article.

   "I think even eight hours on the road is a hardship. Backing off of 
regulations only makes it easier for the ones that will exploit these rules to 
the detriment of the driving public," Wood said. "Safety was the formation for 
FMCSA. It's in the name. Making driving more efficient for the carriers is not 
your responsibility."

   Now that the extended comment period has ended, it is up to FMCSA to decide 
what changes or possible exemptions may or may not be made in to law. Given the 
pros and cons presented by the some 5,021 online comments and others in various 
listening sessions, the decision will likely not be an easy one.

   Mary Kennedy can be reached at mary.kennedy@dtn.com 

   Follow her on Twitter @MaryCKenn

******************************************************************************
DDG Prices Higher on Average

   OMAHA (DTN) -- Distillers dried grains spot prices from the 40 locations DTN 
contacted were mixed, but the average price was up $1 per ton at $134 per ton 
versus two weeks ago for the week ended Oct. 25. 

   Based on the average of prices collected by DTN, the value of DDG relative 
to corn for the week ended Oct. 25 was at 103.93%. The value of DDG relative to 
soybean meal was at 44.03%. The cost per unit of protein for DDG was $4.96, 
compared to the cost per unit of protein for soybean meal at $6.41. 

   DDG prices were steady for the most part as lower corn and soymeal futures 
are keeping the market from moving much. Supply is not an issue as the EIA 
reported that ethanol plant production increased 13,000 barrels per day (bpd) 
to 1.024 million bpd during the week ended Oct. 19. Four-week-averaged ethanol 
production was 1.023 million bpd versus 1.009 million bpd during the 
corresponding four-week period in 2017.

   In their weekly distillers dried grains with solubles (DDGS) price update, 
U.S. Grains Council noted, "Merchandisers report continued steady demand from 
Indonesia, where interest in U.S. DDGS is expected to increase going forward. 
Additionally, demand from Bangladesh has remained steady. Indications for 
November delivery of 40-foot containers to Southeast Asia are down $2/metric 
tons (mt) this week from last week's figure, while prices at the U.S. Gulf are 
up from last week. Generally speaking, trade has been slow this week as U.S. 
merchandisers and buyers from around the globe came together for USGC's Export 
Exchange conference."

   USGC president and chief executive officer Tom Sleight noted that, "The U.S. 
DDGS market is once again on the rise in various parts of the world. Not only 
are we seeing increases of DDGS purchases in the western Hemisphere -- in 
Mexico and Canada -- but we are also seeing increases in countries like 
Indonesia, Vietnam and India."


ALL PRICES SUBJECT TO CONFIRMATION                 CURRENT          CURRENT      CHANGE
COMPANY    STATE                                  10/25/2018      10/11/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
           Missouri               Dry                $148            $145          $3
                                  Modified           $78              $75          $3
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
           Missouri               Dry                $145            $145          $0
                                  Wet                $75              $75          $0
CHS, Minneapolis, MN (800-769-1066)
           Illinois               Dry                $145            $145          $0
           Indiana                Dry                $132            $132          $0
           Iowa                   Dry                $130            $130          $0
           Michigan               Dry                $140            $140          $0
           Minnesota              Dry                $130            $130          $0
           North Dakota           Dry                $130            $130          $0
           New York               Dry                $155            $155          $0
           South Dakota           Dry                $130            $130          $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
           Kansas                 Dry                $142            $142          $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
           Indiana                Dry                $130            $126          $4
           Iowa                   Dry                $127            $127          $0
           Michigan               Dry                $132            $134          -$2
           Minnesota              Dry                $132            $130          $2
           Missouri               Dry                $142            $137          $5
           Ohio                   Dry                $137            $135          $2
           South Dakota           Dry                $130            $128          $2
United BioEnergy, Wichita, KS (316-616-3521)
           Kansas                 Dry                $132            $132          $0
                                  Wet                $55              $55          $0
           Illinois               Dry                $145            $145          $0
           Nebraska               Dry                $132            $132          $0
                                  Wet                $55              $55          $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
           Illinois               Dry                $130            $130          $0
           Indiana                Dry                $130            $130          $0
           Iowa                   Dry                $125            $125          $0
           Michigan               Dry                $135            $135          $0
           Minnesota              Dry                $125            $125          $0
           Nebraska               Dry                $135            $135          $0
           New York               Dry                $140            $140          $0
           North Dakota           Dry                $140            $140          $0
           Ohio                   Dry                $125            $125          $0
           South Dakota           Dry                $125            $125          $0
           Wisconsin              Dry                $130            $130          $0
Valero Energy Corp, San Antonio Texas          (210-345-3362)   (210-345-3362)
           Indiana                Dry                $140            $140          $0
           Iowa                   Dry                $125            $125          $0
           Minnesota              Dry                $130            $130          $0
           Nebraska               Dry                $135            $135          $0
           Ohio                   Dry                $140            $140          $0
           South Dakota           Dry                $125            $125          $0
           California                                $187            $187          $0
Western Milling, Goshen, California (559-302-1074)
           California             Dry                $197            $194          $3
*Prices listed per ton.
           Weekly Average                            $134            $133          $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.

