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Market Matters Blog           01/19 11:15
DDG Prices Remain Strong
DDG Prices Climb Higher 
Extreme Cold Causes US Rivers to Ice Over
Cold Weather, Tight Supplies Keeps DDG Prices Firm 
DDG Weekly Update: DDG Prices Firm
Soybean Basis Lacking Christmas Spirit
DDG Prices Climb Higher; Export Demand Good
Long Trains Get Longer; Time to Put the Brakes on Size? 
DDG Prices Climb Higher
DDG Prices Higher 

******************************************************************************
DDG Prices Remain Strong

   OMAHA (DTN) -- The DTN average distillers dried grain (DDG) spot price from 
the 39 locations DTN collects bids from was $143 for the week ended Jan. 18, 1 
cent higher than the prior week.

   Based on the average of bids collected by DTN, the value of DDG relative to 
corn for the week ended Jan. 18 was at 113.91%, and the value of DDG relative 
to soybean meal was at 43.54%. The cost per unit of protein for DDG was $5.30, 
compared to the cost per unit of protein for soybean meal at $6.91, 39 cents 
higher versus last week (see chart below) as soymeal prices saw strong gains 
all week. The higher soybean meal price is causing more DDG demand for 
livestock feed rations, further adding support to prices.

   A merchandiser out west told DTN that slow loadings of corn from the Midwest 
and strong values in the Midwest for modified DDG is keeping supplies out to 
the West Coast rather tight. Overall, supplies have been tight due to cold 
weather and plant slowdowns. That may change going forward as the recent EIA 
report showing ethanol plant output topped 1.0 million barrels per day (bpd) 
again after briefly dipping below the mark the week prior and for the first 
time since early October. For the week ending Jan. 12, EIA reported plant 
output up 65,000 bpd to 1.061 million bpd last week. 

   The U.S. Grains Council (USGC) noted in its weekly price update that trade 
volume has been reported as "light" with sellers defending asking prices and 
buyers somewhat unwilling to chase prices higher. Prices for 40-foot containers 
to Southeast Asia are higher again this week, gaining $5 per metric ton (mt) on 
average. February shipments to Myanmar increased the most of any Asian 
destination this week, gaining $7/mt, while shipments to Indonesia and China 
increased $6/mt each, according to USGC.

   CIF (cost, insurance and freight) NOLA (News Orleans, Louisiana) prices were 
stronger from one week ago, but January prices this week have backed off a 
little. This could partially be due to tight supplies as well as the U.S. river 
system still under siege from ice. 

   The Upper Ohio River was closed earlier in the week due to barge breakaways 
over the weekend in that area caused by heavy ice movement. There is still 
limited movement due to ice above the Hannibal Lock, but in the Lower Ohio 
River, Lock 52 and 53 are now open for traffic. The Illinois River is also 
plagued with floating ice, which is causing "significant tow size reduction" 
according to American Commercial Barge Line (ACBL). Also, conditions have 
deteriorated above Hennepin, (MM207) due to low temperatures and ice gorging. 
There is hope a warming trend over the weekend will bring some relief. ACBL 
also noted that there is a reduction in tow size in the Lower Mississippi River 
at MM483-487 due to low water and "lack of a defined channel."


                                               CURRENT      CURRENT     CHANGE
COMPANY    STATE                              1/18/2018    1/11/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
           Missouri             Dry             $160          $160        $0
                                Modified         $80          $80         $0
CHS, Minneapolis, MN (800-769-1066)
           Illinois             Dry             $150          $144        $6
           Indiana              Dry             $150          $145        $5
           Iowa                 Dry             $135          $133        $2
           Michigan             Dry             $155          $150        $5
           Minnesota            Dry             $140          $135        $5
           North Dakota         Dry             $150          $145        $5
           New York             Dry             $170          $160       $10
           South Dakota         Dry             $140          $140        $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
           Kansas               Dry             $150          $150        $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
           Indiana              Dry             $150          $150        $0
           Iowa                 Dry             $130          $130        $0
           Michigan             Dry             $148          $148        $0
           Minnesota            Dry             $130          $130        $0
           Missouri             Dry             $150          $150        $0
           Ohio                 Dry             $148          $148        $0
           South Dakota         Dry             $135          $135        $0
    `               `
United BioEnergy, Wichita, KS (316-616-3521)
           Kansas               Dry             $150          $145        $5
                                Wet              $60          $60         $0
           Illinois             Dry             $155          $150        $5
           Nebraska             Dry             $150          $145        $5
                                Wet              $60          $60         $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
           Illinois             Dry             $150          $150        $0
           Indiana              Dry             $140          $140        $0
           Iowa                 Dry             $135          $135        $0
           Michigan             Dry             $140          $140        $0
           Minnesota            Dry             $130          $130        $0
           Nebraska             Dry             $150          $150        $0
           New York             Dry             $155          $155        $0
           North Dakota         Dry             $145          $145        $0
           Ohio                 Dry             $145          $145        $0
           South Dakota         Dry             $135          $135        $0
           Wisconsin            Dry             $140          $140        $0
Valero Energy Corp, San Antonio, TX (402-932- 5299)
           Indiana              Dry             $140          $140        $0
           Iowa                 Dry             $135          $135        $0
           Minnesota            Dry             $130          $130        $0
           Nebraska             Dry             $145          $145        $0
           Ohio                 Dry             $140          $140        $0
           South Dakota         Dry             $125          $125        $0
           California                           $202          $202        $0
Western Milling, Goshen, California (559-302-1074)
           California           Dry             $212          $212        $0
*Prices listed per ton.
           Weekly Average                       $143          $142        $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      1/18/2018   $3.5150      $125.54
                             Soybean Meal      1/18/2018   $328.40
            DDG Weekly Average Spot Price        $143.00
                                  DDG Value Relative to:   1/18        1/12
                                                    Corn   113.91%      114.00%
                                            Soybean Meal    43.54%       45.87%
                               Cost Per Unit of Protein:
                                                     DDG     $5.30        $5.26
                                            Soybean Meal     $6.91        $6.52
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 Mary Kennedy on Twitter @MaryCKenn

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

   OMAHA (DTN) -- The DTN average distillers dried grain (DDG) spot price from 
the 39 locations DTN collects bids from was $142 for the week ended Jan. 11, 4 
cents higher than two weeks ago.

   Based on the average of bids collected by DTN, the value of DDG relative to 
corn for the week ended Jan. 11 was at 114.00%, and the value of DDG relative 
to soybean meal was at 45.87%. The cost per unit of protein for DDG was $5.26, 
compared to the cost per unit of protein for soybean meal at $6.52.

