DDG Weekly Update
Mary Kennedy 11/17 12:50 PM
OMAHA (DTN) -- The DTN average dried distillers grains (DDG) spot price from the 39 locations DTN collects bids from was $124 for the week ended Nov. 16, 7 cents higher from the prior week.
Merchandisers noted that markets have been climbing higher with the arrival of seasonal demand, which is catching some plants a little short of product. That is also due in part to the renewal of shipments to Vietnam after the fumigation issue was resolved in September, a market that exporters had been unable to partake in since one year ago.
Based on the average of bids collected by DTN, the value of DDG relative to corn for the week ended Nov. 16 was at 103.18%, and the value of DDG relative to soybean meal was at 39.94%. The cost per unit of protein for DDG was $4.59, compared to the cost per unit of protein for soybean meal at $6.54.
CIF NOLA (New Orleans, Louisiana) prices for November were at $150 to $155 per ton and December was at $152 to $156. Barges are in the process of heading south from the UMR to get downriver before locks start to close for the winter. Barges leaving St. Paul and south of there (MM857-MM640) need to be on their way by Sunday, Nov. 19, to make it past the final lock where the river closes for the winter. The last barges leaving the southern UMR down to MM240, need to be moving by Dec. 3.
The U.S. Grains Council (USGC) reported that shipping containers containing 7,850 metric tons of U.S. distillers dried grains with solubles (DDGS) arrived into the Port of Ho Chi Minh City, Vietnam, between Oct. 25 and Nov. 10, 2017, among the first orders filled following a September announcement by the Vietnamese government that it would lift its suspension of DDGS imports and ease fumigation requirements for U.S. corn and wheat imports. Manuel Sanchez, USGC regional director for South and Southeast Asia, was on site as the containers of U.S. DDGS arrived.
The containers were among the first to arrive in Vietnam following the government lifting a suspension put in place in October 2016.
"We are glad to see the first shipment and arrival of U.S. DDGS back into the Vietnamese market," said Sanchez. "The Council collaborated closely with our own government, the Vietnamese government and industries in both countries to resolve this trade disruption."
Last week, DDGS imports into China saw a bit of good news when China's Ministry of Foreign Affairs said they would allow U.S. distillers dried grains with solubles (DDGS) to be imported without charging an 11% value added tax (VAT). While the VAT has been removed, the anti-dumping and countervailing duties remain, but shippers agree that this news may be one small step toward China possibly easing up on the current penalties.
Mary Kennedy can be reached at firstname.lastname@example.org
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