                     VALUE OF DDG VS. CORN & SOYBEAN MEAL
                       Settlement Price:  Quote Date        Bushel  Short Ton
                                    Corn    10/25/2018     $3.6100     $128.93
                            Soybean Meal    10/25/2018     $304.30
           DDG Weekly Average Spot Price       $134.00
                                DDG Value Relative to:    10/25       10/11
                                                  Corn     103.93%     101.85%
                                          Soybean Meal      44.03%      42.52%
                             Cost Per Unit of Protein:
                                                   DDG       $4.96       $4.93
                                          Soybean Meal       $6.41       $6.59
Notes:
Corn and soybean prices take 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 27.

   Mary Kennedy can be reached at mary.kennedy@dtn.com 

   Follow her on Twitter @MaryCKenn

******************************************************************************
Rain and Snow Shattering Farmers' Hopes for Decent Soybean Crop

   It's been a tough year for farmers in the Midwest states of Minnesota, South 
Dakota, northern Iowa, northeastern North Dakota and western Wisconsin. Many of 
these areas endured late planting due to April snows, record setting rainfall 
in early summer, hailstorms and then rain and snow delayed harvest.

   Most of the crop was looking good heading in to September, but then came 
more rain and more rain on top of that. Some of the areas even received snow 
recently. It's as if Mother Nature was picking on them constantly, daring them 
to harvest a good crop.

   It appears she may have won the last round. Many farmers scouted their 
fields after the recent bout of rain and some were disheartened at what they 
saw. Social media was full of pictures of open soybean pods: some sprouting and 
some dropping beans. There were a few pictures of poor-looking corn with bent 
over stalks and cobs that had sprout and mold, but most of the focus was on the 
poor condition of the soybeans.

   Because of all the rain that delayed harvest, soybeans started to shatter. 
The risk of shattering is especially high when soybean fields go through 
repeated cycles of wet nights with heavy dew followed by dry days. Shattering 
may also occur if there is a long interval between final maturity and harvest 
delays, which is they just went through. This will create yield loss and any 
beans left in the pod are likely damaged and/or are starting to sprout.

   I reached out to farmers who were dealing with rain-damaged fields and those 
who saw their crops buried by snow. Here are their comments.

   CONSTANT RAIN CAUSES DAMAGE TO SOYBEANS

   "I am seeing between 1% and 5% split pods on my fields," said Dave Newby, of 
Bondurant, Iowa. "The good news is there are few beans actually on the ground. 
The bean quality is quite poor in the split pods with some of the beans having 
sprouted. There are some moldy and discolored beans in pods that are not split 
and that is worrisome. The pods are generally tough and hard to open right now. 
My concern is that when they dry out, there will be more pods that split. 

   "I have seen fields that you could see the split pods from the road. It's 
pretty bad if you can see it from the road. I have seen fields where there is 
almost no split pods. Some varieties have pods that don't split as easy. The 
earlier maturing varieties that were planted earlier seem to have more 
splitting problems," said Newby.