   Merchandisers noted that the market is higher in part due to tight supplies 
as ethanol plants have been running at a slower pace than normal. The EIA 
reported ethanol plant production in the United States fell 36,000 barrels per 
day (bpd) to a 996,000 bpd three-month low for the week ending Jan. 5. Higher 
drying costs and tight margins have been contributing factors to the slowdown. 

   Merchandisers told me that containers destined for Vietnam in the Midwest 
are still waiting to be fumigated but can't be because of the cold weather. As 
discussed last week, Vietnam requires temperatures (for this time of year) to 
be 50 to 59 degrees Fahrenheit for a minimum exposure period of five days. Also 
extreme ice conditions continue to plague the Illinois River where traffic is 
all but shut down.

   American Commercial Barge Line noted Thursday that limited movement remains 
on the Illinois River with significant tow-size reduction. "The max tow size is 
nine barges below Hennepin and four barges above. One major trouble spot is the 
Marseilles Canal, around mile 245. There is significant ice buildup in this 
area, making it difficult to transit. The Marseilles Lock queue is building, 
currently 12 boats. Based on the current forecast, we don't anticipate 
returning to normal tow size for another 30 days." On top of these issues on 
the Illinois River, tow size southbound from St. Louis to Cairo on the 
Mississippi River has been reduced due to ice and low water conditions.

   The U.S. Grains Council (USGC) said in its weekly price update that barge 
CIF NOLA prices are steady this week while FOB NOLA prices are $2/metric ton 
(MT) lower on light trading volume. "FOB NOLA prices are 124% of FOB NOLA corn 
values, which is at the upper end of the ratio's two-year trading range. Prices 
for 40-foot containers destined for Southeast Asia are $1/MT higher on average, 
but with light trading volume."


                                       CURRENT  CURRENT CHANGE
                                                1/11/
COMPANY                 STATE                   2018    1/4/2018
Bartlett and Company, Kansas City, MO (816-753-6300)
                        Missouri       Dry      $160    $165     -$5
                                       Modified $80     $82      -$2
CHS, Minneapolis, MN (800-769-1066)
                        Illinois       Dry      $144    $142     $2
                        Indiana        Dry      $145    $140     $5
                        Iowa           Dry      $133    $130     $3
                        Michigan       Dry      $150    $145     $5
                        Minnesota      Dry      $135    $130     $5
                        North Dakota   Dry      $145    $145     $0
                        New York       Dry      $160    $155     $5
                        South Dakota   Dry      $140    $137     $3
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
                        Kansas         Dry      $150    $150     $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
                        Indiana        Dry      $150    $145     $5
                        Iowa           Dry      $130    $128     $2
                        Michigan       Dry      $148    $140     $8
                        Minnesota      Dry      $130    $128     $2
                        Missouri       Dry      $150    $142     $8
                        Ohio           Dry      $148    $145     $3
                        South Dakota   Dry      $135    $135     $0
`                       `
United BioEnergy, Wichita, KS (316-616-3521)
                        Kansas         Dry      $145    $140     $5
                                       Wet      $60     $65      -$5
                        Illinois       Dry      $150    $148     $2
                        Nebraska       Dry      $145    $140     $5
                                       Wet      $60     $65      -$5
U.S. Commodities, Minneapolis, MN (888-293-1640)
                        Illinois       Dry      $150    $140     $10
                        Indiana        Dry      $140    $130     $10
                        Iowa           Dry      $135    $130     $5
                        Michigan       Dry      $140    $135     $5
                        Minnesota      Dry      $130    $125     $5
                        Nebraska       Dry      $150    $145     $5
                        New York       Dry      $155    $140     $15
                        North Dakota   Dry      $145    $145     $0
                        Ohio           Dry      $145    $135     $10
                        South Dakota   Dry      $135    $135     $0
                        Wisconsin      Dry      $140    $130     $10
Valero Energy Corp., San Antonio, TX (402-932-5901)
                        Indiana        Dry      $140    $135     $5
                        Iowa           Dry      $135    $130     $5
                        Minnesota      Dry      $130    $125     $5
                        Nebraska       Dry      $145    $145     $0
                        Ohio           Dry      $140    $135     $5
                        South Dakota   Dry      $125    $125     $0
                        California              $202    $200     $2
Western Milling, Goshen, California (559-302-1074)
                        California     Dry      $212    $206     $6
*Prices listed per ton.
                        Weekly Average          $142    $138     $4
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                                                              1/11/2018   $3.4875       $124.55
Soybean Meal                                                      1/11/2018   $309.60
DDG Weekly Average Spot Price                                     $142.00
DDG Value Relative to:                                                        1/12          1/4
Corn                                                                          114.00%       110.08%
Soybean Meal                                                                  45.87%        43.70%
Cost Per Unit of Protein:
DDG                                                                           $5.26         $5.11
Soybean Meal                                                                  $6.52         $6.65
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 Mary Kennedy on Twitter @MaryCKenn

******************************************************************************
Extreme Cold Causes US Rivers to Ice Over

   The only place where frozen bodies of water are a good thing this time of 
year is in the Upper Midwest where many of us Northerners enjoy the winter 
ritual of ice fishing. Icing on the U.S. river system, however, is not a 
welcome sight, as it causes delays and dangerous conditions for tows pushing 
barges trying to move commodities downriver to the Gulf of Mexico for export.

   The severe cold spell that gripped most of the country the past week caused 
the Illinois River to ice over. On Jan. 5, Tom Russell, of Russell Marine 
Group, told me that barge traffic on the Illinois River is all but stopped due 
to ice. "A couple of barge lines are still trying to move without much success. 
As traffic stops, the ice gorges get worse without movement to break and push 
the ice along." 

   American Commercial Barge Line (ACBL) noted in its daily river update that, 
"Operations have ceased due to heavy ice throughout the river. Boats are moving 
to find the closest safe harbor until conditions improve. Based on the 10-day 
forecast, conditions will continue to deteriorate."

   ACBL also noted that on the Upper Ohio River, there was minimal movement due 
to ice above Montgomery Lock. On top of that, the U.S. Army Corps of Engineers 
(USACE) closed Lock 52 on the lower Ohio to raise the wickets, noting they 
believe this process will take around four days. The river is expected to open 
Sunday or Monday. According to the USACE, during low water, "the gates must be 
raised individually to impound water, creating a navigable depth from Locks and 
Dam 52 to Smithland Locks and Dam, Kentucky Lake and Lake Barkley."

   Russell also said, "Locks on the Upper Mississippi just above St. Louis are 
icing, causing locking delays. Tow size restrictions have been implemented for 
tows locking through. The Upper Mississippi River from St. Louis to Cairo is 
seeing ice flows along the corridor. Also, that stretch of river is 
experiencing low water levels. Boat traffic is moving very slowly due to ice 
and low water. 

