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Price Assessment

The Price of US Dried Distillers Grains with Solubles (DDGS)

  • What are the US DDGS assessments?
  • How do we assess the DDGS market?
  • Why are these prices important?

What are the US DDGS assessments?

On April 2015, S&P Global Commodity Insights launched two Platts price assessments for US Dried Distillers Grains with Solubles (DDGS), to reflect the primary domestic and export markets for this key animal feed ingredient:

— DDGS FOB Chicago (truck)
— DDGS CIF New Orleans (barge)

They are USD per short ton daily flat price assessments; the FOB Chicago price reflects trucks delivered to the Channahon, Illinois, railhead, the CIF New Orleans price reflects barges delivered to the New Orleans/Mississippi River port zone.

Assessments reflect export quality DDGS, protein content minimum of 25%, the minimum color of 50 (according to the Hunter L test), a fat minimum of 6%, and a moisture level in the range of 10% to 12%, standardized to 11.5%.

How do we assess the DDGS market?

Platts assessments by S&P Global Commodity Insights are based on robust and transparent market data that includes, but is not limited to, firm bids and offers, expressions of interest to trade and confirmed trades reported across the trading day.

- The FOB Chicago assessment reflects delivered trucks on a calendar month basis. Commodity Insights assesses delivery in the current month until the 21st of that month when the assessment rolls to delivery over the next calendar month. If the 21st day of the current month should fall on a public holiday or weekend, the roll to next month will take place on the business day immediately after the 21st day of the month.

- The FOB New Orleans barge assessment reflects barges that have loaded over any period in the current month of the date of publication. Commodity Insights rolls to assess delivery from barges that have loaded over the next calendar month on the 25th of the current month. If the 25th day of the current month should fall on a public holiday or weekend, the roll to next month will take place on the business day immediately after the 25th day of the month.

Why are these prices important?

A robust and transparent physical price representing the specific dynamics of regional markets and which leads to physical indexation and financially settled derivative instruments is a powerful tool which helps customers and other market participants:

— Manage and hedge price risks
— Leverage arbitrage opportunities
— Carry out negotiations more profitably and efficiently
— Make better-informed planning and trading decisions

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