   Newby said that the cool weather should keep the beans from further 
sprouting, but they need heat to dry out the beans so they can be combined. 
"It's kind of a Catch-22 situation and we need some sunny weather, but that has 
been hard to come by. Hard to tell how much loss there will be as there is 
maybe 5% quality damage now but there could be more by the time they are 
combined." 

   According to Newby, there will be more than usual harvest loss as the beans 
will be flying all over when the cutter bar and reel hits them. "We planted our 
beans a little later than some did so we may have a little less problem as they 
are a bit greener. The areas that received the most rain recently probably have 
the worst problem. We were a little lucky that we only got 3 inches in October 
and not 5 inches to 7 inches like some did."

   Dennis Bogaards, of Pella, Iowa said, "This sounds like it is a really big 
problem across a lot of Iowa. I am guessing we will see losses from 10% to 50%. 
It depends on the field and variety and it appears that earlier beans are the 
worst. I have some 2.4 beans (early maturity soybean variety) that have at 
least two pods, sometimes three to four per plant, that are sprouted. Also 
seeing what looks like mold on some beans when I break them open and many black 
beans that have rotted.   

   "If we continue to get rain, it will only get worse. One positive might be 
the colder temps will hopefully limit germination in the pods," said Bogaards. 
"Also, one other thought is we might see the beans be ready to harvest before 
ground conditions are fit and the longer they sit in the field the worse it is 
going to get." Bogaards said he was wondering about seed production beans, and 
while he doesn't have any, he thinks seed quality for next year may not be very 
good.

   "The beans are a mess!" said Mike Carlson, of Red Oak, Iowa "I've had over 
22 inches of rain in the last 60 days. Just way too much! Now the beans are 
swelling and the pods are breaking open and the beans are falling out. Some of 
them are sprouting in the pod so I'm sure we will be dealing with quality 
issues too." He said because of that, elevators will be taking discounts for 
damage which will further add to loss in the final price.

   "When it dries up, the pods will be so brittle that shattering will be 
terrible! We have definitely lost the top end off of the yield," added Carlson. 
"We've gone from a decent crop to possibly an insurance claim. It's hard to say 
until I get back out there but I would guess a 5- to 10-bushel-per-acre (bpa) 
loss at least; I just hope I'm wrong. I can't do anything about it so it's 
frustrating. Trying not to dwell on it because it could get to you. It's pretty 
widespread too. Everyone with beans in the field is seeing it. It is just 
sickening!"

   Carlson said there is also wet ground that might not even get harvested, but 
he's hoping the wet areas that he can't get to don't amount to much. "If we 
have to, we might come back after it freezes. The weather sounds better for 
next week. Gotta take the bad with the good. It's tough sometimes, but this is 
what I chose to do and wouldn't be happy doing anything else."

   SNOW BURIES CROPS

   "We have had 6 inches of snow and 8 inches of snow on our soys," said Dave 
Blasey, from eastern North Dakota. "There will be yield loss but I don't know 
how much yet. Not the most optimistic fall so far."

   Peter Ness, of Sharon, North Dakota told me over the weekend that he figured 
half the snow melted overnight with the wind and humidity. "Most crops took it 
very well. For how wet it is, we'll probably have to wait till the ground 
freezes to take the soybeans off. The guys with edible beans are really 
worried. Some of the corn cannibalized and is breaking down." (Stalk 
cannibalization happens when nutrients are "translocated" to developing kernels 
at the expense of stalk health.)

   Ness also noted that black birds have moved into the sunflower fields and 
are doing extensive damage. "The past month has been hell for farmers," he 
added.

   Andy Weisser, of Roscoe, South Dakota told me on Friday that he finally 
managed to go out and access what the damage was from the snow. "I would say 
the corn handled it much worse than the soybeans! The corn stalk strength was 
not the best this year due to a dry August, so the wet snow and wind managed to 
tip over more corn. Our yields in corn may be about 10 bpa.

   "Our soybeans were not too much to brag about, maybe 30 bpa, due to wind 
damage this spring and two hail storms in the beginning of July. The snow was 
just more salt in the wound."   