   "A tow has gone aground at mile 47 (north of Thebes, Illinois) whereby only 
limited traffic can pass until refloated," added Russell. "Water levels from 
St. Louis to Cairo are expected to continue to drop over the next couple weeks. 
Further restrictions may have to be implemented."

   Because of the icing and low water conditions along most of the U.S. river 
system, barge freight rose mid-week, and soybean and corn basis was higher at 
the Gulf, as loaded barges have been unable to get there on time. According to 
the USDA weekly transportation report, "With the cold temperatures and icy 
conditions, grain barge rates, as of Jan. 2, rose 15% for export grain on the 
Illinois River and 9% on the Mississippi River at St. Louis compared to the 
prior week."

   Even if the ice conditions improve, which may take some time, the low water 
levels will exist until the river system can refresh. On Jan. 5, the 
Mississippi River at St. Louis was 1.73 feet below zero gauge and was not 
expected to rise above minus 1.3 feet before Jan. 18 and maybe later. At 
Memphis, the Mississippi River is currently at 4.86 feet on Jan. 5, but 
expectations from the National Weather Service (NWS) are that without any 
moisture in the next week, levels will fall to 1.5 feet below zero gauge by 
Jan. 18.

   While barge traffic is normally lighter now than it is during the summer and 
fall months, there are still commodities that need to get to the Gulf on time 
for existing contracts to be filled. Low-water conditions can cause barge 
drafts to be lightened, meaning less product can be loaded and possibly reduce 
the number of barges a tow can move. The danger of low water is grounding, as 
noted above, and when that happens, the grounded barges need to be safely 
removed before traffic can move forward.

   On top of the icing currently affecting river traffic, low-water conditions 
only exacerbate the issues for elevators trying to load out and barge lines 
trying to get empty barges upriver and full barges down to the Gulf.

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

   Follow Mary Kennedy on Twitter @MaryCKenn 

******************************************************************************
Cold Weather, Tight Supplies Keeps DDG Prices Firm 

   OMAHA (DTN) -- The DTN average distillers dried grain (DDG) spot price from 
the 39 locations DTN collects bids from was $138 for the week ended Jan. 4, 4 
cents higher than two weeks ago. 

   Based on the average of bids collected by DTN, the value of DDG relative to 
corn for the week ended Jan. 4 was at 110.08%, and the value of DDG relative to 
soybean meal was at 43.70%. The cost per unit of protein for DDG was $5.11, 
compared to the cost per unit of protein for soybean meal at $6.65.

   Merchandisers noted that the market is higher in part due to the demand from 
the extreme cold blanketing much of the U.S. Also, because of the cold weather, 
the natural gas prices have spiked, causing plants to slow run times. Natural 
gas is what plants use to run their dryers and with weak margins, many plants 
are slowing down a little, and in turn, are not producing as much dry product 
that is needed to meet the demand right now.

   The U.S. Grains Council (USGC) said in its weekly price update that 
internationally, FOB Gulf prices are steady on holiday-reduced demand. "The 
average price for January shipment is $203/metric ton with February shipments 
$3/MT lower. Prices for March shipment are just under $200/MT as DDGS supplies 
should increase heading into the spring. Prices for 40-foot containers to 
Southeast Asia are $226.5/MT, $3 above the pre-holiday (Dec. 21, 2017) weekly 
average. Merchandisers are reporting prices to Vietnam are the strongest of 
Asian destinations, rising $6/MT from Dec. 21."

   However, merchandisers told me that there are containers out east just 
sitting, unable to be shipped because of the snow and cold weather. One of the 
main issues is that the due to the temperatures being below freezing the past 
week in the southeast, containers cannot be fumigated because it is too cold. 
Vietnam requires temperatures (for this time of year) to be 50 to 59 degrees 
Fahrenheit for a minimum exposure period of five days.


                                       CURRENT  CURRENT        CHANGE
                                                 1/4/    12/21/
COMPANY                STATE                     2018     2017
Bartlett and Company, Kansas City, MO (816-753-6300)
                       Missouri       Dry        $165     $150              $15
                                      Modified    $82     $75               $7
CHS, Minneapolis, MN (800-769-1066)
                       Illinois       Dry        $142     $140              $2
                       Indiana        Dry        $140     $138              $2
                       Iowa           Dry        $130     $128              $2
                       Michigan       Dry        $145     $140              $5
                       Minnesota      Dry        $130     $130              $0
                       North Dakota   Dry        $145     $145              $0
                       New York       Dry        $155     $135              $20
                       South Dakota   Dry        $137     $137              $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
                       Kansas         Dry        $150     $145              $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
                       Indiana        Dry        $145     $130              $15
                       Iowa           Dry        $128     $125              $3
                       Michigan       Dry        $140     $130              $10
                       Minnesota      Dry        $128     $125              $3
                       Missouri       Dry        $142     $140              $2
                       Ohio           Dry        $145     $130              $15
                       South Dakota   Dry        $135     $135              $0
          `                  `
United BioEnergy, Wichita, KS (316-616-3521)
                       Kansas         Dry        $140     $140              $0
                                      Wet         $65     $65               $0
                       Illinois       Dry        $148     $148              $0
                       Nebraska       Dry        $140     $140              $0
                                      Wet         $65     $65               $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
                       Illinois       Dry        $140     $140              $0
                       Indiana        Dry        $130     $130              $0
                       Iowa           Dry        $130     $130              $0
                       Michigan       Dry        $135     $125              $10
                       Minnesota      Dry        $125     $118              $7
                       Nebraska       Dry        $145     $145              $0
                       New York       Dry        $140     $140              $0
                       North Dakota   Dry        $145     $145              $0
                       Ohio           Dry        $135     $135              $0
                       South Dakota   Dry        $135     $125              $10
                       Wisconsin      Dry        $130     $130              $0
Valero Energy Corp., San Antonio, TX (402-932-5901)
                       Indiana        Dry        $135     $125              $10
                       Iowa           Dry        $130     $125              $5
                       Minnesota      Dry        $125     $120              $5
                       Nebraska       Dry        $145     $140              $5
                       Ohio           Dry        $135     $135              $0
                       South Dakota   Dry        $125     $120              $5
                       California                $200     $195              $5
Western Milling, Goshen, California (559-302-1074)
                       California     Dry        $206     $208              -$2
*Prices listed per ton.
                       Weekly Average            $138     $134              $4
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    1/4/2018       $3.5100    $125.36
                                                     Soybean Meal    1/4/2018      $315.80
                                    DDG Weekly Average Spot Price     $138.00
                                                       DDG Value Relative to:      1/5        12/21
                                                                         Corn       110.08%    106.81%
                                                                 Soybean Meal        43.70%     42.65%
                                                    Cost Per Unit of Protein:
                                                                          DDG         $5.11      $4.96
                                                                 Soybean Meal         $6.65      $6.61
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 Mary Kennedy on Twitter @MaryCKenn 

******************************************************************************
DDG Weekly Update: DDG Prices Firm

   OMAHA (DTN) -- The DTN average distillers dried grain (DDG) spot price from 
the 39 locations DTN collects bids from was $134 for the week ended Dec. 21, 1 
cent higher than one week ago. 

   Based on the average of bids collected by DTN, the value of DDG relative to 
corn for the week ended Dec. 21 was at 106.81%, and the value of DDG relative 
to soybean meal was at 42.65%. The cost per unit of protein for DDG was $4.96, 
compared to the cost per unit of protein for soybean meal at $6.61.

   Merchandisers noted that while the market is still firm, prices have "calmed 
down" a bit from prior weeks. As Christmas and the New Year's holidays get 
closer, production may slow along with end users wanting to buy enough product 
to stay covered in front of the long weekend and the upcoming holiday week. 

   The U.S. Grains Council (USGC) said in their weekly price update that DDGS 
CIF NOLA barge prices fell this week, even as FOB NOLA DDGS gained $3/metric 
tons to end at $203/MT. "The diverging price trends between these two 
destinations may indicate a period of stability coming for DDGS prices in the 
U.S. FOB NOLA DDGS are valued at 59% of FOB NOLA soybean meal and 130% of FOB 
NOLA corn. DDGS delivered via rail to the PNW ended $3/MT higher at $220 this 
week."

   Barges have been stalled on the river as rock pinnacle removal at Thebes 
continues to stop traffic during daylight hours, seven days a week until the 
work is finished. Also, the Lower Mississippi River (LMR) mile marker (MM) 770 
to 782 was closed earlier in the week when two barges ran aground due to low 
water. Traffic resumed by Thursday after the barges were finally removed and 
the river reopened, but traffic on both sides of the closure was stalled until 
the barges were freed. On top of all of that, drafts have been lowered once 
again from St. Louis to Cairo and now are at 10 feet, 6 inches max after being 
lowered last week to 11 feet due to the low water conditions in the LMR.

   On the international front, Asian prices are firm with active demand for 
nearby shipments. "Some traders are claiming Vietnamese buyers are looking to 
buy January-March shipments. With other Asian prices heading higher, sellers 
are yet unwilling to lower asking prices," said USGC. The average price for 
40-foot containers destined for Southeast Asia reached $222/MT this week, with 
buyers paying $3/MT more on average. Prices for product to Taiwan, Japan and 
Bangladesh led the way, rising $4/MT while all reported destinations increased 
at least $2/MT.


                             CURRENT    PREVIOUS       CHANGE
COMPANY  STATE                         12/21/2017    12/14/2017
Bartlett and Company, Kansas City, MO (816-753-6300)
         Missouri           Dry           $150          $150     $0
                            Modified       $75          $75      $0
CHS, Minneapolis, MN (800-769-1066)
         Illinois           Dry           $140          $135     $5
         Indiana            Dry           $138          $135     $3
         Iowa               Dry           $128          $128     $0
         Michigan           Dry           $140          $130     $10
         Minnesota          Dry           $130          $130     $0
         North Dakota       Dry           $145          $145     $0
         New York           Dry           $135          $134     $1
         South Dakota       Dry           $137          $137     $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
         Kansas             Dry           $145          $140     $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
         Indiana            Dry           $130          $130     $0
         Iowa               Dry           $125          $125     $0
         Michigan           Dry           $130          $130     $0
         Minnesota          Dry           $125          $125     $0
         Missouri           Dry           $140          $140     $0
         Ohio               Dry           $130          $130     $0
         South Dakota       Dry           $135          $135     $0
   `             `
United BioEnergy, Wichita, KS (316-616-3521)
         Kansas             Dry           $140          $140     $0
                            Wet            $65          $65      $0
         Illinois           Dry           $148          $148     $0
         Nebraska           Dry           $140          $140     $0
                            Wet            $65          $65      $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
         Illinois           Dry           $140          $140     $0
         Indiana            Dry           $130          $130     $0
         Iowa               Dry           $130          $130     $0
         Michigan           Dry           $125          $125     $0
         Minnesota          Dry           $118          $118     $0
         Nebraska           Dry           $145          $145     $0
         New York           Dry           $140          $140     $0
         North Dakota       Dry           $145          $145     $0
         Ohio               Dry           $135          $135     $0
         South Dakota       Dry           $125          $125     $0
         Wisconsin          Dry           $130          $130     $0
Valero Energy Corp., San Antonio, TX (402-932-5901)
         Indiana            Dry           $125          $125     $0
         Iowa               Dry           $125          $125     $0
         Minnesota          Dry           $120          $120     $0
         Nebraska           Dry           $140          $140     $0
         Ohio               Dry           $135          $135     $0
         South Dakota       Dry           $120          $120     $0
         California                       $195          $195     $0
Western Milling, Goshen, California (559-302-1074)
         California         Dry           $208          $208     $0
*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  12/21/2017 $3.5125   $125.45
                    Soybean Meal  12/21/2017 $314.20
   DDG Weekly Average Spot Price     $134.00
                      DDG Value Relative to:  12/21    12/14
                                        Corn 106.81%   110.75%
                                Soybean Meal  42.65%    41.40%
                   Cost Per Unit of Protein:
                                         DDG   $4.96     $4.93
                                Soybean Meal   $6.61     $6.76
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 Mary Kennedy on Twitter @MaryCKenn 

******************************************************************************
Soybean Basis Lacking Christmas Spirit

   The DTN national average soybean basis has continued what I call "bottom 
feeding" from the prior crop year. As seen in the attached chart, it currently 
sits at the same level as the minimum five-year average; not quite below it 
like the 2016-17 basis was for most of that crop year, but close.

   On top of plenty of supplies in the U.S., soybeans are facing competition 
from South America, which is apparent in the lagging export shipments versus 
last year at this time. In the latest weekly USDA export sales and shipments 
report on Dec. 14, cumulative soybean shipments were down 13% in 2017-18 from a 
year ago. 

   I talked to a few farmers, elevator managers and grain merchandisers around 
the Midwest and they didn't tell me anything that would make me think that 
chart will change anytime soon.