   Weisser said they have only harvested 3% of their total acres this year, and 
he believes that progress is the same for other farmers in his area. "We did 
try to harvest before all the moisture, but it was too wet to store in a grain 
bin. I will say it could have been worse and we probably are lucky that we had 
a dry summer because this should soak in once it warms up. I hope to be able to 
try and harvest by Monday." 

   Chad E. Colby, general manager of Central Illinois Ag, did a survey on 
Twitter late in the week asking if recent weather will decrease yields. Of the 
239 who responded, 59% said yes, 20% said no and 21% were uncertain. "Safe to 
say in many places across the Midwest yield will be affected due to weather of 
last month on mature crops," added Colby.

   "We thought this was going to be a fast harvest, but this weather has just 
caught us unprepared! Shows Mother Nature is still the boss," said Weisser, 
most likely echoing farmers in the same situation.

   On Oct. 12, the University of Minnesota Extension published a blog on 
"Storing, Drying, and Handling Wet Soybeans" that can be found at 
http://blog-crop-news.extension.umn.edu/2018/10/storing-drying-and-handling-wet-
soybeans.html

   Mary Kennedy can be reached at mary.kennedy@dtn.com

   Follow her on Twitter @MaryCKenn

******************************************************************************
DDG Prices Steady

   OMAHA (DTN) -- Distillers dried grains spot prices from the 40 locations DTN 
contacted were mixed, but the average price was steady at $133 per ton versus 
one week ago for the week ended Oct. 11. 

   Based on the average of prices collected by DTN, the value of DDG relative 
to corn for the week ended Oct. 11 was at 101.85%. The value of DDG relative to 
soybean meal was at 42.52%. The cost per unit of protein for DDG was $4.93, 
compared to the cost per unit of protein for soybean meal at $6.59. 

   DDG exporters are currently having problems moving rail cars into Mexico 
because rail lines are congested, which could pressure DDG prices until traffic 
improves. 

   On Oct. 1, the BNSF said in a service advisory that, "Due to congestion at 
the FXE Eagle Pass and El Paso, Texas, interchanges, BNSF has issued a permit 
embargo for all grain, dried distillers grain (DDG), wheat, soybean, soybean 
meal, corn, and corn syrup shipments destined to the FXE at these junctions." 

   In their weekly distillers dried grains with solubles (DDGS) price update, 
U.S. Grains Council noted, "Merchandisers report that, following a brisk period 
of container buying, the market is relatively quiet as international buyers 
assess their near-term needs. This pause should allow the U.S. river system to 
clear out and more DDGS to move down to the Gulf for export. DDGS prices are 
mixed this week. Prices at the U.S. Gulf fell $1 per metric ton (mt) to 
$183/mt. On average, prices for 40-foot containers to Southeast Asia were up 
$4/mt for October delivery."

   River conditions are not likely to improve anytime soon. As of Friday 
morning, the USACE had closed six locks between Lock 16 and Lock 24 on the 
Mississippi River, with the likelihood of two more closures by the weekend. The 
locks are not expected to reopen until sometime between Oct. 18 and Oct. 22. 
The high water has caused the closures after water started to flow over and 
through the lock structures, making it unsafe for tows to pass through. 

   
https://www.dtnpf.com/agriculture/web/ag/perspectives/blogs/market-matters-blog/
blog-post/2018/10/12/lockdown-high-water-upper-causes 