   "Soybean basis in Michigan continues to be the cheapest it has been for a 
number of years despite a smaller crop in Michigan than last year," said Robert 
Geers, merchandising manager at Michigan Agriculture Commodities. "Overall 
soybean yields were lower than the past two years purely due to a lack of rain 
in August. August rains really make or break a soybean crop in Michigan, and we 
just didn't have rain in August like we have had the past two years, and yields 
suffered. I think the USDA is pretty close on their estimates at 45 bushels per 
acre, which is down from 50.5 bpa last year." 

   "Soybean yields were slightly above average and down from last year in our 
area, but we did have a few more acres of soybeans than last year as well, so I 
would say the total production is probably similar to last year," said Ryan 
Wagner, Wagner Farms of Rosyln, South Dakota. "We typically see a post-harvest 
pop in basis and that happened again this year as it has narrowed up $0.15 to 
$0.20 since bids were rolled from X (November) to F (January) in late October. 
Even with the basis improvement, cash bids are still right around -100F, which 
is about like we saw last year at this time. I would say demand is steady as we 
are highly dependent on rail moving beans to the PNW, so hopefully we can stay 
away from a big blizzard delay. With the flat price drop lately and corn not 
going anywhere, I think guys are content to keep their beans in storage for now 
and see what happens after the first of the year." 

   Mark Rohrich of Maverick Ag, Ashley, North Dakota, agrees that overall, 
soybean basis is disappointing. "The typical basis at the elevator we go to is 
-0.90 but currently today is at -1.05. But reality is, if the beans are in a 
bin, a futures rally or basis increase will be what it takes to bring them to 
market or get them sold into future months. Right now, most grain is sitting 
pretty tight. Our soybean crop was boosted by late rain to a good crop. Better 
than we were expecting most of the summer. Not as good as 2016 soybeans but 
decent, and in the area, soybeans were all over the board. Soil moisture from 
previous year's crop made a difference in this year's. Wheat, then soybeans did 
better than beans on beans or soybeans on corn ground."

   In southeastern North Dakota, Keith Brandt, general manager of Plains Grain 
and Agronomy in Enderlin, said soybean basis in his neck of the woods has been 
from -90 to -115 since the beginning of harvest. "I don't see much of an 
improvement in basis until maybe into summer, but competition for beans from 
the river might help. There are expectations of possibly a short crop out of 
South America that may get the Chinese to cover more, but there is too much of 
a world supply to get anyone to push it now. Our bean crop did better than most 
expected with southeast North Dakota in the 40 to 42 bpa compared to around 50 
bpa last year. NASS statewide yields of 36 is close."

   Another elevator manager in eastern North Dakota told me that they had a 
"normal" crop yield of 38 to 39 bpa. He told me that if futures want to range 
in the $9.00 to $10.00 area, it's hard to see any big basis changes in the 
works. "Feels like the -.95 basis in the country is the -.75/.80 of old. We 
have heard that recent trades off the PNW are in the low .70s FOB the spout. 
Their bids the past few weeks to the country went from the upper .70s to now 
mid .80s. Not sure how they could pay more doing low .70 business....."

   Troy Presley, senior grain merchandiser for CoMark Equity Alliance (CEA) 
told me basis has been very weak the last couple years versus tributary markets 
in his area. CEA consists of 160 country elevators that touches four states: 
Kansas, Oklahoma, Nebraska and Texas. 

   "The weak basis the last couple years versus tributary markets in my opinion 
is due to excess supply tributary to the end users," he said. "Crush plants 
here in the west don't have the competition of export/other end users like they 
do back east. Rail spreads for YSB in Kansas and Oklahoma are very poor. The 
railroads have zero interest in implementing any kind of competitive rate on 
yellow soybeans. Moving beans to the closest river facility is possible, just 
not in large enough quantities." 

   He told me crop rotation has encouraged a very large number of wheat acres 
to be double cropped back to yellow soybeans. "This is giving us some of the 
largest receipts of YSB we have seen in a recent memory; most likely a record." 

   Presley said, "We have to remember basis is the local supply and demand 
facilitator. As frustrating as is it to have cheap basis, the amount of yellow 
soybeans being harvested in this part of the country is unprecedented and the 
market needs to find a way to work through them. It would greatly help if the 
railroad would implement competitive rates on yellow soybeans to help move the 
excess. Until that happens, I'm afraid we will be subject to the crush plants 
being opportunistic buyers." 

   Roger Gattis specializes in grain merchandising at White Commercial 
Corporation and said, "In many markets, the soybean basis has experienced its 
traditional post-harvest pop and enough of a pop that many elevators with good 
harvest basis ownership levels are selling and taking profit. In many 
instances, the basis margins seen in beans this crop year are the best in many 
years, if not ever. A big part of that is the extreme pressure that harvest 
basis experienced this year. This has been less true the further east you go, 
as North Carolina, Virginia and Georgia have yet to really experience such 
movement."

   "Since the carry in the bean futures market doesn't really pay you much over 
costs to carry beans very far into the marketing year, many merchandisers are 
taking profits now, rather than tread water for several months just to be able 
to sell at equivalent cost adjusted levels."

   SUPPLIES COMFORTABLE AMID SLOWING EXPORT DEMAND

   DTN Analyst Todd Hultman said the weak basis in soybeans is related to a 
comfortable level of supplies here in the U.S. "USDA is estimating 445 million 
bushels of ending stocks for 2017-18, the most in 11 years as both Brazil and 
the U.S. have had five big consecutive soybean harvests each. As we have seen 
in the past few years, Brazil continues to be an aggressive exporter to the 
point where USDA expects them to end their current season with only 145 million 
bushels of soybeans on Jan. 31. FOB soybean prices are 33 cents a bushel 
cheaper at the U.S. Gulf than at Brazil's port in Paranagua, which would 
normally translate to more export business for the U.S.

   "The odd thing this season is that U.S. soybean shipments are down 13% in 
2017-18 from a year ago, and I suspect China is sitting back, waiting to see 
how the next round of South American crops fare. As long as no serious weather 
threat emerges down south, this slower-than-expected export pace is apt to 
continue, and that will keep the soybean basis weak into early 2018," concluded 
Hultman.

   "Weak demand is what is causing the cheap basis levels in Michigan," said 
Geers."As a state, we have to export 80% of our soybean production by rail 
because we have very little processing demand in and around Michigan. Most of 
the rail beans we export go to the Gulf or East Coast for exports to China. The 
problem is that China has not been buying the amount of soybeans the USDA has 
forecasted for this crop year, causing export values to be cheaper than normal, 
which backs up to cheap basis levels in Michigan. 

   "Truck demand has been steady in our area, but demand isn't strong enough to 
reduce the number of beans we need to rail out. Unless Chinese demand picks up, 
soybean basis values in Michigan will continue to stay weak compared to 
historical values. The window for the U.S. to export beans is narrowing," added 
Geers. 