ALL PRICES SUBJECT TO CONFIRMATION             CURRENT        PREVIOUS   CHANGE
COMPANY   STATE                               10/11/2018      10/4/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
          Missouri            Dry                $145           $145       $0
                              Modified           $75             $75       $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
          Missouri            Dry                $145           $145       $0
                              Wet                $75             $75       $0
CHS, Minneapolis, MN (800-769-1066)
          Illinois            Dry                $145           $140       $5
          Indiana             Dry                $132           $132       $0
          Iowa                Dry                $130           $130       $0
          Michigan            Dry                $140           $140       $0
          Minnesota           Dry                $130           $130       $0
          North Dakota        Dry                $130           $130       $0
          New York            Dry                $155           $155       $0
          South Dakota        Dry                $130           $130       $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
          Kansas              Dry                $142           $142       $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
          Indiana             Dry                $126           $128       -$2
          Iowa                Dry                $127           $127       $0
          Michigan            Dry                $134           $139       -$5
          Minnesota           Dry                $130           $130       $0
          Missouri            Dry                $137           $143       -$6
          Ohio                Dry                $135           $135       $0
          South Dakota        Dry                $128           $130       -$2
United BioEnergy, Wichita, KS (316-616-3521)
          Kansas              Dry                $132           $135       -$3
                              Wet                $55             $55       $0
          Illinois            Dry                $145           $148       -$3
          Nebraska            Dry                $132           $135       -$3
                              Wet                $55             $55       $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
          Illinois            Dry                $130           $130       $0
          Indiana             Dry                $130           $130       $0
          Iowa                Dry                $125           $125       $0
          Michigan            Dry                $135           $135       $0
          Minnesota           Dry                $125           $125       $0
          Nebraska            Dry                $135           $135       $0
          New York            Dry                $140           $140       $0
          North Dakota        Dry                $140           $140       $0
          Ohio                Dry                $125           $125       $0
          South Dakota        Dry                $125           $125       $0
          Wisconsin           Dry                $130           $130       $0
Valero Energy Corp, San Antonio Texas     (210-345-3362)     (210-345-3362)
          Indiana             Dry                $140           $140       $0
          Iowa                Dry                $125           $130       -$5
          Minnesota           Dry                $130           $135       -$5
          Nebraska            Dry                $135           $135       $0
          Ohio                Dry                $140           $140       $0
          South Dakota        Dry                $125           $125       $0
          California                             $187           $187       $0
Western Milling, Goshen, California (559-302-1074)
          California          Dry                $194           $195       -$1
*Prices listed per ton.
          Weekly Average                         $133           $133       $0
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.

   **


VALUE OF DDG VS. CORN & SOYBEAN MEAL
Settlement Price:                         Quote Date     Bushel    Short Ton
Corn                                      10/11/2018     $3.6925   $131.88
Soybean Meal                              10/11/2018     $312.80
DDG Weekly Average Spot Price             $133.00
DDG Value Relative to:                                   10/11     10/4
Corn                                                     101.85%   101.33%
Soybean Meal                                             42.52%    43.13%
Cost Per Unit of Protein:
DDG                                                      $4.93     $4.93
Soybean Meal                                             $6.59     $6.49
Notes:
Corn and soybean prices take 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 27.

   Mary Kennedy can be reached at mary.kennedy@dtn.com 

   Follow her on Twitter @MaryCKenn

******************************************************************************
Lockdown: High Water on Upper Mississippi Causes Locks to Close

   Rain has been relentless the past week across the Upper Midwest, causing 
flash flooding and filling the Mississippi River from St. Paul, Minnesota, down 
to St. Louis, halting barge traffic on the river. 

   This past week, the U.S. Army Corps of Engineers (USACE) Rock Island 
District closed locks, starting with Lock 16 near Davenport, Iowa, and all the 
way down river to Lock 24 below Hannibal, Missouri, after water started to flow 
over and through the lock structures. The estimated time to reopen the locks is 
uncertain, but likely not before Oct. 18.

   American Commercial Barge Line reported that Lock 20, north of Quincy, 
Illinois, may have sustained damage after the river topped the lock wall, and 
may not open until Oct. 24 or 25.

   Farther south in St. Louis, the water has risen above 25 feet, causing 
transit only during daylight hours there. That will not change until the river 
falls back below 25 feet. As of midday Thursday, the river had risen to 29.26 
feet above flood stage, with expectations for it to rise to 34.9 feet by Oct. 
14, close to the major flood stage of 35 feet, according to the National 
Weather Service.

   "The October forecast predicts above-average precipitation in all areas of 
the country, with the Midwest and South expected to experience 
well-above-average rain," said Tom Russell, Russell Marine Group. "Concentrated 
heavy rains over the past week has resulted in high-water conditions on the 
Upper Mississippi River from Cairo to Minneapolis and on the Illinois River. 
Areas of both rivers are at or above flood stage."

   While the St. Louis Harbor has reached flood stage, Russell said that the 
harbor is expected to remain open with safety protocols, such as tow size 
restrictions and daylight-only movements. 

   "More rain is expected in the area this week, which will make the situation 
dynamic," he added. "The situation will certainly delay delivery of barges out 
of St. Louis."

   Russell said that the Ohio and Lower Mississippi Rivers are currently in 
good shape without any delays to traffic.

   "Long-term November to December forecasts call for normal precipitation in 
the Northern-tier states and above normal for Midwest and South," said Russell. 
"If rain forecasts hold true, the river systems could remain charged at higher 
stages for the next few months."  

   Should the locks remain closed if high-water conditions continue or if the 
locks become damaged, final dates for barges leaving the Upper Mississippi 
River ahead of the winter closure could become an issue. Nov. 18 is the final 
departure date for barges to leave St. Paul, Minnesota, and pass through MM640 
north of Prairie Du Chien, Wisconsin. As of Nov. 25, all barges must be through 
MM521 south of Dubuque, Iowa.

   Mary Kennedy can be reached at mary.kennedy@dtn.com 

   Follow her on Twitter @MaryCKenn

******************************************************************************
It's in the Bag: Extra Grain Storage Needed This Crop Year

   It's not very often you see wheat stored in silo bags in farmers' fields and 
outside elevators in North Dakota. In fact, some farmers and elevators actually 
loaded wheat out of bins and put it in silo bags to make room for their soybean 
harvest because they have lost their new-crop market that normally ships to the 
PNW. Because of the current trade war, the only home for soybeans is either a 
processing plant or heading south to the Gulf or St. Louis. However, that 
market could fill up fast with the added traffic, leaving soybeans homeless.

   Storing any grain in silo bags requires the grain is as dry as possible 
before storing it. While silo bags are sealed, they can leak if there are any 
tears or punctures in the plastic and/or if the bags are stored on wet ground. 
If animals break in to the bags, moisture could get in and spoil the grain.

   It's not just North Dakota looking for extra storage. Elevators and farmers 
in the Midwest have been getting creative in finding storage space such as 
renting empty warehouses, adding concrete slabs, then adding aeration and 
covering the pile. Some farmers are even using machine sheds on the farm. It's 
pretty much the "any port in the storm" theory this year.

   In the case of the farmer, storage costs this crop year will increase. Their 
local elevator may increase the cost of delayed price (DP) contracts, if that 
elevator will even issue one this harvest. A DP contract allows the producer to 
establish a final price at a later date. DP contracts usually have service fees 
based on length of contract, space availability, rail performance and market 
conditions. Once delivery is made to the elevator, title of grain passes to the 
buyer and has no price protection. DP contracts are not considered "storage" or 
issued a warehouse receipt. This contract is also referred to as NPE, no price 
established, or PL, price later.

   A shuttle loader in North Dakota told me he has heard of "some pretty high 
DP charges in southern Minnesota and further, with large drop charges (flat 
fee) of 20 cents per bushel." At his elevator, during harvest, soybeans and 
corn will be cash or basis only, while one of his stations has some room for DP 
at 5 cents per month, but farmers need to call ahead.

   At Sun Prairie Grain in Minot, North Dakota, their website posts a soybean 
DP charge of 8 cents per month with no minimum until July 31, 2019. They also 
offer DP on sunflowers, but of their seven locations, only one location is 
taking any DP at this time. Wheat, corn and all other commodities are cash only.

   Valley Ag Partners, with five locations in western Minnesota near the North 
Dakota border, posts on their website that their storage charge for soybeans is 
a flat fee of 10 cents per bushel and then 5 cents per month after that.

   Minn-Kota Ag Products in Brekenridge, Minnesota, also near the North Dakota 
border with five locations, has posted this on their website:

   "MKAP's 2018 Soybean Storage Program is effective September 10, 2018.

   *10 days free storage from date of delivery.

   *$0.15 minimum charge through December 1, 2018 (flat charge from 10 days 
post-delivery through Dec 1, 2018)

   *$0.07/month after December 1, 2018 until beans are sold

   *For example, beans delivered October 5, 2018 and sold on January 1, 2019 
would have a total storage of $0.22 ($0.15 minimum + $0.07 = $0.22)."