   With the U.S. typically competitive through March when South America fills 
the Chinese demand April forward, Geers said it will be very difficult for the 
U.S. to meet the USDA's projections at the current pace as the shipping window 
narrows.

   Another elevator manager in eastern North Dakota pointed out it's nearly 
January and South America is still, for the most part, the best bid with bean 
inventory to burn and a harvest only a month or so away. "Now day's there isn't 
much of a window for the U.S. to be the only place to go for beans anymore, 
unlike just a few years ago when China was waiting on our harvest to start in 
September/October." 

   Wagner pretty much summed up the current picture for soybeans saying, "Basis 
giveth, futures taketh away, big carries ... same old story." 

   Bah Humbug.

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

   Follow Mary Kennedy on Twitter @MaryCKenn

******************************************************************************
DDG Prices Climb Higher; Export Demand Good

   OMAHA (DTN) -- The DTN average distillers dried grain (DDG) spot price from 
the 39 locations DTN collects bids from was $133 for the week ended Dec. 14, 2 
cents higher than two weeks ago. 

   Based on the average of bids collected by DTN, the value of DDG relative to 
corn for the week ended Dec. 14 was at 110.75%, and the value of DDG relative 
to soybean meal was at 41.40%. The cost per unit of protein for DDG was $4.93, 
compared to the cost per unit of protein for soybean meal at $6.76.

   Merchandisers noted that supplies are not as tight as the prior week, but 
demand remains firm, especially at the Gulf. One merchandiser noted that, as of 
midweek, Gulf values had gone up 4-5 cents and the value of distillers dried 
grain with solubles (DDGS) at the Gulf relative to corn was 125%.

   Some of that strength in prices could be related to the recent problems on 
the Ohio River, which closed last week again at Lock 52, but did reopen Dec. 10 
with 39 vessels still waiting to lock through. Then, on the morning of Dec. 14, 
the river closed north of Lock 52 at Olmsted for 36 hours, further causing 
delays. Added to that, low water down in the Memphis corridor pushed barge 
freight higher there as drafts are cut to 11 feet. The Mississippi River at 
Memphis was -1.42 below zero gauge Dec. 14. 

   The U.S. Grains Council (USGC) said in their weekly price update that, on a 
per-protein unit basis, DDGS are cheaper than soybean meal. "Rising soybean 
meal prices have increased demand for DDGS in feed rations, but a weaker soy 
complex may push some DDGS from domestic use to international destinations." 

   Prices for 40-foot containers of DDGS to Southeast Asia are stronger this 
week, noted USGC, though gains were more muted than those in the FOB Gulf 
market which reached levels not seen since July 2016. DDGS CIF Southeast Asia 
averaged $219 per metric ton (mt) this week, up $4 from last week. Product 
destined for Bangladesh (up $6/mt) and Myanmar (up $5/mt) experienced the 
largest price increases, while other destinations reported $3-$4/mt gains. 
"Some merchandisers are hearing strong buying interest from Vietnam, where 
prices rose $3/mt this week," added USGC.


                                              CURRENT       PREVIOUS    CHANGE
COMPANY   STATE                              12/14/2017    12/7/2017
Bartlett and Company, Kansas City, MO (816-753-6300)
          Missouri             Dry              $150          $148        $2
                               Modified         $75           $73         $2
CHS, Minneapolis, MN (800-769-1066)
          Illinois             Dry              $135          $130        $5
          Indiana              Dry              $135          $130        $5
          Iowa                 Dry              $128          $125        $3
          Michigan             Dry              $130          $120       $10
          Minnesota            Dry              $130          $128        $2
          North Dakota         Dry              $145          $140        $5
          New York             Dry              $134          $132        $2
          South Dakota         Dry              $137          $137        $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
          Kansas               Dry              $140          $140        $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
          Indiana              Dry              $130          $125        $5
          Iowa                 Dry              $125          $120        $5
          Michigan             Dry              $130          $125        $5
          Minnesota            Dry              $125          $120        $5
          Missouri             Dry              $140          $140        $0
          Ohio                 Dry              $130          $125        $5
          South Dakota         Dry              $135          $130        $5
United BioEnergy, Wichita, KS (316-616-3521)
          Kansas               Dry              $140          $142       -$2
                               Wet              $65           $55        $10
          Illinois             Dry              $148          $144        $4
          Nebraska             Dry              $140          $142       -$2
                               Wet              $65           $55        $10
U.S. Commodities, Minneapolis, MN (888-293-1640)
          Illinois             Dry              $140          $135        $5
          Indiana              Dry              $130          $130        $0
          Iowa                 Dry              $130          $125        $5
          Michigan             Dry              $125          $125        $0
          Minnesota            Dry              $118          $118        $0
          Nebraska             Dry              $145          $145        $0
          New York             Dry              $140          $140        $0
          North Dakota         Dry              $145          $145        $0
          Ohio                 Dry              $135          $130        $5
          South Dakota         Dry              $125          $125        $0
          Wisconsin            Dry              $130          $125        $5
Valero Energy Corp., San Antonio, TX (402-932-5901)
          Indiana              Dry              $125          $125        $0
          Iowa                 Dry              $125          $125        $0
          Minnesota            Dry              $120          $120        $0
          Nebraska             Dry              $140          $140        $0
          Ohio                 Dry              $135          $130        $5
          South Dakota         Dry              $120          $120        $0
          California                            $195          $195        $0
Western Milling, Goshen, California (559-302-1074)
          California           Dry              $208          $210       -$2
*Prices listed per ton.
          Weekly Average                        $133          $131        $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     12/14/2017   $3.3625      $120.09
                             Soybean Meal     12/14/2017   $321.20
            DDG Weekly Average Spot Price        $133.00
                                  DDG Value Relative to:   12/14       12/7
                                                    Corn   110.75%      108.28%
                                            Soybean Meal    41.40%       39.28%
                               Cost Per Unit of Protein:
                                                     DDG     $4.93        $4.85
                                            Soybean Meal     $6.76        $7.02
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 Mary Kennedy on Twitter @MaryCKenn 

******************************************************************************
Long Trains Get Longer; Time to Put the Brakes on Size? 

   Long freight trains have continued to get longer. Has the time come to put 
the brakes on how long these trains are allowed to be? That's a question two 
members of the U.S. House of Representatives Committee on Transportation and 
Infrastructure have asked the federal Government Accountability Office (GAO) to 
help answer.

   Committee ranking members Peter DeFazio, D-Ore. and Michael E. Capuano, 
D-Mass., have asked the GAO to study the effects of longer freight trains, the 
International Association of Sheet Metal, Air, Rail and Transportation Workers 
(SMART) noted in a recent news story on their website. Currently, the length of 
trains is not regulated.