   The Arthur Companies, Arthur, North Dakota, with seven locations in North 
Dakota said this in their harvest letter posted on their website concerning 
soybeans:

   "We have little recourse for (soybean) shipments in the near-term. The Gulf 
market is a possibility, but there is a "wall" of soybeans to get past if we 
want to ship down there, and transportation costs are not conducive for 
favorable sales values (the reason we don't typically ship down there). To 
start harvest we will be running a price-later program for soybeans. We will be 
charging 8-cents/month with no minimum charges. This is higher than our typical 
5-cents/month charges. We want to be as fair as possible. With large futures 
carries, uncertainty of future shipments, a finite amount of bin space, and 
incurred costs of piling and bunkering beans we believe this to be an equitable 
storage program for this fall. If/when the marketplace resets we will readjust 
DP grain programs."

   Farmers need to check with their local elevator before they haul any grain 
in they may want to place on a DP contract, to be sure space is still available.

   FARMERS FACE FINANCIAL UNCERTAINTY

   I asked George B. Sinner, senior vice president ag & business banking, 
Cornerstone Bank, Fargo, North Dakota, about the storage situation and 
uncertainty facing farmers this crop year.

   "Regarding storage, my experience is that most lenders will extend operating 
loans based on inventory being stored," said Sinner. "In most cases, the farmer 
will take a CCC loan on farm stored bushels, giving the operating lender some 
comfort that the bushels are there. Most prudent lenders will likely require 
that CCC loan proceeds be used to pay down the operating loan but those same 
lenders will often release some funds for expenses." 

   Sinner said he thinks there will be a great deal of consternation over 
proceeds this year (and next) "as farmers come to realize that there won't be 
enough funds to cover all the bills. I have encouraged our lenders to meet with 
farmers as soon as possible so that we can develop a plan."

   On another note, Sinner pointed out that Dr. Frayne Olson at NDSU Extension 
put together a great spreadsheet to analyze the costs of storage, how much 
"carry in the market" or "rise in the price" the farmer will need to come out 
even. https://www.ag.ndsu.edu/farmmanagement/tools

   Sinner said at the conference he attended where Olson spoke, Olson made it 
pretty clear to a group of bankers there are not many options this year and 
storing corn and beans could very likely cost the farmer more money than 
selling now.

   If you look at the current DTN soybean basis map and the daily DTN national 
average soybean basis, you will see soybean basis is at its weakest level in at 
least 11 years. Moreover, since soybean harvest is not in full swing yet due to 
weather delays, that basis could weaken even further as harvest pressure sets 
in and end users get their fill.

   "The long and short is (in my opinion) that today's farmers need 1) A risk 
management plan that fully understands their costs and breakevens; and 2) 
Professional marketing adviser that works with them daily," said Sinner. 

   "Today's farmer could be going into an extended period of low prices where 
best management practices will be the key to survival."

   Mary Kennedy can be reached at mary.kennedy@dtn.com 

   Follow her on Twitter @MaryCKenn

******************************************************************************
DDG Prices Slightly Lower 

   OMAHA (DTN) -- Distillers dried grains spot prices from the 40 locations DTN 
contacted were mixed, but on average $1 per ton lower at $133 per ton versus 
one week ago for the week ended Oct. 4. 

   Based on the average of prices collected by DTN, the value of DDG relative 
to corn for the week ended Oct. 4 was at 101.33%. The value of DDG relative to 
soybean meal was at 43.13%. The cost per unit of protein for DDG was $4.93, 
compared to the cost per unit of protein for soybean meal at $6.49. Some 
maintenance shutdowns are keeping supplies in balance with demand so far, and 
prices remain range-bound. Wednesday's EIA report showed weekly ethanol 
production for the week ended Sept. 28 was down from the prior week.

   In their weekly distillers dried grains with solubles (DDGS) price update, 
U.S. Grains Council noted, "DDGS prices are mixed this week. On average, prices 
for 40-foot containers to Southeast Asia were up $3/metric ton (MT) for October 
delivery, with containers to Vietnam seeing the largest increase (+$6/MT). 
Container rates to Japan were steady. DDGS at the Gulf fell $1/MT from last 
week to $185/MT while indications for rail-delivered Pacific Northwest fell 
$3/MT. This week, merchandisers reported a general pickup in demand from Asia, 
with sales reported to Southeast Asian markets Indonesia and Thailand."

   The U.S. Census Bureau said Friday that U.S. exports of DDGS totaled 
1,155,961 MT in August, up 52% from a year ago. Mexico, South Korea, and 
Vietnam were the top three destinations in August, accounting for 35% of the 
total. The first eight months of U.S. DDGS exports were up 9% in 2018 from a 
year ago.


ALL PRICES SUBJECT TO CONFIRMATION       CURRENT     PREVIOUS CHANGE
                                                      9/27/
COMPANY   STATE                         10/4/2018      2018
Bartlett and Company, Kansas City, MO (816-753-6300)
          Missouri         Dry             $145        $145     $0
                           Modified        $75         $75      $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
          Missouri         Dry             $145        $145     $0
                           Wet             $75         $75      $0
CHS, Minneapolis, MN (800-769-1066)
          Illinois         Dry             $140        $140     $0
          Indiana          Dry             $132        $132     $0
          Iowa             Dry             $130        $130     $0
          Michigan         Dry             $140        $140     $0
          Minnesota        Dry             $130        $130     $0
          North Dakota     Dry             $130        $130     $0
          New York         Dry             $155        $155     $0
          South Dakota     Dry             $130        $130     $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
          Kansas           Dry             $142        $140     $2
POET Nutrition, Sioux Falls, SD (888-327-8799)
          Indiana          Dry             $128        $132    -$4
          Iowa             Dry             $127        $130    -$3
          Michigan         Dry             $139        $142    -$3
          Minnesota        Dry             $130        $132    -$2
          Missouri         Dry             $143        $147    -$4
          Ohio             Dry             $135        $138    -$3
          South Dakota     Dry             $130        $130     $0
United BioEnergy, Wichita, KS (316-616-3521)
          Kansas           Dry             $135        $135     $0
                           Wet             $55         $55      $0
          Illinois         Dry             $148        $148     $0
          Nebraska         Dry             $135        $135     $0
                           Wet             $55         $55      $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
          Illinois         Dry             $130        $130     $0
          Indiana          Dry             $130        $130     $0
          Iowa             Dry             $125        $125     $0
          Michigan         Dry             $135        $130     $5
          Minnesota        Dry             $125        $120     $5
          Nebraska         Dry             $135        $135     $0
          New York         Dry             $140        $140     $0
          North Dakota     Dry             $140        $145    -$5
          Ohio             Dry             $125        $125     $0
          South Dakota     Dry             $125        $125     $0
          Wisconsin        Dry             $130        $125     $5
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
          Indiana          Dry             $135        $135     $0
          Iowa             Dry             $130        $130     $0
          Minnesota        Dry             $130        $130     $0
          Nebraska         Dry             $130        $130     $0
          Ohio             Dry             $135        $135     $0
          South Dakota     Dry             $125        $125     $0
          California                       $187        $187     $0
Western Milling, Goshen, California (559-302-1074)
          California       Dry             $195        $197    -$2
*Prices listed per ton.
          Weekly Average                   $133        $134    -$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.

             VALUE OF DDG VS. CORN & SOYBEAN MEAL
               Settlement Price: Quote Date   Bushel Short Ton
                            Corn   10/4/2018 $3.6750   $131.25
                    Soybean Meal   10/4/2018 $308.40
   DDG Weekly Average Spot Price     $133.00
                      DDG Value Relative to:  10/4     9/27
                                        Corn 101.33%   102.86%
                                Soybean Meal  43.13%    43.48%
                   Cost Per Unit of Protein:
                                         DDG   $4.93     $4.96
                                Soybean Meal   $6.49     $6.49
Notes:
Corn and soybean prices take 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 27.

   Mary Kennedy can be reached at mary.kennedy@dtn.com

   Follow her on Twitter @MaryCKenn

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