   Jen Gilbreath Adler, communications director for the House Transportation 
and Infrastructure Committee, sent DTN a copy of the letter, dated Nov. 7, 
2017, that DeFazio and Capuano sent to the GAO. In it, the two started out by 
noting, "On August 2, 2017, a CSX train consisting of five locomotives and 178 
rail cars of mixed freight, including flammable and hazardous liquid, derailed 
in Hyndman, Pennsylvania." This derailment was one of the many reasons the two 
said they were asking GAO to do this study.

   "Recent press reports indicate that some railroads are now operating trains 
with close to 200 or more cars that are more than 2 miles long," they wrote. 
"We have concerns that longer trains can create unusually long delays at grade 
crossings and may pose safety risks to train crews and the public." (To read 
the full letter, visit https://goo.gl/gbn5in)

   "We appreciate that these congressional leaders have asked for a review of 
these dangerously long trains," said SMART Transportation Division President 
John Previsich. "This issue was also addressed by John Risch, our national 
legislative director, at a recent STB hearing."

   In the news release on the SMART website, it was noted that Risch appeared 
Oct. 11 in Washington, D.C., before the Surface Transportation Board (STB) at a 
listening session focused on problems with CSX's service. "Urging CSX to do 
better will not fix the problems that excessively long trains cause," Risch 
said during his testimony.

   In his testimony, Risch asked the STB to immediately restrict train lengths 
to not exceed the length of the sidings on lines these trains operate on. Or, 
at the very least, conduct an investigation on the effect train lengths have on 
service and safety in the industry, he said. 

   "I wrote the FRA last April asking for action on this issue and they have so 
far not even responded to my letter. They have no Administrator and are 
reluctant to do anything until they do," said Risch. 

   Here is a link to Risch's full testimony in which he points out how 
excessively long trains "cause all sorts of logistical problems that cause 
tremendous amounts of delay wherever they go." (https://goo.gl/zH2dz7) 

   The STB is unlikely to take action on this issue any time soon. They are 
currently down to two members, and until they add three more, their hands are 
pretty much tied as far as major decision-making. They still have a few very 
"hot-button" issues that have been hanging in the balance for well over a year 
that need to be resolved before adding anymore on their plate.

   I spoke via email with Chuck Young, managing director of public affairs for 
GAO, and he confirmed that, "We received a request from Congressmen DeFazio and 
Capuano to look at safety and other impacts of longer trains. We accepted their 
request and the work is expected to get underway in February." The study will 
include the CSX, the Union Pacific and all other major railroads who have been 
adding more cars to a "single" train for the sake of adding to their profits.

   I can't help but note that this Doobie Brothers song rang through my head as 
I wrote this story: "Down around the corner, half a mile from here... You see 
them long trains runnin'....."

   And they get longer and longer.

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

   Follow Mary Kennedy on Twitter @MaryCKenn

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

   OMAHA (DTN) -- The DTN average dried distillers grains (DDG) spot price from 
the 39 locations DTN collects bids from was $131 for the week ended Dec. 7, 5 
cents higher than two weeks ago. 

   Merchandisers noted that supplies are "very tight" right now, and prices are 
"well supported," which is pushing the market higher. The California market has 
also moved higher with one merchandiser noting the latest round of wildfires is 
slowing commerce in some spots. There is still very strong demand for rail 
shipments to the Pacific Northwest, California and Mexico.

   Based on the average of bids collected by DTN, the value of DDG relative to 
corn for the week ended Dec. 7 was at 108.28%, and the value of DDG relative to 
soybean meal was at 39.28%. The cost per unit of protein for DDG was $4.85, 
compared to the cost per unit of protein for soybean meal at $7.02. DDG has a 
per-protein unit cost advantage over soybean meal as meal prices rose faster 
than DDG, according to the U.S. Grains Council (USGC).

   The USGC said in their weekly price update that merchandisers are reporting 
DDGS shipments to Vietnam are slowing in December as all Midwest loading points 
are too cold for the required fumigation. However, merchandisers told DTN that 
the recent uptick in shipments to Vietnam in October and through November were 
part of the reason domestic supplies have been tightening.

   Prices for 40-foot containers to Southeast Asia rose $6/metric ton (mt) on 
average this week, with prices for Shanghai, China, and Taiwan increasing the 
most. "The forward curve for DDGS to Southeast Asia is relatively flat, meaning 
the market appears to be well-supplied but in balance with demand," said USGC.

   Earlier in the week, USDA reported that U.S. exports of distillers grains 
totaled 1,027,051 mt in October, up 6% from a year ago. Mexico once again was 
the top importer in October, accounting for 20% of the total, followed by 
Turkey and then four countries in eastern Asia. In the first 10 months of 2017, 
exports of U.S. distillers grains were down 3% from a year ago. With Vietnam 
back in the picture, we should see exports begin to recover. China is still not 
much of a player, coming in at No. 19 on the list of export destinations in 
October. 


                                              CURRENT      PREVIOUS     CHANGE
COMPANY   STATE                              12/7/2017    11/30/2017
Bartlett and Company, Kansas City, MO (816-753-6300)
          Missouri             Dry             $148          $140         $8
                               Modified         $73           $70         $3
CHS, Minneapolis, MN (800-769-1066)
          Illinois             Dry             $130          $122         $8
          Indiana              Dry             $130          $122         $8
          Iowa                 Dry             $125          $123         $2
          Michigan             Dry             $120          $115         $5
          Minnesota            Dry             $128          $125         $3
          North Dakota         Dry             $140          $140         $0
          New York             Dry             $132          $132         $0
          South Dakota         Dry             $137          $135         $2
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
          Kansas               Dry             $140          $135         $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
          Indiana              Dry             $125          $122         $3
          Iowa                 Dry             $120          $120         $0
          Michigan             Dry             $125          $122         $3
          Minnesota            Dry             $120          $120         $0
          Missouri             Dry             $140          $135         $5
          Ohio                 Dry             $125          $122         $3
          South Dakota         Dry             $130          $130         $0
    `              `
United BioEnergy, Wichita, KS (316-616-3521)
          Kansas               Dry             $142          $140         $2
                               Wet              $55           $60        -$5
          Illinois             Dry             $144          $140         $4
          Nebraska             Dry             $142          $140         $2
                               Wet              $55           $60        -$5
U.S. Commodities, Minneapolis, MN (888-293-1640)
          Illinois             Dry             $135          $122        $13
          Indiana              Dry             $130          $112        $18
          Iowa                 Dry             $125          $120         $5
          Michigan             Dry             $125          $112        $13
          Minnesota            Dry             $118          $118         $0
          Nebraska             Dry             $145          $135        $10
          New York             Dry             $140          $130        $10
          North Dakota         Dry             $145          $145         $0
          Ohio                 Dry             $130          $115        $15
          South Dakota         Dry             $125          $120         $5
          Wisconsin            Dry             $125          $120         $5
Valero Energy Corp., San Antonio, TX (402-932-5901)
          Indiana              Dry             $125          $120         $5
          Iowa                 Dry             $125          $120         $5
          Minnesota            Dry             $120          $120         $0
          Nebraska             Dry             $140          $130        $10
          Ohio                 Dry             $130          $130         $0
          South Dakota         Dry             $120          $110        $10
          California                           $195          $195         $0
Western Milling, Goshen, California (559-302-1074)
          California           Dry             $210          $210         $0
*Prices listed per ton.
          Weekly Average                       $131          $126         $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.


                     VALUE OF DDG VS. CORN & SOYBEAN MEAL
                        Settlement Price:   Quote Date      Bushel  Short Ton
                                     Corn      12/8/2017   $3.4000      $121.43
                             Soybean Meal      12/8/2017   $330.00
            DDG Weekly Average Spot Price        $131.00
                                  DDG Value Relative to:   12/7       11/30
                                                    Corn   108.28%      103.23%
                                            Soybean Meal    39.28%       38.83%
                               Cost Per Unit of Protein:
                                                     DDG     $4.85        $4.67
                                            Soybean Meal     $7.02        $6.83
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 Mary Kennedy on Twitter @MaryCKenn 

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

   OMAHA (DTN) -- The DTN average dried distillers grains (DDG) spot price from 
the 39 locations DTN collects bids from was $126 for the week ended Nov. 30, 2 
cents higher from two weeks ago. 

   Based on the average of bids collected by DTN, the value of DDG relative to 
corn for the week ended Nov. 30 was at 103.23%, and the value of DDG relative 
to soybean meal was at 38.83%. The cost per unit of protein for DDG was $4.67, 
compared to the cost per unit of protein for soybean meal at $6.83. Price wise, 
DDG still remains a good choice for feed inclusion over soymeal.

   Cold weather demand and a shortened holiday week were responsible for the 
uptick in prices again this week. Merchandisers noted demand keeps rising in 
certain rail markets, most notably for delivery to the Pacific Northwest and 
California as well as for shipments to Mexico. 

   The U.S. Grains Council (USGC) reported in their weekly price update that 
prices at the U.S. Gulf firmed slightly from the prior week. Containers to Asia 
were mixed, with increases seen for Indonesia, Malaysia and Japan and decreases 
for containers to the Philippines and Bangladesh. Merchandisers also reported 
an uptick in interest from Korea, Indonesia and Vietnam.

   DDGS NEWS

   Ecuador's imports of U.S. distillers grains with solubles (DDGS) increased 
296% year over year to 22,200 metric tons in 2016/2017, the direct result of 
the U.S. Grains Council's work to introduce the feed grains co-product to the 
nation's livestock sector, according to the weekly USGC newsletter. 

   The Ecuadorian government has a corn self-sufficiency policy, effectively 
meaning any product labeled with the word "corn" in its description is subject 
to import restrictions into the country. However, in the past few years, the 
local corn crop has not been enough to cover domestic demand, resulting in 
expensive prices for local corn and the government issuing limited import 
permits.

   However, U.S. DDGS is still allowed to be imported into Ecuador and is still 
a relatively undervalued feed ingredient in this market. To seize this 
potential demand, the council conducted a series of activities to introduce 
DDGS to the industry. The council noted it will continue supporting increased 
use of DDGS in Ecuador by executing additional programs to provide nutritional 
information to livestock producers in the poultry, dairy and beef sectors.


                                              CURRENT       PREVIOUS    CHANGE
COMPANY   STATE                              11/30/2017    11/16/2017
Bartlett and Company, Kansas City, MO (816-753-6300)
          Missouri             Dry              $140          $132        $8
                               Modified         $70            $68        $2
CHS, Minneapolis, MN (800-769-1066)
          Illinois             Dry              $122          $122        $0
          Indiana              Dry              $122          $122        $0
          Iowa                 Dry              $123          $120        $3
          Michigan             Dry              $115          $112        $3
          Minnesota            Dry              $125          $125        $0
          North Dakota         Dry              $140          $135        $5
          New York             Dry              $132          $132        $0
          South Dakota         Dry              $135          $135        $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
          Kansas               Dry              $135          $130        $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
          Indiana              Dry              $122          $125        -$3
          Iowa                 Dry              $120          $120        $0
          Michigan             Dry              $122          $125        -$3
          Minnesota            Dry              $120          $120        $0
          Missouri             Dry              $135          $135        $0
          Ohio                 Dry              $122          $125        -$3
          South Dakota         Dry              $130          $130        $0
    `              `
United BioEnergy, Wichita, KS (316-616-3521)
          Kansas               Dry              $140          $140        $0
                               Wet              $60            $60        $0
          Illinois             Dry              $140          $140        $0
          Nebraska             Dry              $140          $140        $0
                               Wet              $60            $60        $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
          Illinois             Dry              $122          $120        $2
          Indiana              Dry              $112          $110        $2
          Iowa                 Dry              $120          $118        $2
          Michigan             Dry              $112          $110        $2
          Minnesota            Dry              $118          $115        $3
          Nebraska             Dry              $135          $135        $0
          New York             Dry              $130          $125        $5
          North Dakota         Dry              $145          $130        $15
          Ohio                 Dry              $115          $115        $0
          South Dakota         Dry              $120          $120        $0
          Wisconsin            Dry              $120          $115        $5
Valero Energy Corp., San Antonio, TX (402-932-5901)
          Indiana              Dry              $120          $120        $0
          Iowa                 Dry              $120          $115        $5
          Minnesota            Dry              $120          $120        $0
          Nebraska             Dry              $130          $130        $0
          Ohio                 Dry              $130          $130        $0
          South Dakota         Dry              $110          $110        $0
          California                            $195          $188        $7
Western Milling, Goshen, California (559-302-1074)
          California           Dry              $210          $206        $4
*Prices listed per ton.
          Weekly Average                        $126          $124        $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     11/30/2017   $3.4175      $122.05
                             Soybean Meal     11/30/2017   $324.50
            DDG Weekly Average Spot Price        $126.00
                                  DDG Value Relative to:   11/30      11/16
                                                    Corn   103.23%      103.18%
                                            Soybean Meal    38.83%       39.94%
                               Cost Per Unit of Protein:
                                                     DDG     $4.67        $4.59
                                            Soybean Meal     $6.83        $6.54
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 Mary Kennedy on Twitter @MaryCKenn 

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